Mixing Business With Pleasure
Individual business and leisure travelers are making hotel bookings farther in advance, showing not only that they&re planning farther ahead but that they have a higher price tolerance, according to the September TravelClick Hospitality Review, the latest available.
TravelClick found that from July 2012 through August 2013, both group occupancies, which are for events, and transient bookings for both business and leisure travelers were up 3.5% and 4.4% respectively. Business demand is up 4.1% and leisure demand is up 4.3%.
During the third quarter, from July through September, the hotel industry saw a 1.2% increase in occupancy and a 3.8% increase in average daily rates. For the fourth quarter, committed occupant's were up 7.2%, with group-committed occupancy up 5.3% and transient demand increasing 11.7%. ADR continues to strengthen as well, up 4.5% (Source: TravelClick press release).
Hotels in the Americas See Rates, Occupancies Rise, Bucking Global Trends
Hotels in the Americas saw both average hotel rates and occupancies rise year over year in September, the latest numbers from STR Global, a hospitality consulting company. It found that hotel performance throughout the world was mixed.
Average daily rates in the Americas were up 3.6% year over year; occupancies increased by .4% to 63.4%. In the U.S., the average daily rate increased 3 to 4%. San Francisco registered the biggest average daily rate increases with a 14.3% increase.
Occupancies in Europe dipped .4% to 76.6%. The Asia-Pacific region saw rates up 3.7% and occupancies down 1.1% to 67.5%. In the Middle East and Africa, ADR decreased by 1.7% but occupancies increased by 5.4% to 60.7%. (Source: STR Global).
Business Travel Growth
Economic turmoil in Europe, slower growth in China and U.S. unemployment are expected to curb business travel growth in the U.S. throughout the rest of the year, according to the latest GBTA BTI Outlook-United States. The outlook said that business was taking a cautious approach to investing in travel, waiting for greater economic certainty.
- The GBTA is forecasting the total U.S. business travel spending will grow 2.6% this year to a total of $257 billion by the end of the year, with rising business travel costs driving most of that increase.
- Total business trip volume is expected to reach 438.1 million in 2012, down 1.6% fro 2011.
- The GBTA forecasts that business travel spending will grow 4.9% to $270 billion in 2013, slightly more than it forecast in the last quarter.
- It expects total trip volume to fall by 1.1% in 2013.
Business travel spending is often a leading economic indicator—but the job composition in this recovery is in retail, restaurant and manufacturing, fields that typically generate less travel than other industries—so business travel is getting less of a bounce than it usually would in a recovery. (Source: GBTA).