ARLINGTON, Virginia—Knowland and Amadeus introduced metrics from the businesses’ Hospitality Group and Enterprise Efficiency Index. For the second quarter of 2024, the Index exhibits general well being of 105.5 p.c year-over-year (YOY.) That is the primary time the general Index has exceeded one hundred pc, reflecting continued trade well being throughout all reported indices. As well as, 22 of the highest 25 U.S. markets have achieved one hundred pc or extra in general efficiency in comparison with the identical time in 2023.
- Las Vegas, Nevada | 117.9 p.c
- Seattle, Washington | 117.6 p.c
- Nashville, Tennesee | 114.2 p.c
- Detroit, Michigan | 110.2 p.c
- Houston, Texas | 108.9 p.c
- Miami, Florida | 108.2 p.c
- Washington, D.C. | 108.0 p.c
- Philadelphia, Pennsylvania | 107.4 p.c
- Tampa, Florida | 107.0 p.c
- New York Metropolis, New York | 106.6 p.c
- Dallas, Texas | 106.2 p.c
- San Francisco, California | 105.9 p.c
- Boston, Massachusetts | 105.6 p.c
- Phoenix, Arizona | 104.5 p.c
- Denver, Colorado | 104.4 p.c
- Minneapolis, Minnesota | 104.3 p.c
- San Diego, California | 103.9 p.c
- Chicago, Illinois | 103.8 p.c
- Atlanta, Georgia | 103.7 p.c
- St. Louis, Missouri | 103.6 p.c
- San Antonio, Texas | 102.9 p.c
- Austin, Texas | 102.7 p.c
Whereas these have been the highest development markets general, 21 of the highest 25 markets achieved one hundred pc or extra development within the group section for Q2 2024 in comparison with the identical interval final yr. This displays continued development for seven consecutive quarters. The highest group development markets have been Las Vegas, Nevada (125.7 p.c); Detroit, Michigan (122.2 p.c); and Seattle, Washington (117.8 p.c).
The Index combines occasion information from the Knowland platform with lodge reserving information from Amadeus’ Demand360 enterprise intelligence answer to supply combination views of the drivers of lodge efficiency. The aggregated index displays efficiency or “well being” for all segments—group, company negotiated, international distribution system (GDS), and occasions. It gives filters for occasion market segments and reserving industries, empowering hoteliers, locations, and conference and customer bureaus to adapt methods successfully.
Key insights from the Index are as follows:
- Sturdy group development with Northeast and Midwest areas main the cost. The Group Index has achieved seven consecutive quarters of year-over-year development, reaching 108 p.c. This consists of 103.4 p.c of final yr’s room nights and a 4.4 p.c enhance within the common day by day charge. The Northeast and Midwest areas have been standout performers, experiencing double-digit development in group nights.
- Efficiency of oblique distribution rallies past 2023 ranges, main all segments in development. The GDS Index scored 112 p.c general, with room evening manufacturing at 109.1 p.c final yr and a 2.4 p.c enhance in common day by day charge (ADR). Essentially the most vital development in GDS room nights booked occurred within the Northeastern area, with New Jersey, Maine, and Rhode Island experiencing greater than 25 p.c YOY development.
- Negotiated efficiency stays secure in comparison with final yr. The Negotiated Index rating was 102 p.c with 98.5 p.c of the 2023 room nights and a 3.8 p.c enhance in ADR. Eighteen of the highest 25 markets achieved one hundred pc or extra versus the identical interval final yr.
- Occasion quantity is regular as conferences get greater. Occasions remained constant in 2024 in comparison with 2023. With the discount of one-day conferences, a few of these occasions have been moved to multi-day occasions which may be held much less regularly. Development continues within the high 25 markets, which proceed to draw occasions with their versatility and vary of experiences. Nevertheless, the upper ADR for these markets ($229/evening in Q2) could have prompted a share of occasions to transition to non-top 25 markets, which averaged $185/evening in Q2.
- Conferences proceed to supply stability for accommodations after the 2023 increase yr. The typical attendee measurement held regular at 145 company. Nashville rose to 131.6 p.c, Detroit was 120.3 p.c, and Miami was 113.7 p.c. Eleven of the highest 25 markets achieved one hundred pc or extra for Q2 2024 versus the identical interval final yr. The typical house used was according to Q1 transferring barely from 3,981 to 4,025 sq. ft.
- The normalization of enterprise segments is obvious. The great well being index has demonstrated enchancment, rising from 99.9 p.c in Q1 2024 to 105.5 in Q2 2024, indicating consistency and robustness throughout all sectors as natural development good points prominence.
