STR, the hotel industry’s leading performance data gathering and reporting agency, released its August 2014 U.S. hotel industry report with impressive year-over-year results across key performance areas:
• Occupancy: 3.8% increase to 71.6%
• Average Daily Rate (ADR): 5.4% increase to $118.49
• Revenue Per Available Room (RevPAR): 9.4% increase to $84.90
• Demand: 4.8%, or 5 million rooms, increase
• Supply Growth: 1% increase
• Group Occupancy: 2.9% increase
To provide additional context, Jan Freitag, STR’s Vice President of Strategic Development, noted, “So far this year, U.S. hotel occupancy is 66.0 percent, the strongest performance in the last 17 years. Demand is driven by the increase in travelers on business and leisure trips as well as prolonged strength in the group segment. Group occupancy increased 2.9 percent for the month and 3.3 percent year to date. These strong demand increases put hoteliers firmly in the driver’s seat with regard to pricing power. Room rates increased 5.4 percent in August, the highest rate since January 2008.”
As we have previously discussed, the entire U.S. hotel industry is surging and is firmly pointed toward even greater success in 2015. Though all the performance metrics mentioned above are important, we want to take a closer look at the increase in ADR and how hoteliers can take greater advantage of this opportunity.
Performance results show that consumer confidence has returned and travelers are willingly spending more on lodging than in recent years past. As we enter the holiday travel season, hoteliers should be excited that strong consumer demand for hotel rooms will surely dictate an even greater rise in room rates and allow for increased revenues. However, even with this opportunity on the horizon, hotels that do not have the proper tools to dynamically manage daily rates, as well as other performance metrics, will essentially be putting traveler dollars into their competitor’s pockets.
innRoad’s cloud-based property management system provides operators with four, fully integrated technologies designed specifically for optimizing hotel performance: Property Manager, Booking Engine, Global Distribution and Hotel Revenue Manager. Our Property Manger simplifies a hotel’s most critical operations, including check-in/out, inventory and billing, and our Booking Engine and Global Distribution services enhance a hotel’s online presence for premium exposure to potential guests, but it’s our Revenue Manager that keeps hoteliers in complete control of their property’s performance.
As a core component of our cloud-based property management system, our Hotel Revenue Manager provides streamlined access to key performance indicators, including ADR, RevPAR and Occupancy, so operators can keep their finger on the pulse of their business. With innRoad’s fully integrated configuration, when rates and rules are updated within the system, they are automatically pushed to the Booking Engine and connected online travel agents, such as Orbitz and Travelocity, through the Global Distribution network – eliminating multi-system logins, reducing mistakes, saving time and, most importantly, allowing operators to immediately position their properties to capitalize on strong demand for hotel inventory. And with our Access Anywhere cloud platform, operators can manage their hotel’s performance while on-the-go from anywhere with an internet connection.
To experience the power of innRoad, we are offering hoteliers a free, 14-day trial of our cloud-based property management system. Click here to register for your free trial and take the first step toward stronger operational performance and increased profitability.