Finance & DevelopmentFinanceCommitted Occupancy Grows in May

Committed Occupancy Grows in May

NEW YORK—The spring booking bounce is spreading this season, with 22 of the top 25 North American markets showing committed occupancy growth compared to last month. In addition, committed occupancy for the second quarter of 2016 through the first quarter of 2017 is also up 4.6 percent compared to last year, according to new data from TravelClick’s May 2016 North American Hospitality Review (NAHR).

“Over the past 30 days, there has been a noticeable increase in new committed occupancy demand,” said John Hach, TravelClick’s senior industry analyst. “The growth is impressive for both year-over-year reservations and bookings that have been added within the last month. However, this recent growth is relatively short-term. It’s important to note that group booking pace during the past month has actually decreased by over 10 percent. Additionally, business demand is soft and continues to lag.”

For the next 12 months (May 2016 – April 2017), transient bookings are up 3.0 percent year-over-year, and ADR for this segment is up 1.6 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is showing occupancy gains of 4.4 percent, with ADR gains of 2.1 percent. The transient business (negotiated and retail) segment is down -0.3 percent, but ADR is up 1.3 percent. Lastly, group bookings are up 6.8 percent in committed room nights over the same time last year, and ADR is up 3.4 percent.

“As we move from the second quarter into the third quarter of 2016, we can see that the competition is heating up this year, especially with regards to direct booking initiatives,” added Hach. “Hoteliers cannot take any segment for granted and must actively promote their properties across all channels throughout the upcoming peak travel months.”

The May NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by May 1, 2016, from the period of May 2016 to April 2017.