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The Pegasus View June 2010:
International GDS Bookings Deliver Highest Average Daily Rate
Increase for 2010 at +7.5% over 2009

 
Hoteliers Harness Strategic Pricing to Bolster Revenues from Bookings Growth

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.

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Contacts:

Media contact: 
Ariel Herr
+1(214)890-7912
aherr@fortepr.com 
                                                                                                                                   
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Also See: Utell® Hotels & Resorts Adds Two Scenic Monterey Peninsula Hotels; Monarch Resort and Magic Carpet Lodge Offer Value and Countless Attractions in Sought-after U.S. Destination and Golf Mecca / July 2010

The Pegasus View May 2010: Bookings Growth Translates to Expected Revenue Increases of +30% Through September, Double-digit growth in booking volumes evidenced for both GDS and ADS / June 2010

Pegasus Solutions Presents HFTP ProLinks Webinar on Distribution; Pre-HITEC Session Explores Ways Hotels are Shopped Online / June 2010

Pegasus Solutions Recognized by CIO Magazine as one of 2010 CIO 100 Award Honorees; Global leader represents only hospitality technology provider on prestigious list / June 2010

The Pegasus View April 2010: Global GDS Revenue Rises 34.3% Over 2009; Booking Volume Increase of 27.4% and Growth in ADR of 5.5% Reconfirm Business Travel Recovery / May 2010

The Pegasus View Special Edition: Pegasus Solutions Issues a Special Report on the Impact of the Icelandic Volcano Eruptions on European Hotel Volumes - Out of the Ashes of Eyjafjallajokull Comes Brief Benefit to Hotels As European Net Revenue Explodes as High as 120% over 2009 / May 2010

The Pegasus View March 2010: Future Bookings through GDS are Up Five of Next Six Months, Confidence in Hotel Demand Turns a Corner; GDS and ADS bookings for Q1 2010 outpace comparable periods for 2009, 2008 and 2007 / May 2010

New York’s St Giles Hotel - The Tuscany and St Giles Hotel - The Court Choose Utell® Hotels & Resorts; Two Former Starwood W Hotels in Manhattan Opt for Pegasus Representation / April 2010

Fastest-growing Select Service Brand, La Quinta Inns & Suites, Extends and Expands Relationship with Pegasus Solutions; Three-year contract renewal includes evolution to RezView® NG and global commission processing services / April 2010

The Pegasus View February 2010: Business Travel Recovery Indicated by Hotel Booking Volumes, Net Revenue and Average Daily Rates; North America business travel booking volumes show strong performance while other regions return increases in length of stay and average daily rates / March 2010

Marriott International Adds Two Brands to Pegasus Solutions’ Global Commission Processing; Marriott ExecuStay and Autograph Collection Hotels and Resorts Included in Contract Expansion / March 2010

Proven MarketVision Hotel Competitive Intelligence Platform from Pegasus Solutions Yields Significant Returns for Hotels; Launched a year ago, properties worldwide realize revenue-driven results / March 2010

Utell® Hotels & Resorts Celebrates 80 Years of Innovation; World’s Leading Hotel Representation Service Marks Unprecedented Anniversary with Distinguished Additions to International Portfolio / March 2010

The Pegasus View January 2010: Leisure Travelers Regain Confidence, Boosting Booking Volumes Beyond 2009, 2008 and 2007 Levels / March 2010

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 / January 2010

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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