NEW YORK—TravelClick released new data from its May 2018 North American Hospitality Review (NAHR). According to this data, North American hoteliers continue to experience significant growth in the second quarter of this year across all travel segments, up 2.7% in average daily rates (ADR) and 1.4% in bookings.
Group travel is particularly strong in Q2, up 3% in ADR, 4% in bookings and a notable 7.2% in revenue per available room (RevPAR). Transient travel also steps up in Q3, increasing 6% in bookings and 2.9% in ADR overall. More specifically, transient leisure travel is up 6.6% in bookings and 2.9% in ADR, and the transient business segment is up 4.6% in bookings and 3.8% in ADR.
“Hoteliers in the first half of 2018 experienced consistent rates and steady bookings growth, and TravelClick’s forward-looking data predicts that the third quarter will be just as promising,” said John Hach, senior industry analyst at TravelClick. “In fact, it will offer the strongest level of organic growth that North American hoteliers have seen in recent years, which is welcomed news to hoteliers across the industry.”
Twelve-Month Outlook (May 2018 – April 2019)
For the next 12 months (May 2018 – April 2019), transient bookings are up 2.9% year-over-year, and ADR for this segment is up 2.8%. When broken down further, the transient leisure—discount, qualified and wholesale—segment is up 3.5% in bookings, and ADR is up 2.7%. Additionally, the transient business—negotiated and retail—segment is up 1.8% in bookings, and ADR is up 3.2%. Lastly, group bookings are slightly up 0.8% in committed room nights* over the same time last year, and ADR is up 1.7%.
“In advance of Q3, hoteliers currently have a unique window of opportunity to capture growing summer transient demand,” added Hach. “To capitalize on this, hoteliers should invest in online media to stand out from the competition and leverage market data to ensure that their investment is locally optimized.”