Meetings and Conventions Driving Increases in Occupancy
Revenue per available room (RevPar) for hotels nationwide is tracking ahead 7.9 percent, based on 2012 reservations on the books compared to a year ago. This is the highest increase in more than six months, according to data from TravelClick’s March 2012 North American Hospitality Review (NAHR). The March NAHR looks at group sales and individual reservations for hotel stays that are booked by March 2012 for the calendar year (January 2012-December 2012).
Key highlights from the report:
- RevPar across all segments is up 7.9% (the largest increase in six months)
- Group business is driving occupancy (this is not only a good thing for the hospitality sector but good for overall business as this represents meetings & conventions)
- The second quarter at this point looks strong
Florida markets performing above average in terms of occupancy (03/12 – 02/13 vs 03/11 – 02/12) include:
- Tampa: +10.5%
- Miami: +6.5%
- Orlando: +7.8%
Average Daily Rate (03/12 – 02/13 vs 03/11 – 02/12)
- Tampa: +6.0%
- Miami: +6.1%
- Orlando: +5.6%
Group Business Driving Growth
Group business is driving both occupancy and average daily rate (ADR) growth. Group committed occupancy (which is based on contracted group blocks) on the books through the end of 2012 is up 5.1 percent compared to the same time last year. Group ADR, based on group reservations, is showing a strong increase of 4.9 percent over the same time last year.
The transient segment – consisting of individual business and leisure travelers – is showing a 2.8 percent increase in occupancy and a 4.9 percent increase in ADR as compared to last year. Within this segment, business demand is up 2.3 percent with an ADR increase of 5.0 percent, while leisure demand is up 4.2 percent with an ADR increase of 4.8 percent compared to last year.
“TravelClick data shows that hotels nationwide are now experiencing growth in occupancy and ADR across all major segments.” said Tim Hart, executive vice president, enterprise services at TravelClick. “These strong fundamentals give hotels significant opportunity to maximize their revenues by targeting and winning those customers that deliver the highest value to them.”
Overall, committed occupancy (group and transient combined) is up 4.1 percent year-over-year. Average daily rate (ADR) is up 4.9 percent.
First Quarter 2012 Review (January 2012 – March 2012)
RevPAR for the first quarter is currently up 4.7 percent and ADR is up 3.9 percent compared to the same time last year. The transient segment is driving ADR growth with an increase of 3.9 percent, with group ADR up 4.0 percent for the quarter.
For March specifically, committed occupancy is up 2.3% and RevPAR is up 9.3 percent compared to March 2011. Group committed occupancy is up by 2.9 percent and transient occupancy is up 1.8 percent, compared to last year. ADR for March shows significant growth of 5.6 percent.
Second Quarter 2012 Outlook (April 2012 – June 2012)
Committed occupancy is looking strong for the second quarter, up 5.4 percent over last year. ADR continues to strengthen, improving 7.7 percent over last year, based on reservations currently on the books for the quarter.