Hotels Set Up for a Big Year in 2014
Both the transient (individual business and leisure travelers) and group segments are experiencing gains in occupancy and average daily rate (ADR) for the next 12 months, setting the stage for a strong uptick in revenue per available room (RevPAR).
?TravelClick hotel booking data shows that for the next 12 months hotels can expect more guests at higher room rates,? said Tim Hart, executive vice president, business intelligence, TravelClick. ?Although growth in 2013 was dominated by the transient segment, the encouraging pace of group as well as continued transient strength indicates a more balanced outlook for 2014.?
From February 2014 to January 2015, committed occupancy is up 4.2 percent, according to the report. ADR is also up 3.2 percent, based on reservations currently on the books.
For all travel segments, ADR and reserved occupancy have increased by 2.9 percent, while RevPAR has increased by 5.4 percent.
Transient bookings are up 5.7 percent compared to the first quarter of 2013, and ADR for this segment is up 4.7 percent.
The transient leisure segment (discount, qualified and wholesale) is boasting occupancy gains of 5.9 percent and ADR gains of 5.4 percent. The transient business segment (negotiated and retail) is up 4.8 percent with an ADR increase of 4 percent.
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