New data from hospitality cloud provider Mews has measured the US hotel industry’s performance during June, July, and August 2023, finding a trend in upselling.
The report compares 2023 hotel data to summer 2022 to pinpoint changes and looks at five key areas: occupancy, ADR and RevPAR, online check-ins and upselling, and additional bookable spaces.
What are trends in the North American hotel market?
Travel continues to move in a positive trend. The average hotel occupancy for summer 2023 was 62%, up 5% YOY. June was the best-performing month, while August saw the highest percentage of rooms occupied.
Notably, increased rates didn’t deter consumers from travelling this summer. ADR and RevPAR saw clear, positive movement despite little change in occupancy.
ADR rose 9% YOY ($25) to an average of $294, in part due to inflation among other factors. RevPAR saw a significant increase of 14% YOY ($22) to $178, including on average $30 higher in June YOY.
Travellers continue to embrace the convenience and instant gratification of online check-in and upgrades. While the number of guests utilising online check-in remained relatively the same YOY (nearly 20%), more guests upgraded their reservations via online check-in.
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Hotel upselling increased 31% YOY to $51 per upgrade. Top upgrades include early check-in, pet fees, late check-out, breakfast, and drinks or food upon arrival.
Non-room revenue is proving to be an excellent diversification strategy. Nearly 20% of hotels in North America are selling additional bookable spaces to day guests and visitors (such as parking lots and meeting rooms), a 69% increase YOY, with average revenue generated per space increasing 22% YOY (an average of $362 extra per reservation). Monthly additional bookable service revenue more than doubled YOY.
According to hotel industry experts, maintaining rates can lead to reduced operating expenses, even at lower occupancy levels.