Group and leisure segments generate the strongest average daily rate performance
NEW YORK – June 24 2019 – TravelClick, an Amadeus company, today released new data from the Company’s May North American Hospitality Review (NAHR). According to the data, average daily rate (ADR) performance continues to offset stagnant hotel occupancy levels across the majority of North American hotel markets. In Q2 2019, group ADR is up 1.6 percent and transient leisure is also up 2.5 percent.
“While the 12-month occupancy outlook continues to trend down, there are a number of key metrics showing signs of stability and consistency. These early indicators lessen some concern over declining occupancy and offers positive news for North American Hoteliers. Of particular note is the continued strength of the Global Distributions Systems on track for a record year of worldwide hotel bookings. Our latest projections indicate growth of over one million incremental GDS hotel reservations in 2019, generating over 76 million annual hotel bookings for the first time in history.” Said John Hach, Senior Industry Analyst, TravelClick.
Twelve-Month Outlook (May 2019 – April 2020)
For the next 12 months (May 2019 – April 2020) transient bookings are down 4.4 percent year-over-year, and ADR for this segment is up 1.9 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is down 7.9 percent in bookings, but ADR is up 3.2 percent. Additionally, the transient business (negotiated and retail) segment is down 0.2 percent in bookings and 0.1 percent in ADR. Lastly, group bookings are down 0.7 percent in committed room nights* over the same time last year, and ADR is up 2.8 percent.
“While recent statistics show encouraging news, there remains concern on overall 2019 demand, particularly within the leisure travel segment throughout the second and third quarters. For example, second quarter 2019 transient leisure demand is currently declining by -4.4% and showing signs of further deterioration throughout the third quarter. Therefore, it is imperative hoteliers remain vigilant on utilizing advance reservation business intelligence solutions to frequently gauge local market developments. Concurrently, there is heightened need to continually offer competitive pricing while investing in demand generation initiatives to capture and convert travelers looking for accommodations during the peak summer travel season.”
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, 2019 for the period of May 2019 – April 2020.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity.
The second quarter combines historical data (April) and forward-looking data (May and June).
About TravelClick, an Amadeus Company
TravelClick offers innovative, cloud-based and data-driven solutions for hotels around the globe to maximize revenue. TravelClick enables over 25,000 customers to drive better business decisions and know, acquire, convert and retain guests. The Company’s interconnected suite of solutions includes Business Intelligence, Reservations & Booking Engine, Media, Web & Video and Guest Management. As a trusted hotel partner with more than 30 years of industry experience, TravelClick operates in 176 countries, with local experts in 39 countries and 14 offices in New York, Atlanta, Barcelona, Bucharest, Chicago, Dallas, Dubai, Hong Kong, Melbourne, Orlando, Ottawa, Paris, Shanghai and Singapore. The Company also provides its hotel customers with access to a global network of over 600 travel-focused partners. Follow TravelClick on Facebook, Twitter and LinkedIn.
Amadeus US press office: Grayling Communications