NEW YORK—Hotels are continuing to experience consistent growth in 2014, according to data from the March 2014 TravelClick North American Hospitality Review (NAHR). Both the transient (individual business and leisure travelers) as well as the group segment are seeing slow and steady gains in occupancy and average daily rate (ADR) for the next 12 months, with transient leading the charge.
“The harsh winter didn’t stop people from traveling in the beginning of 2014 and as spring emerges, hotels can look forward to continued growth in Q2,” said Tim Hart, executive vice president, business intelligence, TravelClick.
For the next 12 months (March 2014–February 2015), overall committed occupancy is up 4.3 percent when compared with the same time last year. ADR is up 2.8 percent based on reservations currently on the books.
Transient bookings are up 5.5 percent year-over-year and ADR for this segment is up 4.5 percent. When broken down further, the transient leisure (discount, qualified, and wholesale) segment is showing occupancy gains of 5.1 percent and ADR gains of 5.4 percent. The transient business (negotiated and retail) segment is up 5.4 percent with an ADR increase of 3.5 percent. Group segment occupancy is ahead by 3.9 percent and ADR is down 0.4 percent, compared to the same time last year.
“The first quarter of 2014 is strong with both the group and transient segments experiencing gains across the board,” Hart added. “Looking out into Q2, we see that the transient segment is doing particularly well, which is likely due to the fact that the Easter holiday falls in April this year.”
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