For Q1 2017, Expedia data shows independents continued to excel on ADR growth versus branded properties, and in addition, travelers spent more per night at independent hotels than at branded properties during the time. Independent properties not only averaged higher ADRs than branded properties, but the ADR growth for independents has also doubled the pace of branded ADRs since Q1 2014.
Expedia data showed the top volume destinations for independents, based on room nights, in Q1 2017 were Las Vegas, Manhattan, Miami, Orlando and Los Angeles. These markets reveal trends in independent growth:
- Las Vegas independent properties saw fast-growing ADRs up more than 10% year-over-year (YOY), driven by international customers, who have a 25% higher ADR versus domestic travelers.
- Manhattan similarly paced well in ADRs, with average prices up low single digits YOY, while branded properties saw a low single digits decline in prices.
- Miami properties saw a notable decline in cancellation rates (more than 10% YOY), and hoteliers filled rooms well in advance of stays, with an average booking window of almost 30 days.
- Orlando also saw an increase in booking window average, along with a decline in cancellation rates of 5% YOY.
- Los Angeles independents showed ADR growth of more than 5%, which is more than double that of branded properties.
Independents grow in small markets, too
Smaller markets are also growing for independents. Top growing independent destinations for Q1 2017, with a minimum of 5,000 room night stays, were:
- Central Valley North, California – an increase of nearly 110% YOY
- Rochester, Minnesota – up just around 80% YOY
- Prescott, Arizona – up nearly 75% YOY
- Kauai, Hawaii – an almost 65% increase YOY
- Charlottesville, Virginia – up just around 65% YOY
International appeal
Independent properties also attract travelers from around the world, a trend that is likely attributable to global marketplace accessibility. For top volume markets, with the exception of Las Vegas, independents had equal or greater share of international visitors than branded properties in Q1 2017.
For top volume U.S. markets, independent properties have seen a surge in business from Switzerland (nearly 50% growth YOY), Israel (up almost 25% YOY), Canada (up nearly 20%), Netherlands (more than 15% growth), and Finland (up more than 10%), with the EMEA region bringing in a greater than 40% share of inbound business.
More data on markets growing international business:
- Las Vegas: More than 15% of travelers for independents come from international markets, with Canada, U.K., South Korea, Japan and Germany leading.
- Manhattan: Nearly 35% are international travelers, with top five markets being U.K., Canada, Germany, Japan and Australia.
- Miami: More than 25% of visitors are coming internationally, led by Canada, Brazil, Sweden, Germany and U.K.
- Orlando: 20% of independent guests are international, with Brazil, Canada, U.K., Sweden and Japan leading the charge.
- Los Angeles: International travelers also make up nearly 20% for this market, led by Canada, Japan, Australia, South Korea and U.K.
Independents attract mobile-savvy
One perhaps unexpected insight from Expedia’s research: mobile share of room nights grew roughly 15% YOY for independent properties in Q1 2017, with volume growth via mobile up nearly 25% YOY. Mobile demand growth for independents YOY in Q1 2017 outpaced branded in four of the five top volume markets:
- Las Vegas: 25% growth for independents; 15% for branded
- Orlando: just over 25% growth for independents; nearly 10% for branded
- Los Angeles: just over 25% growth for independents; 35% for branded
- Manhattan: just over 10% growth for independents; nearly 10% for branded
- Miami: just over 25% growth for independents; nearly 25% for branded