Group Bookings Surge at End of 2013
For the first time in many months, the contribution of the group segment to hotel revenue per available room exceeded that of the transient segment in December, according to hotel technology provider TravelClick. "For many hoteliers, this is welcome news," noted Tim Hart, TravelClick's executive vice president of business intelligence. Group bookings have been lagging behind transient bookings for quite some time, but the December 2013 TravelClick North American Hospitality Review reveals a positive forecast for both segments. Through November 2014, overall committed occupancy is up 5.7 percent year-over-year, with average daily rate 3.9 percent higher. Group occupancy is running 5.6 percent higher than last year, with a 2.1 percent climb in rate. Transient bookings remain a bit stronger, at 5.9 percent higher year-over-year and a 4.6 percent higher ADR. "Weakness in the group segment was a source of concern for most of 2013," added Hart, "likely due to lingering economic uncertainty. However, 2013 finished strong for hoteliers, leaving a solid base of group business on the books for the new year. At this point, 2014 is positioned to be a positive year for hoteliers."