Report: In Q2, Hoteliers See Continued Growth in North America

NEW YORK—TravelClick has released new data from its April 2018 North American Hospitality Review (NAHR). According to this data, North American hoteliers are experiencing continued growth in the second quarter of this year, with bookings up 2.7% and ADR up 2.5% across all travel segments.

Driving much of this growth is group travel, up 7.5% in bookings, 3.8% in ADR and 11.6% in RevPAR. Additionally, RevPAR for all travel segments is up 5.3%.

“Not only are hoteliers seeing a notable uptick in second-quarter reserved group bookings, but ADR is also increasing across the board, up 1.9% in transient overall, 2.4% in transient business and 1.7% in transient leisure,” said John Hach, senior industry analyst, TravelClick. “The start of 2018 has proven to be solid for hoteliers when it comes to both rates and bookings, and the third quarter is slated to echo that sentiment based on preliminary data.”

Twelve-Month Outlook (April 2018 – March 2019)

For the next 12 months, transient bookings are up 2.1% year-over-year, and ADR for this segment is up 2.2%. When broken down further, the transient leisure—discount, qualified and wholesale—segment is up 2.3% in bookings, and ADR is up 2.1%. Additionally, the transient business (negotiated and retail) segment is up 1.4% in bookings, and ADR is up 2.6%. Lastly, group bookings are up 1.2% in committed room nights* over the same time last year, and ADR is up 3.1%.

“Even in a growing market, to earn their fair share of bookings and to maximize revenues, hoteliers must be vigilant and monitor market demand as occupancy and pricing continually change,” added Hach. “Moreover, the best performing hotels will offer customers a personalized experience across their entire guest journey—giving them a reason to book the hotel initially and stay again as repeat, loyal guests.”

The April NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked during the period of April 2018-March 2019.