Bookings by individual business and leisure travellers have been the major driving factor behind hotel growth this year so far, reported TravelClick this month. According to TravelClick's July 2013 survey, the 'transient' travellers segment, has outperformed the traditional group bookings segment, meaning that the latter has performed less well than was hoped for in 2013 so far.
2013 UNCERTAIN FOR GROUP BOOKINGS
"Group has been the big question mark of 2013", according to TravelClick's Tim Hart. But with over half the year behind us, it has become clear that 2013 will not be the year of big gains in the group booking segment. In fact, according to Mr Hart, the pace of group bookings has been lower than average for five out of the seven months of 2013 so far.
Not all is lost for hotels this year though, as their revenues have been maintained by the transient segment. Made up of individual business and leisure travellers, this segment has remained consistently strong and is predicted to be the key hotel growth driver throughout the remainder of this year.
But group bookings may yet make a resurgence. TravelClick's estimates for 2014, based on early advance booking trends at the major hotel chains, already suggest that the travel industry is likely to see a renewed energy in the group booking segment.
TRANSIENT SEGMENT DRIVING GROWTH THIS YEAR
When examining the 12 month outlook more closely (July 2013 - July 2014), we can see that overall committed occupancy has increased by 2.3% compared to the same time last year. Average daily rate (ADR) has gone up by 3.6% based on existing reservations. Bookings from the transient segment have increased by 4.9% year on year, with ADR up by 4.5%. Additionally, the transient leisure segment is showing occupancy and ADR increases of 4.5%, while the transient business segment is showing occupancy increase of 5% and ADR up 4.2%.
For comparison's sake, the group segment has shown an occupancy increase of 1.3% and increased ADR by 1.5% compared to the same time last year.
Clearly, although group bookings remain a strong driving force that will not go out of fashion in a hurry, the transient traveller segment is also vying for superiority. Hotel marketers would be wise to recognise the unique features of the transient segment and take steps to encourage them to book by tailoring certain marketing campaigns to their needs and preferences.
Discussioncomments powered by Disqus
More from #DTTT
In May we present:Meet…Heili Klandorf-Järvsoo from Estonia Tourist Board
Heili Klandorf-Järvsoo is the Head of Tourism Marketing at Visit Estonia, and she will be joining us at #DTTTCampus alongside a panel of other DMOs to share insights on the in’s and out’s of Visit Estonia’s ‘Storytellers Nest’.
In May we present:Meet…Kevin Wright from Travel Oregon
In a world of always-on content, information overload and the ever-changing digital consumer, how do you stand out from the competition and most importantly, reach your audience? Kevin Wright, Vice President of Global Marketing for Travel Oregon will be joining us at #DTTTCampus in June to talk about Reflecting on the Role of Content to […]
In May we present:Meet…Gloria Loree from Destination Canada
We caught up with Gloria from Destination Canada ahead of #DTTTCampus to get a sneak peek into what we can expect from her talk on Designing Signature Experiences to Build Brand and Narrative.#brand experiences #destination canada #brand narrative #brand stories
In May we present:Meet…Daniel Bury VR Filmmaker
Daniel Bury is one of the youngest & most up and coming creators in the world of VR film-making, travelling the world to create immersive experiences through unique 360 and VR storytelling.#VR experiences #virtual reality experiences #daniel bury #filmmaker #dtttcampus #virtual reality #Vr
In May we present:5 Reasons Why to Visit #DTTTCampus 2019
In short, #DTTTCampus is a full exploration into the destination experience, with valuable insights on navigating the digital landscape and the ever-changing consumer behaviour of travellers today.#dttt campus #keynote speakers #workshops #destination experience #oslo #destination marketing #Visit Oslo
In May we present:Meet…Paul Kubalek – Digital Media Manager at Saalbach Hinterglemm
Paul will be joining us at #DTTTCampus alongside a panel of other DMOs to talk about working with influencers, the story behind the ‘Storybase’ campaign and the kind of results they’ve seen since this campaign began.#influencer experiences #storybase #influencer marketing #influencer