North American hoteliers kick off second half of 2018 with continued steady rates and bookings; Q2 2019 shows signs of softness.
NEW YORK – September 20, 2018 – TravelClick, a leading global provider of data and revenue-generating solutions for hoteliers, today released new data from the Company’s August 2018 North American Hospitality Review (NAHR). According to this data, the second half of the year has stable rates and bookings across all travel segments, up 1.80 percent in average daily rates (ADR) and 0.51 percent in bookings in the third quarter when compared to the prior year. Group travel in Q3 is also up 1.81 percent in ADR and 0.50 percent in bookings, and the transient segment overall is up 1.80 percent in ADR and 0.52 percent in bookings in the same time period.
Transient business travel, however, is experiencing more pronounced growth for the quarter, up 2.56 percent in ADR, 2.81 percent in bookings and 5.45 percent in revenue per available room (RevPAR).
“The outlook for the remainder of Q3 and Q4 RevPAR growth is continuing on the positive trajectory that occurred in the first half of 2018,” said John Hach, Senior Industry Analyst, TravelClick. “While new reservation pace is gradually slowing, there is still organic growth in the majority of North American markets. This growth, coupled with steady ADR increases, is sustaining a profitable marketplace for most North American hoteliers.”
Twelve-Month Outlook (August 2018 – July 2019)
For the next 12 months (August 2018 – July 2019), transient bookings are up 0.5 percent year-over-year, and ADR for this segment is also up 2.7 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is down -1.7 percent in bookings, but ADR is up 2.1 percent. Additionally, the transient business (negotiated and retail) segment is up 3.6 percent in bookings and 3.0 percent in ADR. Lastly, group bookings are up 0.7 percent in committed room nights* over the same time last year, and ADR is up 1.9 percent.
“Despite the current growth of the industry, there are indications that 2019 reservation growth will be less consistent than 2018,” added Hach. “TravelClick’s forward-looking business intelligence data is currently showing a reduction in next year’s advance group reservation pace. Thus, it is incumbent that hoteliers who are heading into their 2019 budgetary planning sessions take into consideration the changing marketplace, especially when it comes to allocating adequate marketing funds to compete for transient demand throughout next year.”
The August NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by August 1, 2018, for the period of August 2018 – July 2019.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity
The third quarter combines historical data (July) and forward-looking data (August – September).
TravelClick offers innovative, cloud-based and data-driven solutions for hotels around the globe to maximize revenue. TravelClick enables over 25,000 customers to drive better business decisions and know, acquire, convert and retain guests. The Company’s interconnected suite of solutions includes Business Intelligence, Reservations & Booking Engine, Media, Web & Video and Guest Management. As a trusted hotel partner with more than 30 years of industry experience, TravelClick operates in 176 countries, with local experts in 39 countries and 14 offices in New York, Atlanta, Barcelona, Bucharest, Chicago, Dallas, Dubai, Hong Kong, Melbourne, Orlando, Ottawa, Paris, Shanghai and Singapore. The Company also provides its hotel customers with access to a global network of over 600 travel-focused partners. Follow TravelClick on Facebook, Twitter and LinkedIn.
The above is a news release written by a third party. While HNN’s editorial mission is to produce unique content, it occasionally publishes timely, newsworthy news releases to complement in-house reporting efforts. All news releases are clearly marked as such. For questions and clarification, please contact Editor-in-Chief Stephanie Ricca at firstname.lastname@example.org.