Fourth Quarter of 2017 Brings Brighter Outlook for North American Hoteliers
Third Quarter Data Still Inconsistent, but Final Months Indicate Rate and Bookings Growth
NEW YORK -- While North American hoteliers continue to experience inconsistent booking growth during the third quarter of 2017, the fourth quarter brings long-awaited, welcomed news: healthy growth in both average daily rates (ADR) and bookings across all travel segments, according to new data from TravelClick's August 2017 North American Hospitality Review (NAHR).
"Heading into the final months of the year, the latest data is showing a positive shift that will break the ongoing trend of inconsistent booking growth that has loomed over most of 2017," said John Hach, TravelClick's senior industry analyst. "As a result, North American hoteliers now have viable opportunities to capture local demand and become less reliant on raising rates to increase revenue per available room (RevPAR)."
Twelve-Month Outlook (August 2017 – July 2018)
For the next 12 months (August 2017 – July 2018), transient bookings are up 1.8 percent year-over-year, and ADR for this segment is slightly up 0.5 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is up 4.1 percent, and ADR is flat at 0.0 percent. The transient business (negotiated and retail) segment is down -1.4 percent; however, ADR is up 1.4 percent. Lastly, group bookings are up 1.2 percent in committed room nights over the same time last year, and ADR is up 1.5 percent.
"The upswing in fourth quarter bookings brings a refreshing wave of much-needed optimism for hoteliers," added Hach. "This is an opportune time to place greater emphasis on acquiring and converting new guests, especially through the higher ADR Direct and GDS channels."
The August NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by August 1, 2017, for the period of August 2017 to July 2018.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity
The third quarter combines historical data (July) and forward-looking data (August – September).
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.