According to TravelClick’s November 2011 North American Hospitality Review, all travel segments — business travel, leisure travel and group business — are experiencing moderate gains in demand and room rate for the next 12 months. The North American Hospitality Review is based on actual hotel bookings from Q4 2011 through Q3 2012.
For this period, committed occupancy is up 3.3% year-over-year, ADR is up 4% and RevPAR is tracking ahead by 5.9%. The business travel segment, which represents 47% of all transient rooms reserved for the next 12 months, will see a 6.7% RevPAR gain.
“Throughout 2011, business travel has been the primary driver for hotel demand and that trend continues in 2012,” said Tim Hart, TravelClick’s executive vice president of business intelligence. “While business travel remains strong, overall demand has slowed and the industry is not experiencing the robust ADR growth that many had hoped for. As we gear up for a new year, sustained growth may not be a guarantee.”
Committed occupancy continues to increase in the fourth quarter of 2011, up 2.3% from Q4 2010, with ADR and RevPAR up 4% and 5.7%, respectively. RevPAR posted a moderate 3.3% gain year-over-year in October 2011, however, it is expected to increase 9.3% in November and 8.2% in December 2011.
Markets that show above average year-over-year occupancy growth throughout the rest of the fourth quarter are Detroit at 22.1%, Tampa at 13.1% and Seattle at 12.7%. Markets showing decreases in growth are Atlanta with a 9.2% decline, Denver with 7.5% and Honolulu with 5.5%.
According to the report, RevPAR in Q1 2012 is expected to increase 7.6% from the prior year, up 13.4% in January, down 2.1% in February and 9.5% higher in March. This is the highest quarterly RevPAR gain in a year. Demand throughout all customer segments continues to show moderate improvement, with group demand up 1.3%, leisure up 4.6% and business up 1.8%.
Markets showing strong year-over-year occupancy growth in the first quarter of 2012 are Indianapolis at 33.7%, Detroit at 20.4% and Chicago at 21.9%. Markets showing negative occupancy growth are Dallas with a 24% decline, Tampa with 13.1% and Washington, D.C., with 8.9%.