SHERIDAN, WYOMING – Feb. 20, 2025 – The Q4 2024 Hospitality Group and Business Performance Index from Cendyn and Amadeus reveals a significant surge in the U.S. group business sector, reaching its highest index rating in four quarters. The overall health metric stands at an impressive 108.2% year-over-year (YOY), signaling robust growth and positive momentum.
Top Performing Markets
Several key markets across the United States have demonstrated exceptional performance in the fourth quarter. The top overall health index markets include:
- Tampa: 121.4%
- Houston: 120.6%
- Miami: 116.8%
- New York City: 112.0%
- Chicago: 111.6%
- Phoenix: 110.4%
- Detroit: 109.8%
- St. Louis: 109.6%
- San Diego: 109.6%
- New Orleans: 108.3%
Furthermore, the top growth markets specifically for group performance were:
- Houston (124%)
- Tampa (119.8%)
- New Orleans (114.1%)
- Chicago (114%)
- Detroit (113.8%)
Index Methodology and Insights
The Index is a comprehensive tool that combines event data from Knowland by Cendyn with hotel booking data from Amadeus’ Demand360 business intelligence solution. This powerful combination provides an aggregated view of the key drivers influencing hotel performance. The index reflects the "health" and performance across various segments, including group, corporate negotiated, global distribution system (GDS), and events. It also offers valuable filters for event market segments and booking industries, enabling hoteliers, destination marketing organizations, and convention and visitor bureaus to refine and adapt their strategies effectively.
Key Findings and Performance Analysis
Several key insights have emerged from the Q4 2024 Hospitality Group and Business Performance Index:
- Overall Performance: "The aggregated index reflects performance for all segments shows Q4 2024 achieved 108.2% compared to 2023. This is the highest overall index rating in four quarters, and the third consecutive quarter over 100%." This highlights the consistent and upward trend in the hospitality sector.
- Group Segment: "The Group Index was at 101.0% due to a 0.7% decrease in room nights and a 1.7% increase in ADR with nine consecutive quarters of growth." While room nights experienced a slight dip, the substantial increase in Average Daily Rate (ADR) demonstrates the strength of the group segment.
- GDS Performance: "Overall, GDS grew again this quarter with 112.3% due to a 9.8% increase in room nights and a 2.3% increase in ADR." The continued growth in the GDS segment indicates its importance in driving hotel bookings.
- Negotiated Rates: "The Negotiated Index score was 104.2% due to a 0.6% decrease in room nights and a 4.8% increase in ADR." Similar to the group segment, the negotiated segment saw a significant rise in ADR, offsetting the slight decrease in room nights.
- Events Sector: "Events were the highest segment with significant improvement over the last quarter. Volume was 115.2% of the same period last year." The events sector has shown remarkable growth, demonstrating its vital role in the overall health of the hospitality industry.
- Hotel Performance and Event Characteristics: "Hotels of all sizes in Q4 experienced growth due to the meetings and events industry. The average attendee size held steady at 127 guests. The average space used was consistent with Q3 moving slightly from 3,766 to 3,410 sq. ft." This data provides valuable insights into the characteristics of meetings and events, allowing hotels to optimize their offerings and cater to these trends.
Conclusion
The Q4 2024 Hospitality Group and Business Performance Index paints a positive picture of the U.S. group business sector. The record-high index rating, coupled with strong performances across various segments and key markets, suggests a healthy and growing industry. The insights provided by the index empower industry stakeholders to make informed decisions and capitalize on emerging trends.
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