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Group Outlook Improves Through 2014

NEW YORK—While transient bookings (comprised of individual business and leisure travelers) are still driving growth in both occupancy and average daily rate (ADR) for hotels, the group outlook for the remainder of 2013 is stronger than it has been in past months, according to data from the June 2013 TravelClick North American Hospitality Review (NAHR).

“As we move into summer, we are seeing steady, positive occupancy and ADR gains across all travel segments,” said Tim Hart, executive vice president, business intelligence, TravelClick. “We are particularly encouraged to see an improvement in new group sales. The pace of new bookings had fallen behind last year’s pace in each of the first four months of the year. The most recent data showed that group room nights added over the last month exceeded the same period last year by 8 percent, improving the overall outlook for the group segment headed into the back half of the year.”

12 Month Outlook
When looking at the next 12 months (June 2013 – May 2014), overall committed occupancy is up 2.3 percent versus this time last year. ADR is up 3.4 percent based on reservations currently on the books.

Transient bookings are up 4.1 percent year-over-year and ADR for this segment is up 4.1 percent. The transient leisure segment is showing occupancy gains of 4.7 percent and ADR gains of 4.3 percent. The transient business segment is showing occupancy gains of 3.0 percent and a 3.9 percent rise in ADR.

The group segment is experiencing an occupancy increase of 1.6 percent and an ADR gain of 1.8 percent compared to the same time last year.

“The third quarter is typically a strong quarter for transient leisure travel and a weaker period for group travel, as most people are taking time off to vacation as opposed to attending large meetings and conventions. So while group segment growth is minimal, transient demand – the leisure segment in particular – is strong,” concluded Hart.

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