North American Hotel Industry Sees Growth in 2012 | TravelClick Hospitality Review
12 Month Outlook Reveals: Increase in Demand and Room Rates Lead to More Revenue for Hotels
TravelClick's October 2011 North American Hospitality Review indicates the hotel industry is continuing to show strong growth in the business, leisure and group travel segments. The North American Hospitality Review is based on actual hotel bookings for the period October 1, 2011 through September 30, 2012.
For the next twelve months, committed occupancy is up 4.8 percent year-over-year, average daily rate (ADR) is up 4.0 percent, and revenue per available room (RevPAR), a top-line indicator, is tracking ahead by 6.5 percent.
Markets showing the most year-over-year occupancy growth include:
Markets that show negative occupancy growth include:
"While there is much uncertainty regarding where the overall economy is headed, hotel industry performance over the remainder of 2011 and heading into 2012 continues to look strong," said Tim Hart, executive vice president, business intelligence, TravelClick. "TravelClick's forward-looking demand data reveals that RevPAR for the fourth quarter is tracking ahead of last year by 6.2%, based on reservations on the books. This improving performance is driven by both stronger occupancy and improved ADR."
Fourth Quarter 2011 (October 2011 – December 2011)
In Q4 2011, ADR is up 4.1 percent compared to last year and will be the primary driver of RevPAR for the third consecutive quarter. Data from the September 2011 NAHR revealed a modest 0.8 percent increase in occupancy, however, new data from the October 2011 NAHR reveals that occupancy is now up 3.6 percent, year-over-year. This increase in demand is driven by an improvement in booking pace during Q3 2011.
Markets that show above average occupancy growth in the fourth quarter are Detroit (21.9 percent), Philadelphia (11.2 percent) and Miami (9.2 percent). Markets showing below average growth are Atlanta (-8.7 percent), Denver (-7.6 percent) and Orlando (-2.8 percent).
First Quarter (January 2012 – March 2012)
According to the report, demand in the first quarter of 2012 is strong, with pace – room nights added over the past month – up 15.3 percent and total committed occupancy up 2.4 percent compared to last year. Group blocks are showing a 2.0 percent increase compared to 2011, with group pace up a strong 18.7 percent.
Markets that show strong occupancy growth in the first quarter of 2012 are Indianapolis (37.7 percent), Detroit (26.3 percent) and Chicago (25.6 percent). Markets showing negative occupancy growth are Dallas (-23.1 percent), Tampa (-14.5 percent) and Denver (-12.4 percent).
The TravelClick North American Hospitality Review is based on reservation and committed group sales data by hotel companies participating in TravelClick's MarketVision Demand Position Product. These include Gaylord, Hilton, Hyatt, InterContinental, Loews, Marriott, Omni and Starwood. The data is collected in 25 major North American Markets, representing 202 million annual room nights and $27 billion in annual room revenue. TravelClick is the only business intelligence provider that provides comprehensive forward-looking data, based on real bookings, to hoteliers around the globe.
About TravelClick, an Amadeus Company
TravelClick offers innovative, cloud-based and data-driven solutions for hotels around the globe to maximize revenue. TravelClick enables over 38,000 hoteliers to drive better business decisions and know, acquire, convert and retain guests. The Company's interconnected suite of solutions includes Business Intelligence, Reservations & Booking Engine, Media, Web & Video and Guest Management. As a trusted hotel partner with more than 30 years of industry experience, TravelClick operates in 176 countries, with local experts in 39 countries and 14 offices in New York, Atlanta, Bucharest, Chicago, Barcelona, Dubai, Hong Kong, Melbourne, Myrtle Beach, Orlando, Ottawa, Paris, Shanghai and Singapore. Additionally, the Company fosters more than 600 travel-focused partnerships for hotels to leverage. Follow TravelClick on Facebook, Twitter and LinkedIn.
Lauren Holmes
404-941-1915
TravelClick, Inc.
