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Second Quarter Hotel Performance Shows Healthy Growth Across Online Channels

NEW YORK—Second quarter hotel industry performance continued to strengthen with average daily rate (ADR) as the primary driver of revenue per available room (RevPAR) growth for the fifth consecutive quarter, up 5.3 percent in comparison to the previous year, according to data from the TravelClick North American Distribution Review (NADR; Third Quarter 2012). The NADR aggregates hotel bookings by channel for the transient segment to include individual leisure and business travelers.

For the second quarter the channels that experienced the most growth include brand.com (bookings through a hotel’s website) with a 4.0 percent increase in demand and OTAs with 3.6 percent increase. Expedia reported the largest second quarter year-over-year demand growth of 13.8 percent amongst all the OTAs.

The following table illustrates the share of transient room night by channel based on current reservations.

Second Quarter Transient Demand Share by Channel

Brand 26.9%
Voice 15.8%
Direct to hotel 24.3%
GDS 20.2%
OTA 12.8%
“With continued occupancy and rate growth across all segments of demand, hoteliers have ample opportunity to further optimize their performance by paying close attention to their distribution tactics, making sure that they focus on the channels that deliver the most business at the lowest cost,” said Tim Hart, executive vice president of Enterprise Solutions at TravelClick, in an announcement.

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