Group and Transient Business Travel Drive Growth in Second Quarter
NEW YORK – June 27, 2018 – TravelClick, a leading global provider of data and revenue-generating solutions for hoteliers, today released new data from the Company’s June 2018 North American Hospitality Review (NAHR). According to this data, North American hoteliers are continuing to experience upticks across all travel segments in the second quarter of 2018, up 2.5 percent in average daily rates (ADR), 1.4 percent in bookings and 4.0 percent in revenue per available room (RevPAR) compared to the same period last year.
Furthermore, the group and transient business travel segments are helping to drive this growth in Q2, up an impressive 6.5 percent and 5.5 percent in RevPAR, respectively, over Q2 2017. Additionally, ADR for group travel is up 2.9 percent, with bookings up 3.5 percent, and transient business travel is up 3.1 percent in ADR, with a 2.4 percent increase in bookings.
“June 2018 advance reservation increases are continuing to bolster confidence in the strong hotel booking growth that’s set to carry throughout the remainder of 2018, and hopefully into the next year,” said John Hach, Senior Industry Analyst, TravelClick. “Unlike recent previous years, we are seeing steady advance booking growth, especially in business and transient channels, representing the best opportunity within the past three years for hoteliers to capitalize on the growth that’s occurring during the peak summer travel season.”
Twelve-Month Outlook (June 2018 – May 2019)
For the next 12 months (June 2018 – May 2019), transient bookings are up 2.8 percent year-over-year, and ADR for this segment is also up 2.8 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is up 2.2 percent in bookings, and ADR is up 2.5 percent. Additionally, the transient business (negotiated and retail) segment is up 3.1 percent in bookings and 3.3 percent in ADR. Lastly, group bookings are up 1.7 percent in committed room nights* over the same time last year, and ADR is up 1.8 percent.
“While preparing for the second half of 2018, it’s important to remember that there will be both winners and losers as hoteliers aim to capture bookings,” added Hach. “With this in mind, hoteliers still need to invest in advertising to reach potential guests to fully capitalize on this rising tide.”
The June NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by June 1, 2018, from the period of June 2018 – May 2019.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity
The second quarter of 2018 combines historical data from April to May and forward-looking data from June.