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Travel Outlook Strong for Remainder of 2011October 5, 2011 By: George Dooley Travel Agent
As the third quarter of 2011 comes to a close, TravelClick’s September 2011 North American Hospitality Review indicates that hotel demand for the remainder of 2011 will continue to be strong. Business travelers continue to drive strong hotel performance, which has been the case over the course of 2011, TravelClick reports. The North American Hospitality Review is based on recent reporting of hotel bookings for the period September 1, 2011 through August 31, 2012.
For the next twelve months, committed occupancy is up 2.0 percent year-over-year, while average daily rate (ADR) is up 4.8 percent, and revenue per available room (RevPAR) is tracking ahead by 6.1 percent.
"As the late summer leisure travel season comes to a close, it is clear that the business travel segment will resume its role as the primary demand driver for U.S. hotels throughout the rest of 2011,” said Tim Hart, executive vice president, business intelligence, TravelClick.
“However it is important to note that, while the outlook for the travel industry is strong, we need to pay close attention to the recent pace of bookings, particularly in group travel, which has slowed over the last 30 days. Over the next several months, it will need to be determined whether this slower pace is an aberration, or indicates a true slowdown in group demand," Hart said.
In Q3 2011 business travel is up 4.0 percent in both committed occupancy and average daily rate (ADR) compared to last year. Leisure travel is up 1.0 percent in committed occupancy and ADR is up 5.1 percent. Group demand is down versus the same time last year.
Markets that show strong occupancy growth in the third quarter are Indianapolis (12.1 percent), Tampa (12.4 percent) and Philadelphia (9.8 percent). Markets showing negative occupancy growth are Miami (-17.2 percent), Honolulu (-6.1 percent) and Atlanta (-4.6 percent).
With the majority of hotels in the top 25 markets increasing their rates for the fourth quarter, the average publicly available rate for a room is up 9.8 percent from last year. Transient pricing continues to drive ADR, which is up 5.5 percent compared to Q4 2010.
Committed occupancy continues to level off, increasing only 0.8 percent.
Markets that show above average occupancy growth in the fourth quarter are Detroit (29.7 percent), San Francisco (15.6 percent) and Houston (11.7 percent). Markets showing below average growth are Atlanta (-9.7 percent), Denver (-11.3 percent) and Miami (-25.9 percent).
TravelClick offers hotels reservation solutions, business intelligence products and comprehensive media and marketing solutions to help hotels grow their business.
TravelClick's North American Hospitality Review is based on reservation and committed group sales data by hotel companies participating in TravelClick’s MarketVision Demand Position Product. These include Gaylord, Hilton, Hyatt, InterContinental, Loews, Marriott, Omni and Starwood.
The data is collected in 25 major North American Markets, representing 202 million annual room nights and $27 billion in annual room revenue.