Group business shows most significant improvement at 102 percent of the same period in 2019
ARLINGTON, Va. — Aug. 1, 2023 — Knowland, the world’s leading provider of data-as-a-service insights on meetings and events for hospitality, and Amadeus, a global leader in hospitality technology, today present the metrics from the companies’ Hospitality Group and Business Performance Index, for the second quarter of this year. The Index, which combines event data from Knowland with hotel booking data from Amadeus to give both individual and aggregate views of the key drivers of hotel performance, was first launched in June and is updated on a quarterly basis.
With its 2Q 2023 data release, the Index now includes data for the Top 25 U.S. Markets. This quarter’s data shows that fourteen of the top markets have fully recovered group revenue in comparison to the same time in 2019. The recovered group markets (with percent of 2019 revenue) include:
- Miami – 115 percent
- Tampa – 114 percent
- Orlando – 113 percent
- Phoenix – 112 percent
- Dallas – 108 percent
- Houston – 107 percent
- San Antonio – 105 percent
- Denver – 105 percent
- San Diego – 104 percent
- New Orleans – 103 percent
- Washington DC – 101 percent
- St. Louis – 101 percent
- Los Angeles – 101 percent
- Austin – 100 percent
Key insights from the 2Q 2023 Index are as follows:
- Group business leads recovery – Group business continues to lead in recovery as Q2 2023 is at 102 percent of Q2 2019 levels, driven by a nearly 11 percent increase in Average Daily Rate (ADR) while room nights are lagging 8 percent behind Q2 2019 levels.
- Meetings and events provide a stabilizing revenue base – Supported by increased rates, both actualized group room revenue and event activity increased slightly in 2Q 2023 compared to 1Q 2023. This continues an overall trend of increases in group business since early 2022, providing a strong basis for optimism in terms of forward-looking occupancy and revenue in 2H 2023 and 1H 2024 as hotels build on the foundation of group business booked further in advance while identifying opportunities to capture shorter term transient demand.
- Corporate meetings significantly outperform other segments – Corporate meetings and events accounted for 62 percent of events held during the second quarter with Health Care, Technology and Training/Education as the top volume industry segments.
Launched in June, the Index was designed to help hotel sales teams and operators identify the top markets driving group business, enabling hotel sales teams to strategically target these markets and drive increased sales.
The Index compares figures quarterly to same-time performance before the pandemic in 2019, rolling up the data to score the overall ‘health’ of the industry. The Index also includes filters to view top event market segments and industries booking group events, allowing hoteliers, DMOs and CVBs to closely track trends and adapt their business strategies accordingly.
ABOUT THE HOSPITALITY GROUP & BUSINESS PERFORMANCE INDEX METHODOLOGY
The Hospitality Group & Business Performance Index uses a multi-factor weighting system that balances metrics such as group, corporate transient, and GDS room nights with average daily rate (ADR) performance. Growth or declines in ADR can offset room night performance. Each factor is averaged to provide a final index score, ensuring a more accurate overall performance assessment.
Knowland is the world’s leading provider of data-as-a-service insights on meetings and events for hospitality. With the industry’s largest historical database of actualized events, thousands of customers trust Knowland to sell group smarter and maximize their revenue. Knowland operates globally and is headquartered just outside Washington, DC. To learn more about our solutions, visit www.knowland.com or follow us on Twitter @knowlandgroup.