The North American hotel sector can end 2013 on a positive note. Both group and transient segments (individual business and leisure travelers) will finish 2013 showing year-over-year increases in occupancy and average daily rate (ADR), according to data from the November 2013 TravelClick North American Hospitality Review (NAHR).
"Group sales were a disappointment through the first three quarters of the year," said Tim Hart, executive vice president, business intelligence, TravelClick. "However, recent group sales pace (new commitments added over the last month), has been quite strong, improving the group segment outlook not only heading into 2014 but also for the fourth quarter as well."
12 Month Outlook (November 2013 – October 2014)
For the next 12 months (November 2013 - October 2014), overall committed occupancy* is up 8.4 percent when compared with the same time last year. ADR is up 3.5 percent based on reservations currently on the books.
Transient bookings are up 6.9 percent year-over-year and ADR for this segment is up 4.3 percent. The transient leisure segment is showing occupancy gains of 7.7 percent and ADR gains of 3.7 percent. The transient business segment is showing occupancy gains of 6.1 percent and a 5.4 percent rise in ADR.
Group segment occupancy is ahead by 8.9 percent and ADR is up 1.8 percent, compared to the same time last year.
Hart concluded, "We are very encouraged by the numbers we are seeing so far for Q1 2014. Both group and transient bookings are coming in significantly stronger than same time last year. This momentum in occupancy growth should provide support for continued strong ADR growth in the first quarter as well."
The November NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by October 27, 2013 for the period of November 2013 to October 2014.
*Committed Occupancy - (Transient rooms reserved + group rooms committed)/capacity
**Reserved Occupancy – Total number of rooms reserved/capacity
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