Corporate Traveller

Bookings and rates for hotels in North America are on the rise

Business travel activity is expected to increase during the North American winter according to new data released by TravelClick.

The recently released August 2014 TravelClick North American Hospitality Review (NAHR) found hotels in major North American markets are experiencing steady growth across the board. Average daily rates (ADR) and the reserved occupancy rates for the leisure and business travel segments are expected to increase in the third quarter.

The new data shows occupancy and ADR will increase by 4.8 per cent and 4.9 per cent respectively in the third quarter for the transient business sector when compared to the same time last year.

TravelClick's Global Product Management Senior Vice President John Hach said the hotel industry is expected to experience an increase in demand throughout the winter.

"While the summer months are typically known to be a strong leisure segment period, the business segment has also seen positive gains," he said.

"This is indicative of a growing economy and it is a welcomed revenue stream for hoteliers in the U.S."

The ADR for the business segment is expected to increase by 3.1 per cent in the 2014 fourth quarter and the committed occupancy rate by 7.7 per cent. 

Data released by the company earlier this month in the TravelClick North American Distribution Review found online hotel bookings were popular among leisure and business travellers.

Mr Hach said it was a good time to be a hotelier as the revenue per available room increased 6.8 per cent in the 2014 Q2, compared with 2013 Q2.

"Consumers are increasingly turning to online channels - whether it's a hotel's website or an OTA - to book their hotel stays. TravelClick's NADR data continues to show the scope and magnitude that all channels have in generating increased bookings and revenue," he said.