10/26/2017Group reservations ‘shine’ and business travel posts uptick.
NORTH AMERICAN HOTELIERS are ending the year strong with healthy gains across all travel segments during the fourth quarter of 2017, according to TravelClick.
The company’s October 2017 North American Hospitality Review, shows ADR and occupancy are both up 1.6 percent and 4.3 percent respectively.
“Group travel data, in particular, shines in the fourth quarter,” said TravelClick, with ADR up 2.6 percent and bookings significantly up 7.8 percent. The transient segment is not far behind. Transient business travel is up 2.5 percent in ADR and 2 percent in bookings. Transient leisure travel slightly up 0.2 percent in ADR and 4.1 percent in bookings.
“October’s key reservation metrics offer encouraging news for hoteliers, with structural growth across all travel segments and noteworthy gains in group bookings, specifically,” said John Hach, TravelClick’s senior industry analyst. “What’s more is that we also see promising signs in organic market growth, which is helping to support increases in rates at the same time.”
For the October 2017 through September 2018, transient bookings are up 3.2 percent year-over-year, and ADR for this segment is up 1.3 percent.
When broken down further, the transient leisure (discount, qualified and wholesale) segment is up 4.9 percent, and ADR is up 0.8 percent. Additionally, the transient business (negotiated and retail) segment is up 1.7 percent, and ADR is up 2.5 percent. Lastly, group bookings are up 2.2 percent in committed room nights over the same time last year, and ADR is also up 2.7 percent.
“While this year’s fourth-quarter data is undoubtedly promising, there is still some uncertainty as to whether advance reservation growth will materialize in early 2018,” said Hach. “It remains increasingly important for hoteliers to actively manage future reservation demand through promotional offerings and with advance business intelligence throughout the upcoming months.”
The October NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by October 1, 2017, for the period of October 2017 to September 2018.
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