07 Jun Q2 Brings a Bit of Bad News!
Rates are gradually climbing while occupancy takes a hit, according to TravelClick’s latest report for Q2. This raises red flags for both sides of our audience – including our travel managers and hoteliers – because we can predict to see this pattern through the rest of the year and beyond. That’s right…we’re expecting about eleven more months of inflated travel costs, which doesn’t make our summer (or holiday) vacation plans look so breezy right now. Not to mention, hotel owners are worried about filling their hotels this summer.
“Our latest data indicates that North American hoteliers are still dealing with dips in occupancy across the board, with bookings down -0.7 percent for all travel segments in the second quarter,” said John Hach, TravelClick’s senior industry analyst. “Future booking trends indicate that the inconsistency will likely continue throughout the upcoming summer travel season.”
Here’s the more detailed report (from STR) if you want the brass tacks: “For the next 12 months (May 2017 – April 2018), transient (short-term) bookings are down slightly -0.5 percent year-over-year, but ADR for this segment is up 1.4 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is up 0.7 percent, and ADR is also up 0.7 percent…
The transient business (negotiated and retail) segment is down -1.8 percent; however, ADR is up 2.4 percent. Lastly, group bookings are nearly flat at -0.2 percent in committed room nights over the same time last year, while ADR is up 1.8 percent.”
If you’re managing travel, the best way to mitigate higher hotel costs is more effective travel policy organization, and that’s what we do best. You can trust us to help you get started with your corporate travel policy even before you know exactly what you want or how to reach your budget goals while enforcing your policy.
If you’re a hotel owner who’s seeing the firsthand effects of declining bookings, we can help you meet your occupancy goals. With CLS, you’ll have a powerful hotel network on your side that will stop at nothing to add valuable clients to your hotel: We’ve got strong relationships with partners like Wyndham Hotel Group, IHG, Choice Hotels, Drury, and Carlson Rezidor. We focus on the long-term bookings that provide the largest revenue boosts to our partners. If our client has a lodging need in the area, we will highlight your hotel as an option.