Growth Greets North American Hoteliers in New Year

NEW YORK—As North American hoteliers kick off the early months of 2017, most travel segments are experiencing healthy average daily rate (ADR) and committed occupancy gains in both the first and second quarter of 2017, according to new data from TravelClick’s January 2017 North American Hospitality Review (NAHR). Occupancy for the transient segment in particular is seeing significant growth in the second quarter, up 10.8 percent for transient leisure travel, 8.6 percent for transient business travel and 10.4 percent overall.

“After overcoming an inconsistent reservation pace and tepid growth during the latter part of 2016, North American hoteliers can feel confident about the start of 2017, as the first two quarters are showing stronger and more consistent growth,” said John Hach, TravelClick’s senior industry analyst. “The second quarter continues to build upon the first quarter’s growth, with all travel segments experiencing a 3.5 percent uptick in ADR, compared to 3.0 percent. This is promising news, especially for the transient business segment, which struggled for growth throughout much of 2016.”

For the next 12 months (January—December 2017), transient bookings are up 3.2 percent year-over-year, and ADR for this segment is up 3.4 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is showing occupancy gains of 4.0 percent with ADR gains of 3.1 percent. The transient business (negotiated and retail) segment is flat at -0.1 percent, but ADR is up 4.0 percent. Lastly, group bookings are up 2.1 percent in committed room nights over the same time last year, and ADR is up 2.7 percent.

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“To ensure that we continue to ride this wave well into 2017, hoteliers must focus even more on differentiating themselves within their local markets and using business intelligence tools to maximize revenue opportunities to gain reservation pace ahead of competitors,” added Hach. “There are a number of factors that affect the health of the hospitality industry on a daily basis, including current events, economic factors and new technologies, and forward pacing data is the key to understanding the marketplace and making the right decisions.”