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The Pegasus View December 2009:
Bookings in Both GDS and ADS Exceed 2008 and 2007 Volume


With +15.35% Increase in GDS and +22.49% Jump in ADS Net Bookings Over 2007,
Report Highlights Importance of Raising Rates Lowered to Drive Demand in 2009


SCOTTSDALE, DALLAS and LONDON (January 28, 2010) – Pegasus Solutions has issued The Pegasus View for December 2009, which is the only industry report that draws from both global distribution system (GDS) and alternative distribution system (ADS) booking data. Based on the four billion transactions Pegasus processed during the month for more than 95,000 hotel distribution customers worldwide, December’s The Pegasus View evidences a positive conclusion to 2009 as both GDS and ADS net bookings were higher than 2007 and 2008 levels.
 
December GDS booking volumes, which predominantly represent business travel, increased +15.35% over 2007 and +6.28% over 2008; while ADS booking volumes, which predominantly represent leisure travel, jumped  +22.49% over 2007 and +17.18% over 2008. In light of this recovery in booking volumes, the report highlights the importance of raising rates lowered in 2009 to drive demand, drawing parallels to the post-2001 recovery.
 
“Following a year that started with booking volumes significantly down, the meteoric rise in the latter half of the year to levels in both channels that exceeded even 2007 serves as validation that the recovery evidenced in previous editions of The Pegasus View is in fact occurring,” said Mike Kistner, chief executive officer of Pegasus Solutions. “Many hoteliers find themselves again in the position of developing the most effective strategies to increase rates to a normalized level, which we address with observations and recommendations in this month’s report.”
 
The year started with average daily rate (ADR) down in both channels, leading to a resultant fall in net revenue. ADR climbed close to 2008 levels in the GDS as the year continued, leading to positive revenue movement of +5.34% for the second straight month year-on-year. However, a colossal increase in bargain-hunting and online shopping through the ADS left 2009 net revenue for the channel -21.92% below 2008 year-end.
 
Look-to-book ratios for the ADS continued to climb, growing +17.8% in December 2009 versus December 2008, and +54.7% over October 2008. This indicator relates directly to the rise in ADS booking volumes, as well as the channels’ depressed ADR. Current indications are that look-to-books will continue to rise as travelers become increasingly rate conscious and savvy.
 
“We’re enthused to see positive movement in booking volumes and ADR, but the rising look-to-books portends more pressure on technology infrastructure for travel suppliers. Not only does this competitive shopping environment require an aggressive dynamic rate strategy, but the ability to also handle the immense number of rate and availability requests to your system,” added Kistner. “Rate and technology providers will need to ensure they are capable of returning the high volume of requests in the expected time, which some studies say is as little as two seconds.”
 
Beginning with this month’s edition, The Pegasus View will base aggregated ADR and revenue data on a single constant exchange rate, which more accurately reflects local, regional and summary movements in each currency.
 
The Pegasus View for December 2009 is available in its entirety online and by free subscription at www.pegs.com. Data reported in The Pegasus View comes from Pegasus Solutions, the world’s single largest global processor of hotel transactions through the four GDSs and ADSs.

About Pegasus Solutions Inc
Pegasus is proud to celebrate 20 years of providing innovative solutions to hotels and agents around the globe.

Pegasus Solutions is the world’s leading provider of technology and services to hotels and travel distributors, supplying the award-winning RezView® NG central reservation system, electronic distribution services, advanced agency commission processing and payment services, and hotel marketing representation services. Founded in 1989, Pegasus created and launched the hotel switch, and today its customers include more than 95,000 properties around the globe as well as a majority of the world’s travel agencies. Additionally, Pegasus’ powerful representation arm incorporates Utell® Hotels & Resorts and Utell Connect, services that have been chosen by nearly 11,000 member hotels in more than 130 countries, making Pegasus the hotel industry’s largest third-party marketing, sales and reservations specialist. Pegasus also powers the niche consumer Web site www.hotelbook.com™, dedicated to promoting independent and boutique hotels throughout the world. Headquartered in Dallas, Pegasus has 18 offices in 11 countries, including regional hubs in London, Singapore and Scottsdale, Arizona. For more information, please visit www.pegs.com or www.utell.com.


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Contacts:

U.S. media contact: 
Ariel Herr
+1(214)890-7912
aherr@fortepr.com 
                                                                                                                                   
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Also See: Pegasus Solutions Announces Successful Debt Restructuring; Strategic Move Positions Company for Additional Growth / January 2010

Pegasus Solutions Aligns and Expands Management Team for Targeted Growth in 2010; Appointments Reinforce CEO’s Corporate Vision and Dedication to Product Innovation / January 2010

InfoWorld Names Pegasus Solutions’ RezView® NG Among Top IT Projects of 2009; Next generation CRS represents only hospitality technology solution on revered list / January 2010

The Pegasus View November 2009: ADS and GDS Channels Experience Positive Year-on-Year Net Revenue Growth for First Time this Year; +13.28% Increase in GDS Net Revenue and +2.09% Jump in ADS Net Revenue Beat 2008 Figures, but Numbers Still Fall Short of 2007 Levels / December 2009

The Pegasus View October 2009: Report Shows Bookings and Net Revenue Figures Climbing Back to 2008 Levels; North America’s Corporate Bookings Jump +3.5% in October 2009 vs. October 2008 and Leisure Bookings Offset Dwindling ADR with +21% Increase for the Same Period / November 2009

HP and Technology Service Provider Pegasus Solutions to Collaborate on Travel Technology / November 2009

Warwick International Hotels Renews Contract with Utell® and Selects Pegasus Solutions’ NetBooker® NG Enhanced Internet booking engine will drive online bookings directly to 27 Warwick Hotels and Resorts worldwide / October 2009

The Pegasus View September 2009 Reports GDS Average Daily Rate Reaches High Point; GDS Reservations Up By +7% in September 2009 Compared to September 2007, While Overall Booking Lead Times Across All Channels Remain Short / October 2009

Pegasus Solutions’ August 2009 The Pegasus View Shows Largest 2009 Single Month Increase in Leisure Bookings / September 2009

Pegasus Solutions and VFM Leonardo Form Strategic Partnership; Pegasus Chooses VFM Leonardo's VScape® Digital Asset Management System to Power All Visual Content for ODD and Content Hub / June 2009

Utell® Hotels & Resorts Signs Up Hundreds of New Members in 2009, Around the Globe, 471 Hotels from
65 Countries Have Selected Utell Since the Beginning of the Year / June 2009

Pegasus Solutions Teams with Rubicon to Launch New MarketVision Competitive Intelligence Reporting: Visit HITEC Booth #1054 or twitter.com/pegexec, Hotel Users Switch to MarketVision to Take Advantage of Pre-eminent Market Intelligence / June 2009
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