Leisure travel usually drives hotel business during the summer, while group travel typically takes a vacation. Although this year is no exception, group travel is bucking the trend with "slow but steady growth," says hotel consultancy TravelClick, which yesterday published data from its June 2014 North American Hospitality Review (NAHR).
According to the June NAHR, the transient hotel segment - consisting of individual business and leisure travelers - logged increases in average daily rate (ADR), occupancy and revenue per available room (RevPAR) of 4.7 percent, 3.7 percent and 8.5 percent, respectively, during the second quarter. The group segment, meanwhile, logged ADR, occupancy and RevPAR increases of 0.3 percent, 3.7 percent and 4 percent, respectively.
Looking ahead at the third quarter, TravelClick forecasts similar results: Transient travel will outpace group travel, it predicts, although both segments will continue to grow.
"Typically the third quarter is very strong for transient leisure travel and weaker for group travel, as people take their vacations during these summer months and are less likely to travel for large meetings and conventions," TravelClick Senior Vice President of Global Product Management John Hach said in a statement. "However, the group segment is seeing healthy gains in both ADR and occupancy, signifying the strength of the overall market."