Industry occupancy rose to 67.1 percent in the three months ending September 2004, up 2.6 percent versus third quarter 2003…
Industry occupancy rose to 67.1 percent in the three months ending September 2004, up 2.6 percent versus third quarter 2003. Third quarter average room rate increased 3.6 percent to $86.32 and revenue per available room (REVPAR) — the combination of occupancy and average room rate and a key industry productivity measure — grew 6.4 percent to $57.96.
In the first nine months of 2004, industry occupancy gained 3.6 percent to 62.7 percent versus same period prior year. Average room rate rose 3.7 percent to $86.41 and REVPAR was up 7.5 percent to $54.20.
Industry room supply increased 1.1 percent in the January – September period, down slightly from 1.3 percent growth in the comparable 2003 period. Industry demand (room nights sold) increased 4.8 percent September YTD compared to a prior year demand increase of 0.8 percent. Room revenue increased 8.7 percent in the first nine months of 2004 to $66 billion.
In the month of September 2004, occupancy gained 7.1 percent to 63.3 percent while room rate improved 3.8 percent to $85.52. September REVPAR rose 11.1 percent to $54.12. The September occupancy increase was the industry’s highest to date in 2004.
“Third quarter industry performance, particularly the month of September, was strong”, said Mark Lomanno, President of Smith Travel Research.
“October is also shaping up to be a good month. If current trends hold, we anticipate full year 2004 industry REVPAR growth could be over 6 percent”, Lomanno added.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
