According to the Mews Data Dive, a real-time measure of hospitality’s performance in 2023, ADR rose 6% year-over-year (YOY) to an average of $250, and RevPAR saw an increase of 9% YOY to $126.
Based on data from more than 4,000 Mews partners in 85 countries, the Mews Data Dive unpacks hospitality’s performance across 12 key areas—including occupancy; domestic travel; online check-in and upsells; direct bookings; booking lead times; rate types; ADR and RevPAR; and additional bookable services—to pinpoint how the hospitality sector is changing.
“With rising inflation across the world, it’s not surprising that ADR has risen, but it didn’t deter reservations in 2023,” said Matt Welle, CEO, Mews. “The data is another proof point that occupancy levels have more than stabilized, making for a meaningful rise in RevPAR for our customers.”
He added, “Hoteliers are becoming more creative with the amenities and spaces they offer their guests and in the last year alone, we’ve seen a significant increase in properties selling additional bookable services. While parking spots and meeting rooms have played a huge role in this, 2024 will be the year that more hoteliers revolutionize revenue management. We are beginning to see more hotels capitalizing on all available assets and offering additional spaces, from co-working desks to karaoke booths, providing remarkable guest experiences across the board.”
For the U.S. market, key findings include:
Travel has recovered and tops pre-pandemic levels. Despite the backdrop of global unrest, frequent flight disruptions and inflation, consumers didn’t pump the brakes on travel, which will likely remain a priority throughout 2024. Average occupancy in 2023 was 49.1%, a 3% increase YOY and 19% higher than 2019 levels.
Summer travel reigned supreme, and geographic trends normalized with international markets reopening for travelers from the U.S. Overall demand remained healthy into peak summer travel season. August was the best-performing month, while July saw the highest percentage of rooms occupied. While international travel continued to grow, domestic travel held strong with an almost 50:50 split.
Traveler confidence continued to grow, as non-refundable reservations and booking lead times increased. One-third (33%) of all bookings were made at least 30 days in advance, a 6% increase YOY. While men were 60% more likely to make a same-day reservation, women were more inclined to map out travel ahead of time.
Online check-ins and upgrades continue to increase. A quarter of guests continue to check-in online, and 2.2% of guests added an upgrade to their reservation while checking in, with an average upsell value of $48. Top upgrades included early check-in, parking, late checkout and pet fees. Expect more hotels to encourage online check-in and offer more features and personalized experiences to meet this increasing demand.
More hotels are accommodating the evolving needs of remote workers and bleisure travelers. One in five hotels in North America are diversifying their revenue by monetizing additional spaces (such as meeting spaces, day-use rooms, hotel desks, parking), almost a 50% increase compared to 2022. The most-used additional bookable spaces were parking spots and meeting rooms, with each parking space earning an average of $4,448 in extra revenue per year.
