Weakening March Reservation Pace Creates New Challenges for Hoteliers
March 29, 2017 10:32am
Still, Group Travel Holds Strong in First Quarter of 2017
NEW YORK – March 29, 2017 – As North American hoteliers head into the spring season, new commitments that have been added over the last month (pace) are down -1.6 percent, and committed occupancy* for the first quarter of 2017 through the fourth quarter is down -1.2 percent compared to last year, according to new data from TravelClick’s March 2017 North American Hospitality Review (NAHR).
Group travel, however, is still showing signs of growth in the first quarter, with average daily rates (ADR) up 3.5 percent and occupancy up 1.5 percent. Overall ADR is up 2.0 percent based on reservations that are currently on the books for March 2017 through February 2018, growing in 21 of the top 25 North American markets.
“The advance booking pace for March is disappointing, especially considering the annual spring reservation bounce that usually occurs during this time of year,” said John Hach, TravelClick’s senior industry analyst. “Additionally, even though group travel is holding strong in the first quarter, group, leisure and business travel continue to decline across many major markets.”
Twelve-Month Outlook (March 2017 – February 2018)
For the next 12 months (March 2017 – February 2018), transient bookings are down -4.2 percent year-over-year, but ADR for this segment is up 2.0 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is down -3.8 percent, and ADR is slightly up 1.4 percent. The transient business (negotiated and retail) segment is down -5.5 percent, but ADR is up 2.8 percent. Lastly, group bookings are flat at 0.3 percent in committed room nights over the same time last year, and ADR is up 3.1 percent.
"As the reservation pace in the second quarter of 2017 doesn’t show much improvement, it’s becoming abundantly clear that hoteliers must take proactive steps to capture the advance reservation demand that’s coming into their markets as soon as possible,” added Hach. “While ADR continues to trend higher, hoteliers now have a much greater need to differentiate the guest experience above and beyond their local competition.”
The March NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by March 1, 2017, from the period of March 2017 to February 2018.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity
The first quarter combines historical data (January and February) and forward-looking data (March).
north american hospitality review
TravelClick offers innovative, cloud-based and data-driven solutions for hotels around the globe to maximize revenue. TravelClick enables over 38,000 hoteliers 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, Bucharest, Chicago, Barcelona, Dubai, Hong Kong, Melbourne, Myrtle Beach, Orlando, Ottawa, Paris, Shanghai and Singapore. Additionally, the Company fosters more than 600 travel-focused partnerships for hotels to leverage. Follow TravelClick on Facebook, Twitter and LinkedIn.
Contact: Caitlin Kasunich / Christina Panta
email@example.com or firstname.lastname@example.org /
212.896.1241 / 212.896.1208
Mövenpick Hotels & Resorts Joins TravelClick’s Market-Leading Demand360® Program
TravelClick and InterContinental Hotel Group Announce Expanded Strategic Business Intelligence Partnership
September Outlook Provides Promising Signs for North American Hoteliers
New TravelClick Study and Data Project 2017 as a Record Year for GDS Hotel Bookings
Fourth Quarter of 2017 Brings Brighter Outlook for North American Hoteliers
Summer Continues with Inconsistent Rates and Bookings for North American Hoteliers
TravelClick Releases New Demand360 Platform with Customizable Alerts
TravelClick and Vacatia Integrate Systems to Serve the Resort Industry
Stable Rates with Declines in Bookings Continue as Hoteliers Close Out First Half of 2017
TravelClick Unveils Enhanced Artificial Intelligence-Powered Guest Messenger at HITEC
TravelClick to Debut Transformative New Pricing Engine at HITEC
TravelClick Awarded Three “Best in Class” Wins at 2017 Interactive Advertising Competition
Steady Rates and Inconsistent Bookings Mark Ongoing Trend for North American Hoteliers
TravelClick’s New Digital Media Campaign Portal Provides Real Time, On-Demand Insights
Rates Hold Steady in First Half of 2017 Despite Decline in Bookings
TravelClick’s Industry-Leading Demand360 Business Intelligence Solution Expands International Reach by Adding Eight Key Data-Providing Brands
TravelClick Launches Media Intelligence Platform to Drive Direct Booking Revenue for Hotels
TravelClick Wins More than 130 Awards for Website Design in 2016
Flattening Reservation Pace Presents Ongoing Challenge for Hoteliers
TravelClick to Reveal New Private Offers Feature on Booking Engine 4.0 at ITB Berlin
Please login or register to post a comment.