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Transient Continues to be Key Driver of Hotel Growth

Transient Continues to be Key Driver of Hotel Growth

NEW YORK—As hotels experience growth in both occupancy and average daily rate (ADR), the transient segment —made up of individual business and leisure travelers—continues to drive this growth, according to data from the September 2013 TravelClick North American Hospitality Review (NAHR).

“Revenue per available room (RevPAR) growth through the remainder of 2013 is largely due to the strength of the transient segment,” said Tim Hart, executive vice president, business intelligence, TravelClick. “We expect little to no growth in the group segment over the remainder of 2013. However, group booking pace for 2014 has been healthier, so there is reason to believe that this segment will see more growth in the New Year.”

12 Month Outlook
When looking at the next 12 months (September 2013 – August 2014), overall committed occupancy is up 3.2 percent when compared with last year’s figures. ADR is up 2.5 percent based on reservations currently on the books.

Transient bookings are up 6.1 percent year-over-year and ADR for this segment is up 3.6 percent. The transient leisure segment is showing occupancy gains of 6.6 percent and ADR gains of 3.8 percent. The transient business segment is showing occupancy gains of 5.1 percent and a 3.5 percent rise in ADR.

The group segment is relatively flat, experiencing an occupancy increase of 2 percent and an ADR gain of 0.4 percent compared to the same time last year.

“There has been moderate growth in RevPAR in Q3 2013,” said Hart. “It is strength in transient business demand combined with healthy leisure rate growth that has been driving transient segment performance this quarter.”

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