Sparked by broad based demand growth across all customer segments, TravelClick reports a strong demand outlook combined with solid average daily rate (ADR) growth. The occupancy outlook for Third Quarter 2012 through Second Quarter 2013 is strong, with group committed room nights up 5.7 percent and transient room nights reserved up 7 percent.
The estimates are based on current reservations and group commitments on the books in comparison to same time last year. The data is from the July 2012 TravelClick North American Hospitality Review (NAHR).
The July NAHR looks at group sales commitments and individual reservations in 25 major North American markets booked by July 1, 2012 for July 2012 to June 2013.
Committed occupancy for the third quarter of 2012 through the second quarter of 2013 (or the next 12 months) is up 6.1 percent in comparison to same time last year, with 20 of the top 25 North American markets showing increases in committed occupancy for this time period.
Average daily rate is also growing, with an increase of 5.5 percent over the same time last year. This growth is led by the transient segment, which is experiencing a 6.7 percent increase in ADR based on reservations currently on the books. Within the transient segment, business rates are up 7.3 percent and leisure rates are up 5.9 percent.
“TravelClick’s data reveals broad based demand growth across all customer segments. This demand outlook combined with solid ADR growth represents favorable fundamentals that will give North American hotels many options for maximizing their performance through the rest of 2012,” said Tim Hart, executive vice president of enterprise solutions at TravelClick.
Third Quarter 2012 Outlook (July—September 2012): Based on reservations currently on the books, overall committed occupancy for the third quarter is up 5.4 percent year-over-year, with the group segment committed occupancy showing an increase of 5.6 percent. This is supported by a strong August, where group commitment is up 11.1 percent. Third quarter ADR is showing a 5.7 increase over the same time last year, with group segment ADR and transient segment ADR up 5.1 percent and 6.1 percent respectively.
Fourth Quarter 2012 Outlook (October—December 2012): Committed occupancy for the fourth quarter is showing strong gains, up 9.5 percent in comparison to the previous year, supported by significant increases in demand in October (11 percent) and December (17.2 percent). Group committed occupancy is up 8.1 percent in comparison to a year ago, with early booking transient demand coming in very strong, up 17.2 percent over the same time last year.