Group Hotel Bookings Give Attendance Hints
Occupancy and average daily room rates (ADR) for group hotel bookings—tied to attendance at events—increased in the fourth quarter of 2013 and are projected to continue to rise through the first three months of this year, though at a slower pace.
According to a report from TravelClick, occupancy is expected to rise 2.6 percent in Q1, with ADR increasing 2.2 percent. ADR’s track is consistent with where it’s been for the last five quarters, but occupancy has fluctuated considerably. Last quarter, it jumped 9.3 percent.
As with group bookings, overall industry ADR has also been consistent, gaining at least 3 percentage points per quarter. Occupancy has risen steadily as well.
“After strong group sales pace early in the fourth quarter of last year, it is a bit disappointing that group bookings have lost some steam heading into the New Year,” says Tim Hart, executive vice president of business intelligence at TravelClick. “That being said, the group segment is still ahead of where it was this time last year, and strong transient demand and ADR growth continues to drive a positive overall outlook for the first part of 2014.”