Hoteliers Celebrate Summer with Sizzling RevPAR and Leisure Booking Performance
NEW YORK – July 22, 2015 – Hotels in major North American markets are continuing to experience strong growth driven by increases in average daily rate (ADR) according to data from the July 2015 TravelClick North American Hospitality Review (NAHR). Strong rates and steady bookings are leading to a significant uptick in revenue per available room (RevPAR).
“Hoteliers have good reason to celebrate this summer given the encouraging trends in leisure booking pace and ADR,” said John Hach, Senior Industry Analyst at TravelClick. “While our overall forecast is positive, it’s very important that hoteliers focus on creating experiences throughout the entire guest stay that provide value in order to continue on the momentum through the end of summer.”
12 Month Outlook (July 2015 – June 2016)
For the next 12 months (July 2015 – June 2016), overall committed occupancy* is up 2.4 percent when compared to the same time last year. ADR is up 4.3 percent based on reservations currently on the books. Transient bookings (individual reservations made by business and leisure travelers) are up 3.1 percent year-over-year and ADR for this segment is up 4.7 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 3.5 percent. Transient business (negotiated and retail) segment occupancy is down 0.2 percent but ADR is up 6.4 percent. Group segment occupancy is up 2 percent and ADR has increased to 3.4 percent, compared to the same time last year.
Hach added, “There is growing evidence indicating that hoteliers who are doing well this summer are rewarding guests with value added inclusions. This contributes to strong ADR growth coupled with positive guest reviews that drive repeat business. It is clear that savvy hoteliers have caught on to this successful correlation.”
The July NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by July 5, 2015 from the period of July 2015 to June 2016.
*Committed Occupancy – (Transient rooms reserved + group rooms committed)/capacity
**Reserved Occupancy – Total number of rooms reserved/capacity
The third quarter combines forward looking data (July – September)
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About TravelClick, Inc.
TravelClick (TravelClick.com) provides innovative cloud-based solutions for hotels around the globe to grow their revenue, reduce costs and improve performance. TravelClick offers hotels world-class reservation solutions, business intelligence products, and comprehensive media and marketing solutions to help hotels grow their business. With local experts around the globe, we help more than 38,000 hotel clients in over 160 countries drive profitable room reservations through better revenue management decisions, proven reservation technology and innovative marketing. Since 1999, TravelClick has helped hotels leverage the web to effectively navigate the complex global distribution landscape. TravelClick has offices in New York, Atlanta, Chicago, Barcelona, Dubai, Hong Kong, Melbourne, Orlando, Shanghai, Singapore and Tokyo. Follow us on twitter.com/TravelClick and facebook.com/TravelClick.
Danielle DeVoren / Andrew Herweg
KCSA Strategic Communications
212.896.1272 / 212.896.1273