Eighty percent of the top 25 North American markets are posting committed occupancy growth, according to TravelClick's February 2016 North American Hospitality Review. The review looks at group sales commitments and individual reservations for hotel stays booked by Feb. 1, 2016, for stays between February 2016 and January 2017.
"The group and transient markets are proving to be relatively strong and resilient," noted TravelClick senior industry analyst John Hach, "but companies are closely managing corporate travel expenses. This will continue well into the first quarter of 2016."
The group-booking pace is particularly strong for the next 12 months, up 4.4 percent in terms of committed room nights over this time last year, with an average daily rate increase of 5.3 percent. That said, most of the group room nights are for the second quarter and beyond; group reserved occupancy is actually down 2 percent for the first quarter, though ADR is up by a solid 3.9 percent for the quarter. Group occupancy is up 5.2 percent year-over-year for Q2, however, with a consistent climb in average daily rate of 3.8 percent.
Transient committed occupancy is actually down 0.1 percent for the second quarter, dragged down primarily by transient business travel, which has fallen 3.5 percent year-over-year. Transient leisure travel is up by 0.5 percent for Q2. Average daily rate continues to climb for all transient segments as well, however, up 2.6 percent year-over-year for the first quarter, 2.4 percent for the second quarter and 2.9 percent for the next 12 months.