Knowland: Tampa leads U.S. in group travel revenue recovery for Q3
The 13 top markets fully recovered group revenue in the quarter, achieving 100 percent
By Vishnu Rageev ROct 24, 2023
THE TOP 25 U.S. markets have recovered 99.1 percent for group business in the third quarter of this year compared to the same time in 2019, according to the Hospitality Group and Business Performance Index from Knowland and Amadeus. Group bookings are calculated using occupancy and ADR.
The index combined event data from Knowland with hotel booking data from Amadeus to give both individual and aggregate views of the key drivers of hotel performance and is updated on a quarterly basis, Knowland said in a statement.
The third quarter data shows that 13 of the top markets have recovered 100 percent of group revenue, including:
Tampa 116.8 percent
Las Vegas 114 percent
San Diego 111.5 percent
New York City 111.2 percent
Phoenix 109.9 percent
Seattle 108.5 percent
Orlando 108.2 percent
Dallas 107.8 percent
Houston 107.7 percent
Detroit 2 percent
Washington, D.C. 104.5 percent
Denver 101 percent
Boston 100 percent
Insights from the index are as follows:
Strong ADR drives group recovery – Achieving 103 percent of 2019 revenues, the group index continues an upward trend, driven by a 12.1 percent increase in ADR.
Meeting and event business continues to provide stability – Event business enables hoteliers to build a foundation for their business with a traditionally longer booking window in view. Events achieved 89.1 percent of 2019 levels. Key markets doing this well include Austin, Texas, Nashville, Tennessee, and Denver, Colorado, which all achieved 145 percent over 2019 for the third quarter.
Optimism for improving corporate travel – Reflecting the potential upward trajectory of business travel, there are promising signs as the negotiated segment inches closer to pre-pandemic levels. The top three markets leading this rebound include Miami (119 percent), San Diego (112 percent), and Las Vegas (108 percent.)
Corporate meetings dominate – Remote work continues to drive the need for small company gatherings to foster collaboration and culture building, as demonstrated by the fact that 70 percent of meetings in Q3 averaged less than 200 attendees. The top segment was 101-200, representing 20.4 percent of total meetings, closely followed by groups of 26-50 attendees, representing 19.8 percent.
In September, the event volume surged 21.7 percent year over year compared to the previous year, Knowland said. Meanwhile, Nashville experienced the highest growth rate at 30.7 percent.
Sonesta launched Americas Best Value Studios, an extended-stay version of ABVI.
The model targets owners seeking limited front desk and housekeeping.
The brand meets demand for longer-term, value-focused stays.
SONESTA INTERNATIONAL HOTELS Corp. launched Americas Best Value Studios by Sonesta, an extended-stay version of its franchised brand, Americas Best Value Inn. The model targets owners seeking limited front desk and housekeeping, optional fitness center and lobby market along with standard brand requirements.
The brand aims to address the growing demand for longer-term, value-driven accommodations, Sonesta said in a statement.
"Americas Best Value Studios by Sonesta represents a strategic evolution of our trusted Americas Best Value Inn brand," Keith Pierce, Sonesta’s executive vice president and president of franchise development, said. "We are expanding our offerings to directly address the increasing demand within the extended-stay segment, providing a practical solution for travelers seeking longer-term lodging at value. This new brand type allows our local franchised owner-operators to tap into a growing market while maintaining the community-focused experience that Americas Best Value Inn is known for."
ABVI has a majority presence in secondary and tertiary markets, the statement said.
The extended-stay brand’s operational model features a front desk, bi-weekly housekeeping, on-site laundry and pet-friendly accommodations, Sonesta said. Guests can also earn or redeem points through the Sonesta Travel Pass loyalty program.
In August, Sonesta named Stayntouch its preferred property management system after a two-year review of its ability to support the company’s franchise model. The company operates more than 1,100 properties with more than 100,000 rooms across 13 brands on three continents.
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