The following is an edit-reprint of an article by Nathan Greenhaigh on October 8 in Hotels magazine – Dave Hogg. I want to point out that the committed occupancy and ADR growth through July 2013 compound for about an 8% YTY growth in RevPAR through mid-year next year. Here’s the article:
Committed occupancy through July 2013 is up 3.9% while ADR is up 4.1% year-on-year for North American hotels, according to new data from TravelClick.
Through July 2013, the group and transient segments are showing increases in occupancy at 3.5% and 4.4%, respectively. Business demand is up 4.1%, and leisure demand is up 4.3% compared to the same time period last year. With respect to ADR, the group segment is up 2.2%, and the transient segment is up 5% year-over-year. Looking at the transient segment more closely, business and leisure rates are up 5% and 5.6%, respectively.
Committed occupancy for the fourth quarter 2012 continues to show gains, up 7.2% year-over-year. Group committed occupancy is up 5.3% and transient demand is strong, increasing 11.7% year-over-year. ADR for Q4 continues to strengthen, up 4.5% over the same time last year. The ADR increase is driven by both group and transient, up 4.6% and 4.4%, respectively.
TravelClick’s September 2012 North American Hospitality Review also found that individual business and leisure travelers are making hotel reservations further in advance, indicating that they have a higher price tolerance and are planning further ahead.
“Business and leisure travelers are booking further in advance, no longer holding out until the last minute,” Hart said.