According to data from the October 2013 TravelClick North American Hospitality Review (NAHR), the current hotel occupancy outlook for 2014 brings some positive news for the group segment, while the transient segment (individual business and leisure travelers) continues to look strong with healthy occupancy and average daily rate (ADR) growth.
?In 2013, group occupancy and ADR growth has been a disappointment,? said Tim Hart, executive vice president, business intelligence, TravelClick. ?While it is too late to see much of a turnaround in 2013, the outlook for 2014 is improving, with group sales over the past month outpacing the same period last year by almost 50 percent.?
For the next 12 months (October 2013 to September 2014), overall committed occupancy is up 7.4 percent when compared with the same time last year. ADR is up 3 percent based on reservations currently on the books.
Transient bookings are up 6.8 percent year-over-year and ADR for this segment is up 4.3 percent. The transient leisure segment is showing occupancy gains of 7.4 percent and ADR gains of 3.7 percent. The transient business segment is showing occupancy gains of 5.4 percent and a 4.8 percent rise in ADR.
Group segment occupancy is ahead by 7.6 percent and ADR remains flat (up 0.6 percent), compared to the same time last year. ?Q1 2014 appears to be a strong quarter across all segments,? said Hart. ?Hotels that put effective distribution, pricing and revenue management strategies in place will have ample opportunity in this favorable market environment to drive positive share and ADR outcomes.?
The October NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that were booked by Sept. 29, 2013 for the period of October 2013 to September 2014.