Group Travel Flattens for the Coming Year
by Michael J. ShapiroDecember 6, 2012
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Group room sales and average daily rate are leveling off, according to the November 2012 TravelClick North American Hospitality Review. The data, which is based on committed group occupancy in North America's major markets from the fourth quarter of 2012 through the third quarter of 2013, indicates occupancy is down 0.1 percent and ADR is up just 1.6 percent compared to a year ago. "After 18 months of solid gains, the group segment is beginning to level off," said Tim Hart, TravelClick's executive vice president of enterprise research and development. "When looking at group commitments for the fourth quarter and the subsequent three quarters, this is the first time that committed room nights are showing a decline. We will be monitoring this closely to see if business and individuals are 'pausing' before making large group commitments until after the New Year." Committed occupancy across all travel segments through October of next year is up by 1.6 percent, however, thanks to strong demand for transient business and leisure travel. Average daily rate is up 3.4 percent year-over-year across all segments, and revenue per available room has increased by 6.7 percent. For the remainder of 2012, committed group occupancy is up by 1.2 percent, while all segments together are averaging a 3.0 percent increase.