Hoteliers Round Out First Half of 2018 with Strong Bookings & Rates

NEW YORK—North American hoteliers are continuing to experience upticks across all travel segments in the second quarter, up 2.5% in average daily rates (ADR), 1.4% in bookings and 4% in revenue per available room (RevPAR) compared to the same period last year, according to data from TravelClick’s “June 2018 North American Hospitality Review (NAHR).”

In addition, the group and transient business travel segments are helping to drive this growth in Q2, up 6.5% and 5.5% in RevPAR, respectively, over Q2 2017. Additionally, ADR for group travel is up 2.9%, with bookings up 3.5%, and transient business travel is up 3.1% in ADR, with a 2.4% increase in bookings.

“June 2018 advance reservation increases are continuing to bolster confidence in the strong hotel booking growth that’s set to carry throughout the remainder of 2018, and hopefully into the next year,” said John Hach, senior industry analyst, TravelClick. “Unlike recent previous years, we are seeing steady advance booking growth, especially in business and transient channels, representing the best opportunity within the past three years for hoteliers to capitalize on the growth that’s occurring during the peak summer travel season.”

Twelve-Month Outlook (June 2018 – May 2019)

For the next 12 months, transient bookings are up 2.8% year-over-year, and ADR for this segment is also up 2.8%. When broken down further, the transient leisure (discount, qualified and wholesale) segment is up 2.2% in bookings, and ADR is up 2.5%. Additionally, the transient business (negotiated and retail) segment is up 3.1% in bookings and 3.3% in ADR. Lastly, group bookings are up 1.7% in committed room nights over the same time last year, and ADR is up 1.8%.

“While preparing for the second half of 2018, it’s important to remember that there will be both winners and losers as hoteliers aim to capture bookings,” added Hach. “With this in mind, hoteliers still need to invest in advertising to reach potential guests to fully capitalize on this rising tide.”

The June NAHR looks at group sales commitments and individual reservations in the 25 major North American markets for hotel stays that are booked by June 1, from the period of June 2018 – May 2019.

The second quarter of 2018 combines historical data from April to May and forward-looking data from June.

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