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News: Main
July 31, 2013

Transient Bookings Continue to Drive Hotel Growth

Overall committed occupancy is up 2.3 percent versus this time last year

News:

Main
July 31, 2013

Transient Bookings Continue to Drive Hotel Growth

Overall committed occupancy is up 2.3 percent versus this time last year

The transient segment⎯⎯made up of individual business and leisure travelers is the key driver of growth for hotels, according to data from the July 2013 TravelClick North American Hospitality Review (NAHR).

“Group has been the big question mark all year long, but with more than half of 2013 behind us, it is clear that this will not be the year of large gains in the group segment,” says Tim Hart, executive vice president, business intelligence, TravelClick. “The pace of bookings for groups has been down for five out of the seven months this year. However, based on current reservations already booked for 2014 at the country’s largest hotel chains, we believe that the industry is positioned for stronger group demand next year.”

When looking at the next 12 months, overall committed occupancy is up 2.3 percent versus this time last year. ADR is up 3.6 percent based on reservations currently on the books. Transient bookings are up 4.9 percent year-over-year and ADR for this segment is also up 4.5 percent, while the transient leisure segment is showing occupancy and ADR gains of 4.5 percent.



The transient business segment is showing occupancy gains of 5.0 percent and a 4.2 percent rise in ADR. The group segment is experiencing an occupancy increase of 1.3 percent and an ADR gain of 1.5 percent compared to the same time last year.

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