After the recent presidential election, Hoteliers and the business surrounding the travel and tourism industry are constantly facing downtime. In the first two months of this year, they have recorded the reservation commitments at -0.8 percent. However, a new ray of hope for hoteliers has risen as North American hoteliers progress through the early months of 2017.
In January, hotels were experiencing low booking ratio, but at the end of February, American hoteliers have witnessed a slight improvement in their businesses. As per the data generated by TravelClick’s February 2017 North American Hospitality Review (NAHR), average daily rates (ADR) are expected to rise in the second quarter, and this is good news for all the people operating travel businesses.
Growth in the hotel business
Although the increase of commitment occupancy is yet not stable, it is far better than what it was a month ago. Currently, only 44 percent of North American markets have shown the upward surge in commitment occupancy, but if you will notice ADR, it is growing in almost 21 of the top 25 North American markets. According to John Hach, TravelClick’s senior industry analyst, “ADR has increased 2.6 percent based on reservations. Along with that, both group and transient rates are also passing through a growth phase. As compared to last year, they have also gained an uptick of 3.4 percent and 2.4 percent respectively.”
Transient bookings in the next 12 months
Transient bookings will remain flat in the next 12 months.
Most likely, it will stay at 0.1 percent year-over-year. But ADR will favor American hoteliers and will gain the growth of 2.2 percent. If you break down the segments further, you will notice transient leisure segment is even flattened at -0.1 percent and ADR is up 1.9 percent.
Strategy to increase bookings
Most of the hotels always try to attract millennials and for that, they are rolling out the yoga mat.
Every hotel should adopt this strategy and should put the fitness of their guests first. These days most of the people love to do yoga and hotels can take advantage of this and should add yoga factor in their marketing planning.
