Hotel ADR continues to drive RevPAR. Tuesday, 5th June 2012 Source : TravelClick
Hotel average daily rate continues to significantly drive revenue per available room growth up over 6 percent based on current reservations on the books in comparison to last year. (According to data from the May 2012 TravelClick North American Hospitality Review (NAHR))
The May NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by April 29, 2012 for the period of May 2012 to April 2013.
Group and transient segments are contributing to occupancy growth with an ADR increase of 4.3 percent and 7 percent respectively in comparison to the same time last year. Nearly all 25 of the top North American markets showed an increase in ADR, with business travel rates up 6.9 percent and leisure travel rates up 6.7 percent based on current reservations on the books for the transient segment.
"Despite uncertainty in Europe and around the world, we continue to see strong growth in all travel segments in North America, including business, leisure and group," said Tim Hart, executive vice president of Enterprise Solutions at TravelClick.
Second Quarter 2012 Outlook (April – June 2012)
Based on reservations on the books as of April 29, revenue per available room (RevPAR) is up of 9.7 percent in the second quarter compared to the same time last year. This is supported by strong increases for the month of May with a 7.6 percent increase and June with a 14.8 percent increase based on current business on the books. May and June are showing a 4.7 percent increase in group committed occupancy and a 4.4 percent increase in transient demand in comparison to the same time period last year.
Third Quarter 2012 Outlook (July – September 2012)
Based on the behavior of early bookers, occupancy growth for the third quarter is being driven mostly by group demand at this point in the booking cycle. Reservations on the books show transient demand continuing to be strong, up 13.7 percent over the same time last year with group demand up 7 percent compared to a year ago.
Additionally, ADR is up 7.5 percent, driven by both group and transient up 7.2 percent and 7.6 percent respectively in comparison to the same period last year based on current bookings.
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