Stable rates with declines in bookings continue as hoteliers close out first half of 2017 - Insights

Stable rates with declines in bookings continue as hoteliers close out first half of 2017

Heading into the second half of the year, North American hoteliers are continuing to experience stable average daily rates (ADR) alongside declines in bookings during the second quarter of 2017, according to new data from TravelClick’s June 2017 North American Hospitality Review (NAHR). This marks an ongoing trend for hoteliers this year.

TravelClickDespite strong transient leisure travel, with positive gains in both ADR and bookings, all other travel segments are experiencing inconsistencies across the board.

For example, ADR for transient business travel in the second quarter is up 1.5 per cent, but bookings are down -1.5 per cent. ADR for the group segment is also up 1.5 per cent, but occupancy is down -1.6 per cent.

ÒOur latest data predicts a prolonged decline across many North American markets, indicating that this bleak outlook may not ease up anytime soon,Ó said John Hach, TravelClick’s Senior Industry Analyst. ÒTransient leisure travel is the exception, however, up 1.0 per cent and 2.2 per cent for ADR and bookings, respectively, during the second quarter.Ó

For the next 12 months (June 2017 Ð May 2018), transient bookings are slightly down -0.6 per cent year-over-year, but ADR for this segment is up 1.0 per cent.

When broken down further, the transient leisure (discount, qualified and wholesale) segment is up 0.7 per cent, and ADR isÊup 0.6 per cent. The transient business (negotiated and retail) segment is down -1.8 per cent; however, ADR is up 1.5 per cent. Lastly, group bookings are slightly up 0.4 per cent in committed* room nights over the same time last year, and ADR is up 2.7 per cent.

ÒAs we move deeper into the summer season and start the second half of the year, hoteliers should remain cautious of unpredictable booking trends and take advantage of business intelligence tools to endure this period of uncertainty,ÓÊsaid MrÊHach. ÒForward-looking data is a powerful asset to ensure that hoteliers stay ahead of the competition, both locally and overall, to prepare for unforeseeable events that may affect the industry.Ó

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, 2017, for the period of June 2017 to May 2018.

 

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