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Group reservation pace helps bring 2014 North American hotel performance to a successful close

Health concern creates small blip in transient reservations while corporate travel remains unfazed. For the next 12 months (November 2014 – October 2015), overall committed occupancy is up 4.3 percent when compared to the same time last year. ADR is up 4.1 percent based on reservations currently on the books.

NEW YORK – Hotels in major North American markets showcased their resiliency as they experienced positive growth in both rate and occupancy across most travel segments despite the global Ebola health risk, according to data from the November 2014 TravelClick North American Hospitality Review (NAHR). While leisure transient (individual) booking pace decreased slightly -1.0 percent, transient business increased 1.6 percent, indicating that the scare did not deter individual business travelers.

The positive momentum experienced earlier this year continues well into the final months of 2014, especially with new group reservations pace increasing by 10.5 percent over the past month.

“Despite global travel concerns over Ebola, the hotel sector continues to grow and we expect this trend to continue through the rest of 2014 and into 2015,” said John Hach, Senior Vice President, Global Product Management at TravelClick. “Looking forward, TravelClick sees a real opportunity for capturing shorter term group business which should help bolster overall average daily rate (ADR) performance throughout 2015.”

12 Month Outlook (November 2014 – October 2015)
For the next 12 months (November 2014 – October 2015), overall committed occupancy* is up 4.3 percent when compared to the same time last year. ADR is up 4.1 percent based on reservations currently on the books.

Transient bookings are up 3.6 percent year-over-year and ADR for this segment is up 5.0 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is showing occupancy gains of 3.2 percent and ADR gains of 5.0 percent. Transient business (negotiated and retail) segment occupancy is up 4.5 percent and ADR is up 4.9 percent. Group segment occupancy is ahead by 4.7 percent and ADR is up 2.1 percent, compared to the same time last year.

Hach continued, “As the holiday season rapidly approaches, the outlook is prosperous for hoteliers as most segments are experiencing upticks in performance. Group business is proving to be a strong and robust channel.  This segment encountered the most highs and lows in 2014. We are very encouraged by the pace of group bookings and believe that hotels have a real opportunity to grow this channel throughout 2015.”

The November NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by November 2, 2014 from the period of November 2014 to October 2015.

*Committed Occupancy – Transient rooms reserved + group rooms committed)/capacity
**Reserved Occupancy – Total number of rooms reserved/capacity
The Fourth quarter combines historical data (October) and forward looking data (November-December).

News Editor - TravelDailyNews Media Network | + Posts

Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.

She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.

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