Although it just started, 2015 has been a strong year so far for hotels, according to hotel consultancy TravelClick, which today published its January 2015 TravelClick North American Hospitality Review, data from which show average daily rate (ADR) and occupancy growth of 4.5 percent and 2.8 percent, respectively, for the next 12 months.
To turn ADR growth into revenue per available room (RevPAR) gains, hotels must focus in the immediate future on group business, ADR for which is up by half as much (2.7 percent) for the same period, TravelClick reports.
"As we enter the cold winter months of the New Year, hoteliers need to carefully monitor meeting, convention, and large group events within their market in order to sustain positive RevPAR," said John Hach, senior vice president, global product management, at TravelClick. "Beyond maintaining strong group business, hoteliers need to also keep an eye on the pace of business bookings, as they appear to be softer than in months past."
Despite a positive 12-month outlook, reserved occupancy at North American hotels is down 0.2 percent for the first quarter.
"Given that occupancy is slightly down or relatively flat in Q1 it's important that hoteliers have a confident outlook as they begin the New Year," Hach continued. "While occupancy numbers are weaker than we've seen in some time, the good news is that they appear to strengthen as we look out into Q2."