Hotels are seeing strong growth in group commitments for 2012, according to TravelClick’s January 2012 North American Hospitality Review, which is based on group sales and reservations for hotel stays.
Group committed occupancy on the books for 2012 is up 5.4% compared to this time last year, according to TravelClick. New group sales booked over the prior 30 days was up 6.2% 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% in the third quarter and 10.9% in the fourth quarter.
Performance of the transient segment — individual leisure and business travelers — is not quite as strong. Transient room nights on the books for 2012 are up 4.8% versus the same time last year.
Overall, committed occupancy — group and transient combined — is up 3% year-over-year. ADR is up 3.6%, and RevPAR is tracking ahead by 5.3% based on reservations currently on the books for this year.
“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.”