Larger events and other business segment improvements promote stability
ARLINGTON, Va. — April 23, 2024 — Knowland, the world’s leading provider of data-as-a-service insights on meetings and events for hospitality, and Amadeus, a leading technology provider for the travel industry, today present the metrics from the companies’ Hospitality Group and Business Performance Index (the “Index”). Beginning with the first quarter of 2024, the Index now focuses on year-over-year (YOY) performance. This first report shows the group health index is 102.3 percent YOY and six of the top 25 U.S. markets have achieved 110 percent compared to the same time in 2023.
- Las Vegas 121 percent
- Boston 121 percent
- Seattle 119 percent
- Houston 114 percent
- New York City 110 percent
- Minneapolis 110 percent
The Index combines event data from Knowland with hotel booking data from Amadeus’ Demand360+® business intelligence solution to provide aggregate views of the key drivers of hotel performance. The aggregated index reflects performance for all segments – Group, Corporate Negotiated, GDS, and Events – and shows Q1 2024 achieved 99.9 percent overall health compared to 2023.
Additionally, Q1 data shows that more than 52 percent of the top 25 U.S. markets have exceeded 100 percent of 2023, including:
- Seattle 1 percent
- Houston 5 percent
- New York City 9 percent
- Boston 1 percent
- San Francisco 8 percent
- Las Vegas 8 percent
- Washington DC 6 percent
- Detroit 0 percent
- Miami 4 percent
- New Orleans 8 percent
- Chicago 4 percent
- Nashville 3 percent
- Tampa 0 percent
By using industry-leading data from the Knowland platform and trusted Sales & Catering solutions like Amadeus’ Delphi®, hoteliers can develop precise, data-driven strategies to boost group sales and efficiently manage the entire process from lead to event execution.
Key insights from the Index are as follows:
- Group continues to be the top-performing revenue segment achieving 102.3 percent overall health index with room nights at 99.1 percent of last year while ADR increased 3.2 percent.
- Negotiated and GDS performance rally to 2023 levels. Negotiated achieved a 97 percent overall health index. Room night production was 93.6 percent of Q1 2023 while ADR increased by 3.6 percent. GDS achieved a healthy 100 percent overall health index with room night production at 98.2 percent of last year and ADR increasing 1.8 percent.
- Event volume showed strong performance with meetings getting bigger. Meetings continue to provide stability for hotels after the 2023 boom year. Average attendees were up 25 percent, from 116 to 145 estimated number of guests, and the average space used was up 31.1 percent, from 3,037 to 3,981 sq. ft.
- The stabilization of business segments is evident. The comprehensive health index has demonstrated improvement, rising from 94.5 percent in Q4 2023 to 99.9 percent in Q1 2024, indicating inherent stability and robustness across all sectors as organic growth gains prominence.
Go here to download the full report.
The Index helps hoteliers identify top drivers of group business and assess industry ‘health.’ It offers filters for event market segments and booking industries, empowering hoteliers, DMOs, and CVBs to adapt strategies effectively.
ABOUT THE HOSPITALITY GROUP & BUSINESS PERFORMANCE INDEX METHODOLOGY
The Hospitality Group & Business Performance Index uses a multi-factor weighting system that balances metrics such as group, corporate transient, and GDS room nights with average daily rate (ADR) performance. Each factor is averaged to provide a final index score, ensuring a more accurate overall performance assessment.
