TravelClick‘s September 2011 North American Hospitality Review indicates that hotel demand for the remainder of 2011 will continue to be strong. Business travelers continue to drive strong hotel performance, which has been the case over the course of the year. The review is based on recent reporting of hotel bookings for the period September 1, 2011 through August 31, 2012.
For the next 12 months, committed occupancy is up 2.0 percent year-over-year, ADR is up 4.8 percent, and revPAR is tracking ahead by 6.1 percent. Markets showing the most year-over-year occupancy growth include Detroit (with a committed occupancy of 10.5 percent), Indianapolis (10.2 percent), Philadelphia (6.9 percent), Seattle (6.1 percent), and Chicago (5.2 percent). Meanwhile, the top five weakest U.S. markets include Washington, DC (-2.0 percent); Honolulu (-2.9 percent), Minneapolis-St. Paul (-3.1 percent), Denver (-3.3 percent), and Miami (-6.1 percent).
“As the late summer leisure travel season comes to a close, it is clear that the business travel segment will resume its role as the primary demand driver for U.S. hotels throughout the rest of 2011,” says Tim Hart, executive vice president, business intelligence, TravelClick. “However it is important to note that, while the outlook for the travel industry is strong, we need to pay close attention to the recent pace of bookings, particularly in group travel, which has slowed over the last 30 days. Over the next several months, it will need to be determined whether this slower pace is an aberration or indicates a true slowdown in group demand.”
