As North American hoteliers head into the spring season, new commitments that have been added over the last month (pace) are down -1.6 per cent, and committed occupancy* for the first quarter of 2017 through the fourth quarter is down -1.2 per cent compared to last year, according to new data from TravelClick’s March 2017 North American Hospitality Review (NAHR).Ê
Group travel, however, is still showing signs of growth in the first quarter, with average daily rates (ADR) up 3.5 per cent and occupancy up 1.5 per cent. Overall ADR is up 2.0 per cent 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.Ê
ÒThe advance booking pace for March is disappointing, especially considering the annual spring reservation bounce that usually occurs during this time of year,Ó said John Hach, TravelClick’s senior industry analyst. ÒAdditionally, even though group travel is holding strong in the first quarter, group, leisure and business travel continue to decline across many major markets.ÓÊ
Twelve-month outlook (March 2017 Ð February 2018)Ê
For the next 12 months (March 2017 Ð February 2018), transient bookings are down -4.2 per cent year-over-year, but ADR for this segment is up 2.0 per cent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is down -3.8 per cent, and ADR is slightly up 1.4 per cent. The transient business (negotiated and retail) segment is down -5.5 per cent, but ADR is up 2.8 per cent. 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 per cent.Ê
“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,Ó said MrÊHach. ÒWhile ADR continues to trend higher, hoteliers now have a much greater need to differentiate the guest experience above and beyond their local competition.ÓÊÊ
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.Ê
*Committed occupancy Ð transient rooms reserved + group rooms committed / capacityÊ
The first quarter combines historical data (January and February) and forward-looking data (March). Ê
