NORTH AMERICAN HOTELS are seeing stable ADR and bookings across all travel segments as they enter the second half of 2018, according to travel data research company TravelClick’s August 2018 North American Hospitality Review. ADR increased 1.8 percent in the third quarter compared to the same time last year and bookings rose 0.51 percent.
Transient business travel saw the most growth in the third quarter with a 2.56 percent rise in ADR, a 2.81 percent jump in bookings and 5.45 percent increase in RevPAR. Group travel went up 1.81 percent in ADR and 0.50 percent in bookings. The transient segment overall rose 1.80 percent in ADR and 0.52 percent in bookings.
“The outlook for the remainder of Q3 and Q4 RevPAR growth is continuing on the positive trajectory that occurred in the first half of 2018,” said TravelClick Senior Industry Analyst John Hach. “While new reservation pace is gradually slowing, there is still organic growth in the majority of North American markets. This growth, coupled with steady ADR increases, is sustaining a profitable marketplace for most North American hoteliers.”
TravelClick predicts transient bookings will rise 0.5 percent over the next 12 months, and ADR will grow 2.7 percent. The transient leisure segment is forecast to see a 1.7 percent drop in bookings, however, though ADR will rise 2.1 percent. Transient business is expected to rise 3.6 percent in bookings and 3 percent in ADR, while group bookings are expected to go up 0.7 percent in committed room nights over last year with a 1.9 percent increase in ADR.
“Despite the current growth of the industry, there are indications that 2019 reservation growth will be less consistent than 2018,” Hach said. “TravelClick’s forward-looking business intelligence data is currently showing a reduction in next year’s advance group reservation pace. Thus, it is incumbent that hoteliers who are heading into their 2019 budgetary planning sessions take into consideration the changing marketplace, especially when it comes to allocating adequate marketing funds to compete for transient demand throughout next year.”