News for the Hospitality Executive |
SCOTTSDALE,
DALLAS and LONDON (July 28, 2010) –
Hotel average daily rates (ADR) in both corporate and leisure travel
are, for
the first time since the downturn, remaining steady or growing
according to
July’s The
Pegasus View from Pegasus
Solutions. The report, drawn from billions of transactions for
nearly
100,000 Pegasus customers worldwide, indicates hoteliers, even in
leisure
markets, are no longer feeling they have to trade deep ADR discounts
for
reasonable occupancy. Global distribution system (GDS) bookings worldwide realized a year-on-year increase of +6.3% in ADR, while this same figure for GDS bookings outside North America actually edged out May for the highest ADR growth year-to-date at +7.5% over 2009. Similarly, as the pace of booking volumes eased from May levels for the alternative distribution systems (ADS), ADR for the channel compared to the prior year did not budge. “The combined global revenue for the GDS and ADS in June was up nearly 30 percent over the prior year,” said Mike Kistner, chief executive officer of Pegasus Solutions. “It’s clear to us that demand is increasing and room supply growth is slowing – the formula for higher occupancy, ADR and revenue. This month, however, we’re most pleased to see evidence that hotels are harnessing the value of strategic pricing. The end of the rate nosedive, especially in the leisure sector, and as evidenced by Marriott’s recent announcement to boost corporate rates, shows hoteliers are capitalizing on their worth, which will be imperative to a full recovery.” June GDS bookings were +23.5% higher than the prior year, making it the third consecutive month this year to experience double-digit growth through the channel. These gains in bookings also eclipsed comparative figures for 2008 and 2007 by more than +43%. Another encouraging GDS trend was a growing length of stay, indicating an easing of corporate travel budgets. Other positive data included a slight length of stay increase for the global ADS. The channel is still exhibiting signs of bargain-shopping with the average look-to-book ratio climbing approximately +50% over 2009 for the second month in a row. However, ADR did not retreat on a global level, and for markets outside North America actually increased slightly, helping support a revenue increase of +20.8% from a bookings increase of +20.1%. July’s The Pegasus View, which is the only industry report that reports on both GDS and ADS transactions, also contains a breakdown of bookings, ADR and revenue for additional regions not previously reported on, including South America, Europe, and Africa/Asia/Oceania. The report 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 GDS (Amadeus, Galileo, Sabre, and Worldspan) and ADS channels. About Pegasus Solutions Inc. – Proud honoree of the 2010 CIO 100 awards 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 nearly 100,000 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 more than 9,000 member hotels in 146 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. |
Contacts: Media contact: Ariel Herr |