Group Reservations Lead Spring Sales Surge at Hotels

Thanks to strong growth in new group reservations, hotels have good reason to be optimistic heading into peak travel season, according to hotel consultancy TravelClick, which today released its April 2015 TravelClick North American Hospitality Review, showing a 13 percent increase in new group reservations compared to last April.

"Q2 shows signs of improvement from last month due to an increase in new group hotel booking pace coupled with continued resiliency in overall transient demand," said TravelClick Senior Industry Analyst John Hach.

So far, U.S. hotels have experienced increases of 4.2 percent, 0.8 percent, and 5.6 percent in average daily rate (ADR), reserved occupancy, and revenue per available room (RevPAR), respectively, in the second quarter. For the next 12 months, meanwhile, occupancy and ADR are up 2.1 percent and 4.4 percent, respectively.

Despite a strong second quarter, hotels should watch the individual business traveler market carefully going forward, according to Hach.

"While 75 percent of the top North American travel markets are experiencing growth, hoteliers need to monitor the pace of transient reservations, particularly business travelers, as this segment has dipped slightly in recent months," he said.

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