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July 8, 2014

Online US hotel room rates rise in July compared with last year

Hotel room rates in top US hotels have marginally come down this July, compared with last month, according to the latest report from trivago and e-forecasting.com.

Hotel room rates in top US hotels have marginally come down this July, compared with last month, according to the latest report from trivago and e-forecasting.com.

Rates in the top-25 most popular US properties totalled $196.84 this July, down from $203.36 in June.

The US online average daily rate (oADR) currently ranges among the top-25 destinations from a high of $333 to a low of $93 this July.

In 2014, nearly one-half of US hotel sales are made online via brand websites and travel agent merchant websites, compared with one-fourth seven years ago, according to e-forecasting.com.

Year-over-year, the US average online ADR is up 10.3% in July compared with a year ago.

Geographically, trivago online room rates in Boston are up by 17.3% from last year, with New York rates up 1.7% and San Francisco rates up 8.4%, making these cities the three most expensive destinations in the US.

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"The latest US Monthly Hotel Forecast predicts online room rates to jump 7.2% for the whole year, the second highest annual growth rate on record after an increase of 7.4% in 2006."

On a month-over-month basis, Smoothed Seasonally Adjusted (SSA) online ADR for July 2014 is up +1.1% from the previous month, which is lower than June’s monthly change of +1.4%.

e­forecasting.com CEO Maria Sogard said: "The latest US Monthly Hotel Forecast predicts online room rates to jump 7.2% for the whole year, the second highest annual growth rate on record after an increase of 7.4% in 2006."

For US hoteliers, year-over-year profit margins posted a reading of +2.3% in June, compared with +0.5% a year ago (July 2013).

Using trivago’s online hotel room rates for the top-25 US destinations and e-forecasting.com’s city-centric hotel unit (room) cost indices, year-over-year percent change in profits per room currently range from a high of +20.7% in Seattle to a low of -1.5% in New York in July.

Overall, amongst the top-25 destinations, profits per room are up in 22 cities, and down or flat in three cities.

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