Hotel Revenue and Occupancy Keep Growing
Hotel consulting group TravelClick says that North American hotels should continue to see occupancy and rates grow, although rates are going up faster than occupancy levels. Occupancies are up 2% over a year ago, while average daily rate (ADR) is up nearly 5%.
Group travel is driving occupancy increases; it is up 2%. Leisure demand is up 3.9%, while business demand is down 2.5%
Separately, Pegasus Solutions, the biggest processor of hotel electronic transactions, said that leisure travel continued to outpace 2011 in the fourth quarter of 2012. And corporate bookings rose to match those of December 2011, something that happened in only three other months in 2012, according to Pegasus.
It projects continued growth in both leisure and business bookings.
(Source: Travel Click, Pegasus press releases)
Amtrak Looking 220 mph Trains in Northeast, California
Amtrak and the California High-Speed Rail Authority are looking for proven High Speed Rail trains that are in service now that could travel at speeds of up to 220 mph. It would operate these trains in the Northeast Corridor and in California’s developing High Speed Rail corridor.
California has set a goal of three-hour train trips between Los Angeles and San Francisco by 2029. The system would eventually extend to Sacramento and San Diego, covering 800 miles.
Amtrak wants to add to its high-speed Acela service on the Northeast Corridor, which has seen record-setting ridership over the last decade.
(Source: Amtrak press release)
Rosier Business Travel Outlook
Business travel spending slowed at the end of 2012, mostly because companies postponed investment decisions while they awaited the outcome of the presidential elections and resolution of the fiscal cliff crisis, according to the Global Business Travel Association’s BTI Index, a business travel index.
But the forecast for this year is more positive, with one caveat: that economic and political uncertainty continue to ease.
- U.S. business travel spending is expected to increase 4.6% to $266.7 billion in 2013
- Trip volume will decrease slightly by 1.1% to 431.8 million person trips
- International outbound travel spending will increase 5.9%
- Group travel spending will increase 5.2%
- Price inflation will be modest, meaning companies will spend more real dollars on business trips.
In 2012, the GBTA estimated that U.S. business travel spending grew 1.6% to $254.9 billion, while trips decreased 1.9% to 436.5 million person trips.
(Source: Global Business Travel Association BTI Outlook)