by Matt Alderton | January 04, 2017

Although 2016 was a challenging year for North American hotels, 2017 is already looking to be much better thanks in part to an increase in group business, reports hotel consultancy TravelClick, which yesterday published the results of its December 2016 North American Hospitality Review (NAHR).

According to TravelClick, occupancy across all hotel segments is up 5 percent year-over-year for the first quarter of 2017, while average daily rates (ADR) are up 3.2 percent. Revenue per available room (RevPAR), meanwhile, increased 2.8 percent and 3.3 percent, respectively, for the group and transient leisure segments.

"The last two quarters of 2016 have been challenging for North American hoteliers as we have seen inconsistent reservation pace and sporadic business demand," said TravelClick Senior Industry Analyst John Hach. "However, over the last two months, we are seeing a material improvement on both transient and group bookings that indicate that North America hospitality will be off to a much brighter start in 2017."

For the next 12 months, group bookings are up 2.8 percent in committed room nights, according to TravelClick, while group ADR is up 2.4 percent. Committed occupancy and ADR for the transient segment, meanwhile -- including both leisure and business -- are up 4 percent and 2.7 percent, respectively. 

"Hoteliers continue to operate in a very complex, dynamic climate where new technologies, economic factors, and geopolitical news can directly impact sales," Hach continued. "As a result, it's more important than ever for hoteliers to focus on their local markets to drive growth through rate and occupancy strategies, as ADR and committed occupancy are both up in the New Year."


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