Hotel Industry Enters 2012 on Solid Footing

Hotels will continue to see strong growth in 2012, primarily driven by rate increases and strong, steady demand for hotel rooms, according to TravelClick’s December 2011 North American Hospitality Review (NAHR).  The NAHR is based on actual hotel bookings from Q4 2011 through Q3 2012.

Over the next twelve months, committed occupancy is up 3 percent year-over-year; average daily rate (ADR) is up 3.6 percent; and revenue per available room (RevPAR), the top-line indicator, is tracking ahead by 5.3 percent. 

“As we enter 2012, TravelClick data shows a ‘slow and steady’ increase in hotel performance,” said Tim Hart, executive vice president, business intelligence solutions, TravelClick.  “The business travel segment continues to be strong and group business shows slow but positive occupancy gains.  Overall occupancy has consistently improved over the past 26 consecutive months and as demand begins to plateau, hotels need to increase rates to leverage increasing demand and maximize revenue.”

The first quarter of 2012 will see a 6.6 percent gain in RevPAR, which is driven by a strong transient segment – individual business and leisure travelers.  January and March prove to be key months in the first quarter of 2012, with 8.4 percent and 9.2 percent increases in RevPAR.  Overall occupancy in the first quarter is expected to increase 2.5 percent and ADR is expected to increase 3.2 percent.  While group commitments for this period are set to increase 1.8 percent, average daily rates will decrease by 1.4 percent for this segment.

Markets showing the greatest year-over-year occupancy growth for the next 12 months include:

Markets showing the weakest occupancy growth for the next 12 months include:

Fourth Quarter 2011 (October 2011 – December 2011)
Overall, Q4 2011 shows a 5 percent RevPAR gain compared to Q4 2010, which is the slowest growth of any quarter in 2011.  Throughout November 2011, RevPAR increased 6.8 percent over last year with a 2.5 percent increase in committed occupancy and a 4.3 percent increase in ADR.  In December, hotels experienced moderate gains in occupancy, ADR and RevPAR, up 2.6 percent, 3 percent and 5.2 percent, respectively.  
                                           

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About TravelClick, Inc.
TravelClick (www.TravelClick.com) is the leading provider of revenue generating solutions for hoteliers across the globe. TravelClick offers hotels world-class reservation solutions, business intelligence products and comprehensive media and marketing solutions to help hotels grow their business. With local experts around the globe, we help more than 30,000 hotel clients in over 140 countries drive profitable room reservations through better revenue management decisions, proven reservation technology and innovative marketing. Since 1999, TravelClick has helped hotels leverage the web to effectively navigate the complex global distribution landscape. TravelClick has offices in New York, Atlanta, Chicago, Barcelona, London, Dubai, Hong Kong, Houston, Melbourne, Orlando, Shanghai, Singapore and Tokyo. Follow us onwww.twitter.com/TravelClick and www.facebook.com/TravelClick.

About the TravelClick North American Hospitality Review 
The TravelClick North American Hospitality Review is based on reservation and committed group sales data by hotel companies participating in TravelClick’s MarketVision Demand Position Product.  The data is collected in 25 major North American Markets, representing 202 million annual room nights and $27 billion in annual room revenue. TravelClick is the only business intelligence provider that provides comprehensive forward-looking data, based on real bookings, to hoteliers around the globe.