US hotel room demand and rates are on the rise

On August 5, 2011, in Travel, by rmurray

Data from the July 2011 TravelClick North American Hospitality Review, detailing hotel bookings currently reserved during the period, June 31, 2011 through June 31, 2012, revealed that revenue per available room has shown consistent improvement for the past 18 months.

The overall industry average daily rate (ADR) for the same period was up 3.7 percent. The data also revealed that demand for the midscale hotel market is increasing, up 16.8 percent, for the next 12 months. This represents one of the largest and most consistent increases in demand for this market segment since the recession.

TravelClick’s North American Hospitality Review also revealed that 3.3 percent more hotel rooms were sold during June 2011 as compared to June 2010. Transient sales – individual business and leisure travel – continued to lead industry growth, as demand and ADR were both up 4.9 percent year-over-year for the future 12 months. Group sales remained soft, improving only 1.5 percent.

The data was compiled by TravelClick, a provider of profitable revenue generating solutions for hoteliers worldwide. TravelClick’s business intelligence division provides comprehensive, forward-looking market intelligence to the global travel industry.

Larry Kutscher, chief executive officer for TravelClick, said, “The data revealed by TravelClick’s North American Hospitality Review shows that individuals are traveling more thereby increasing demand at hotels and allowing them to raise rates. This in turn represents a significant shift in the industry – hotels are not only seeing an increase in occupancy, but in ADR, RevPAR and profitability as well.”

 

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