Hotel Occupancy To Rise in 2015

Hotel Occupancy is looking up

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According to a recent report by PKF Hospitality Research, 2015 is shaping up to be a good year for U.S. hotels, with hotel occupancy rising even though hotel rates will also go up. And that means it will also be a good year for travel agents booking hotels.

Hotels are often overlooked by travel agents or at least relegated to a low level of priority. After all, what’s a $150 hotel booking next to a $5,000 cruise booking?

But those hotel bookings have a way of adding up. Hotels also have the potential to become a nice little sub-specialty. Family reunions, weddings, business meetings, conferences and expos all offer opportunities to make multiple bookings at once.

Hotel occupancy will rise at Fairmont Hotels

Credit: Fairmont Hotels

And if you are working through a host agency, I know a simple way to increase your hotel commissions by 42 percent, maybe more.

In short, there are good reasons to pay attention to what’s happening with hotel occupancy.

‘Booking Hotels’ Module 2, Chapter 3

Students of the Home-Based Travel Agent Success Course get some sound advice
on booking hotels. How to get the best rate, how to make the sale, the most
efficient ways to book, how to increase your commissions. And more.

Click here to access your course.

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So what does the PFK report reveal? The major results are summarized in this chart.

Hotel occupancy chart by PKF

Credit: PKF Hospitality Research

The increase in hotel occupancy (1.9 percent) may seem modest, but look at the ADR! A 5.3 percent rise in the price of a room is significant – and it’s not dampening demand! If your hotel commission income were to ride by the same amount, it would have a noticeable affect on your bottom line.

Even if you find both figures less than spectacular, it’s worth noting that this represents an all time high for the hotel industry.

There is a fuller discussion of PKF’s findings. It’s on the technical side, but if you’re curious, you will find it here.

Hotel Occupancy To Rise in 2015 was last modified: October 22nd, 2015 by Kelly Monaghan