November 16, 2018
Hospitality industry executives look ahead to 2019
There are headwinds ahead for some hotel brand companies and real estate investment trusts, but the overall tone on calls in regards to next year was positive.Read more
According to new TravelClick data, North American hoteliers continue to experience significant growth in the second quarter of 2018 across all travel segments, up 2.7 percent in average daily rates and 1.4 percent in bookings.
Group travel is particularly strong in Q2, up 3.0 percent in ADR, 4.0 percent in bookings and an impressive 7.2 percent in revenue per available room (RevPAR). Transient travel also steps up in Q3, increasing 6.0 percent in bookings and 2.9 percent in ADR overall. More specifically, transient leisure travel is up 6.6 percent in bookings and 2.9 percent in ADR, and the transient business segment is up 4.6 percent in bookings and 3.8 percent in ADR.
“Hoteliers in the first half of 2018 experienced consistent rates and steady bookings growth, and TravelClick’s forward-looking data predicts that the third quarter will be just as promising,” said John Hach, Senior Industry Analyst at TravelClick. “In fact, it will offer the strongest level of organic growth that North American hoteliers have seen in recent years, which is welcomed news to hoteliers across the industry.”
For the next 12 months (May 2018 – April 2019), transient bookings are up 2.9 percent year-over-year, and ADR for this segment is up 2.8 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is up 3.5 percent in bookings, and ADR is up 2.7 percent. Additionally, the transient business (negotiated and retail) segment is up 1.8 percent in bookings, and ADR is up 3.2 percent. Lastly, group bookings are slightly up 0.8 percent in committed room nights* over the same time last year, and ADR is up 1.7 percent.
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