Q3 Group RevPAR Up More Than 10 Percent
Revenue per available room for group business is 10.8 percent higher for the third quarter than it was a year ago, according to the September 2014 TravelClick North American Hospitality Review. That's based on data from July and August, in addition to the reserved occupancy and rates for September. "We're starting to see an emerging trend toward the reduction of transient discounting for RevPAR improvement," said John Hach, senior vice president, global product management, of TravelClick. "When demand is strong and sustainable, savvy hoteliers actively manage to minimize discounts for increased RevPAR performance. We anticipate this trend to continue, especially in markets experiencing strong group advance reservation volume. Ultimately, hoteliers are set up to generate more revenue for the remainder of this year into 2015." Group reserved occupancy is up by 7.1 percent year-over-year for the third quarter, and average daily rate for the segment has increased by 3.4 percent. Across all travel segments for the third quarter, rate is up by 5.3 percent, reserved occupancy has increased by 4.3 percent and RevPAR is 9.9 percent higher than it was a year ago. The outlook for the next 12 months is likewise good for hoteliers: Overall committed occupancy is up by 4.4 percent compared with this time last year, and average daily rate is 4.1 percent higher based on reservations on the books.