Increases › Committed occupancy for the remainder of 2012 is up 5.4 percent, and average daily rate (ADR) is up 5 percent. Growth is driven by individual business and leisure travelers, with an occupancy increase of 5.6 percent and an ADR increase of 5.5 percent in comparison to the same time last year. › For the upcoming three quarters (to July 2013), committed occupancy is up 3.9 percent and ADR is up 4.3 percent, based on reservations on the books in comparison to the previous year. Occupancy growth is driven by the group segment with an increase of 4.6 percent, while the transient seg- ment shows an increase of 3 percent. However, the transient segment leads the increase in ADR — up 5.3 percent compared to 2 percent for the group segment.
SOURCE: August 2012 TravelClick North American Hospitality Review, travelclick.com
Demand and Average Daily Rate
U.S. Hotel Fees and Surcharges
› U.S. hotels will collect an estimated $1.95 billion in revenue this year from fees and surcharges, compared to $1.85 billion last year. › Common charges include resort or amenity fees, early departure fees, early reservation-cancellation fees, Internet fees, phone-call surcharges, business- center fees (charges for receiving faxes and sending/receiving overnight packages), room-service delivery surcharges, minibar-restocking fees, charges for in-room safes, and auto- matic gratuities and surcharges.
SOURCE: Bjorn Hanson, divisional dean at the Preston Robert Tisch Center for Hospitality, Tourism and Sports Management at New York University, convn.org/hanson-surcharges
Capital Expenditures on the Upswing
The U.S. forecast for 2013 is for capital expenditures of approximately $5 billion, a 33-percent increase over 2011’s $3.75 billion — but still 10
percent below the $5.5 billion in capital expenditures for U.S. hotels in 2008. The forecast reflects several factors, including that occupancy will recover to its highest level since 2007, and that average daily rate will increase the most since 2007. Capital expenditures do not include spending for hotel expansions or major changes, but include improved guest amenities and services, such as: › in-room iPads › guest-room design, including work- spaces, radio-alarm clocks, and sound systems (many are MP3 compatible), seating, bathrooms, and lighting › beds and bedding
› high-speed Internet access › flat-screen TVs › in-room amenities including irons/ ironing boards, and coffee makers › guest services and conveniences, including enhanced complimentary breakfasts, check-in/check-out kiosks, and expanded business centers › redesigned lobbies › reconceptualized restaurants, to appeal to Gen-Xers and Millennials › added or enhanced fitness facilities › added or enhanced technology for meeting rooms and ballrooms.
SOURCE: scps.nyu.edu NOVEMBER 2012 PCMA CONVENE 59