U.S. hotels reported mostly positive results in three key performance metrics for the third quarter of 2016, according to data just released from hotel industry research firm STR.
Compared with the same period in 2015, the U.S. hotel industry’s occupancy was flat at 71.1%. However, average daily rate (ADR) rose 3.4% to US$127.19, and revenue per available room (RevPAR) grew 3.3% to US$90.48. The flat occupancy performance came as industry supply (+1.6%) and demand (+1.6%) grew at the same pace, STR reported.
Business travel consultancy Advito, which released its 2017 Industry Forecast in September, offers advice for corporate travel buyers navigating the U.S. hotel market:
- Analyze your hotel data to ensure you have the right balance between negotiated rates (for primary markets), fixed chain-wide discounts and dynamic pricing (for secondary markets).
- Make sure your contract terms and conditions prevent hotels from imposing cancellation and change fees, which will become much more common in 2017.
- Keep on top of chains moving your preferred properties from one brand to another. It could lead to reduced services for the same price.
- Rates within individual hotels vary more than ever. Introduce a rate assurance program that actively monitors and re-books rooms when rates fall after the original reservation.
- 2017 is the year to include Airbnb-type alternative accommodations in your program and travel policy. Alternative properties are a good option if a preferred hotel refuses to negotiate or grant last-room availability.
Advito is scheduled to publish an update to its 2017 Industry Forecast in December. Watch for it at advito.com.
Get more analysis and insights by downloading Advito’s 2017 Industry Forecast. Want to discover how to use the insights to improve your travel program? Talk to your BCD Travel account manager or email Advito at [email protected].
