Short Term Uptick Provides Near Term Opportunities for Summer 2019 Bookings
NEW YORK – July 11, 2019 – TravelClick, an Amadeus company, today released new data from the Company’s June North American Hospitality Review (NAHR). According to the data, average daily rate (ADR) is up 1.0% based on reservations currently on the books for 2019. Group ADR is up 1.7% and transient segment ADR is up 0.7% compared to the previous year. Transient business ADR is down -0.9%, while transient leisure is up 2.3%.
“New June reservations added over the prior 30 days (pace) are up 0.4% compared to a year ago. This is encouraging news as many North American markets are struggling to gain occupancy throughout the current year,” said John Hach, Senior Industry Analyst, TravelClick. “While the longer-term occupancy outlook through the first quarter of 2020 is trending down there remains viable windows of opportunity for hoteliers to actively compete for high value transient guests.”
Twelve-Month Outlook (June 2019 – May 2020)
For the next 12 months, (June 2019 – May 2020) transient bookings are down -1.8 percent year-over-year, and ADR for this segment is also down -0.9 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is down -4.5 percent in bookings, but ADR is up 2.3 percent. Additionally, the transient business (negotiated and retail) segment is up 0.6 percent in bookings, but down -0.9 percent in ADR. Lastly, group bookings are down -2.1 percent in committed room nights* over the same time last year, while ADR is up 1.7 percent.
“Looking out into the third quarter of 2019 there is noticeable weakness in the transient leisure channel which is currently down -9.0 percent year over year,” said Hach. “However, there are opportunities within the transient business segment for opportunistic hoteliers to convert corporate travelers into leisure guests during their same stay. To capture and convert these guests it is critical hoteliers invest in forward-looking business intelligence and online marketing solutions to showcase value and highlight unique differentiation from local competition.”
The June NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by June 1, 2019, for the period of June 2019 – May 2020.
*Committed Occupancy – (Transient rooms reserved + group rooms committed) / capacity.
The second quarter combines historical data (April – May) and forward-looking data (June).
About TravelClick, an Amadeus Company
TravelClick offers innovative, cloud-based and data-driven solutions for hotels around the globe to maximize revenue. TravelClick enables over 25,000 customers to drive better business decisions and know, acquire, convert and retain guests. The Company’s interconnected suite of solutions includes Business Intelligence, Reservations & Booking Engine, Media, Web & Video and Guest Management. As a trusted hotel partner with more than 30 years of industry experience, TravelClick operates in 176 countries, with local experts in 39 countries and 14 offices in New York, Atlanta, Barcelona, Bucharest, Chicago, Dallas, Dubai, Hong Kong, Melbourne, Orlando, Ottawa, Paris, Shanghai and Singapore. The Company also provides its hotel customers with access to a global network of over 600 travel-focused partners. Follow TravelClick on Facebook, Twitter and LinkedIn.