The transient segment, which consists of individual business and leisure travelers, continues to be the driver of significant growth in the hotel market this summer season according to data from the June 2014 TravelClick North American Hospitality Review (NAHR). The group segment is also displaying slow but steady growth.
“As we get further into the summer, ADR and occupancy continue to look strong across all travel segments,” says John Hach, senior vice president of global product management for TravelClick. “Compared to this time last year, the hotel industry is really feeling the benefits of a stronger economy, and there’s a renewed desire for people to take advantage of the summer weather and travel.”
For the next 12 months (June 2014 through May 2015), overall committed occupancy is up 3.2 percent when compared to the same time last year. ADR is up 3.6 percent based on reservations currently on the books.
Transient bookings are up 4.2 percent year-over-year and ADR for this segment is up 5.1 percent. When broken down further, the transient leisure (discount, qualified, and wholesale) segment is showing occupancy gains of 3.8 percent and ADR gains of 5.9 percent. The transient business (negotiated and retail) segment is up 4.4 percent with an ADR increase of 4.2 percent. Group segment occupancy is ahead by 2.8 percent and ADR is flat (up 0.2 percent), compared to the same time last year.
Hach continues, “Typically the third quarter is very strong for transient leisure travel and weaker for group travel, as people take their vacations during these summer months and are less likely to travel for large meetings and conventions. However, the group segment is seeing healthy gains in both ADR and occupancy, signifying the strength of the overall market.”
