Group bookings grow in 201217 Feb, 2012
Hotels are seeing strong growth in group commitments for 2012, according to TravelClick’s January 2012 North American Hospitality Review (NAHR). The January NAHR is based on group sales and reservations for hotel stays in 2012.
Group committed occupancy on the books for 2012 is up 5.4 percent compared to this time last year. Moreover, group pace, or new group sales booked over the prior 30 days, was up 6.2 percent compared to the same period a year ago. The group outlook for the second half of 2012 is particularly strong, with committed occupancy up 8 percent in the third quarter and 10.9 percent in the fourth quarter.
The transient segment, which consists of individual leisure and business travelers, is growing slightly slower than group. Transient room nights on the books for 2012 are up 4.8 percent versus the same time last year.
Overall, committed occupancy, group and transient combined, is up 3 percent year-over-year. Average daily rate (ADR) is up 3.6 percent, and revenue per available room (RevPAR) is tracking ahead by 5.3 percent, based on reservations currently on the books for 2012.
"While the business travel segment contributed to much of the growth in 2011, group business looks to be a key driver for hotel revenue growth this year," said Tim Hart, executive vice president of business intelligence at TravelClick. "During the economic downturn, group bookings took a big hit, as many companies and businesses cut budgets for large conferences and meetings. To see group bookings growing at such a strong pace again is very encouraging for the hotel industry.”
First Quarter 2012 (January 2012 - March 2012)
Committed occupancy for the first quarter of 2012 is up 2.5 percent and ADR is up 2.9 percent, accounting for a 5.4 percent growth in RevPAR. This RevPAR growth can largely be attributed to strong hotel performance in the month of March, with RevPAR up 8.8 percent compared to March 2011. Transient business demand and leisure demand are also experiencing modest gains over Q1 2011, up 3.7 percent and 2.4 percent respectively.
External Source : Hotel Management
Reproduction in whole or part is prohibited.