Despite political and economic uncertainty heading into the United States' mid-term elections, North American hoteliers entered the second half of 2018 with "stable" rates and bookings, according to hotel consultancy TravelClick, which last week published the results of its August 2018 North American Hospitality Review (NAHR).
According to TravelClick, average daily rates (ADR) for the third quarter of 2018 are up 1.8 percent year-over-year across all travel segments while bookings and revenue per available room (RevPAR) are up 0.51 percent and 2.3 percent, respectively, for the same period. Performance in the group travel sector is identical, with a 1.81 percent increase in ADR, a 0.5 percent increase in bookings and a 2.3 percent increase in RevPAR.
"The outlook for the remainder of Q3 and Q4 RevPAR growth is continuing on the positive trajectory that occurred in the first half of 2018," said TravelClick Senior Industry Analyst John Hach. "While new reservation pace is gradually slowing, there is still organic growth in the majority of North American markets. This growth, coupled with steady ADR increases, is sustaining a profitable marketplace for most North American hoteliers."
The outlook for 2019 is less optimistic, according to TravelClick, which said next year's market appears to be "softening" thanks in large part to reduced group-travel demand.
"Despite the current growth of the industry, there are indications that 2019 reservation growth will be less consistent than 2018," Hach explained. "TravelClick's forward-looking business intelligence data is currently showing a reduction in next year's advance group reservation pace. Thus, it is incumbent that hoteliers who are heading into their 2019 budgetary planning sessions take into consideration the changing marketplace."