Hotels Kick off the New Year with Strong Revenue Performance Driven by Average Daily Rate Growth
Hoteliers Need to be on Their Toes to Keep RevPAR Momentum
Hotels in major North American markets experienced strong growth in rate across all travel segments according to data from the January 2015 TravelClick North American Hospitality Review (NAHR). With average daily rate (ADR) growth of 4.5 percent for the next 12 months, ADR will drive revenue per available room (RevPAR) performance in 2015, continuing on the momentum from last year.
12 Month Outlook (January 2015 - December 2015)
For the next 12 months (January 2015 - December 2015), overall committed occupancy* is up 2.8 percent when compared to the same time last year. ADR is up 4.5 percent based on reservations currently on the books.
Transient bookings (individual reservations made by business and leisure travelers) are up 0.9 percent year-over-year and ADR for this segment is up 5.4 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is showing occupancy gains of 2.4 percent and ADR gains of 4.5 percent. Transient business (negotiated and retail) segment occupancy is down 0.9 percent but ADR is up 6.4 percent. Group segment occupancy is ahead by 3.4 percent and ADR is up 2.7 percent, compared to the same time last year.
Hach continued, "Given that occupancy is slightly down or relatively flat in Q1 it's important that hoteliers have a confident outlook as they begin the New Year. While occupancy numbers are weaker than we've seen in some time, the good news is that they appear to strengthen as we look out into Q2."
The January NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by January 4, 2015 from the period of January 2015 to December 2015.
- *Committed Occupancy - (Transient rooms reserved + group rooms committed)/capacity
- **Reserved Occupancy - Total number of rooms reserved/capacity
- The first quarter is composed of forward looking data (January-March)
KCSA Strategic Communications
About TravelClick, Inc.
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.