North American Hotels Capitalize on Digital Trend Continuing into 2016
NEW YORK – May 4, 2016 – Hotel industry performance is strengthening, with Q1 2016 revenue per available room (RevPAR) increasing 1.0 percent year-over-year, fueled by online and mobile bookings. According to data from TravelClick’s North American Distribution Review (NADR; Q2 2016), bookings through online travel agents (OTAs), hotel company websites (Brand.com) and in-person travel agents (global distribution systems / GDS) experienced the most growth in bookings in the first quarter, continuing the online / mobile trend from 2015. TravelClick’s NADR report aggregates hotel bookings by channel for the transient segment (individual leisure and business travelers).
In Q1 2016, the OTA (which includes Expedia.com, Priceline.com, etc.), Brand.com and GDS channels all experienced healthy growth in the transient segment, up 5.8 percent, 4.5 percent and 1.8 percent, respectively. Hotel Direct (calls made directly to the property and walk-in customers) and calls to a hotel’s 800-number (the CRO channel) decreased sharply by -9.7 percent and -5.8 percent, respectively. Average daily rates (ADR) across all channels also increased 2.0 percent compared to Q1 2015. Based on reservations that are currently on the books for Q2 2016, TravelClick expects to see additional positive growth, particularly for the OTA and Brand.com channels, when the quarter is complete (see chart below).
“As we move deeper into 2016, it’s clear that the rapid adoption of online and mobile bookings is here to stay. Consumers continue to migrate away from antiquated forms of technology and are moving permanently into the digital sphere in all aspects of their lives, including travel,” said John Hach, TravelClick’s senior industry analyst. “The OTA, Brand.com and GDS channels are all growing in importance and delivering significant revenue for hoteliers, continuing on from the momentum that emerged throughout 2015.”
Share of Transient Rooms Sold by Channel
The table illustrates the share of transient room nights by channel based on actual reservations.
For Q2 2016, transient ADR is ahead by 1.9 percent, with the OTA channel generating the highest ADR growth, up 3.5 percent.
The TravelClick North American Distribution Review is based on data for 25 major North American markets, comprising 231 million annual room nights and $37 billion in annual room revenue.
