Hotel Online  Special Report

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Hotels Experienced Considerable Growth in Room Nights
Booked Electronically Through the Global Distribution
Systems in Q4
Luxury Segment Room Nights Booked Electronically Grow 21%

Chicago (February 3, 2003)—TravelCLICK’s eMonitor results for the fourth quarter of 2002 show that hotels experienced considerable growth in room nights and revenue booked electronically through the Global Distribution Systems (GDS). Room nights increased 8.0%, revenue jumped 11.3%, and average daily rate (ADR) rose 3.0% compared to the fourth quarter of 2001. A key factor affecting these results was the impact of September 11th on hotel industry booking performance in the prior year period.

The strong year-over-year showing in the fourth quarter of 2002 resulted in electronic room nights for all of 2002 finishing with a slight decline of 0.9% versus 2001, while ADR was off 3.7%. This fueled a 4.5% decline in 2002 electronic revenue compared to 2001. Average length of stay for 2002 was 2.11 nights, down nominally from last year’s 2.13 nights.

eMonitor results are compiled from TravelCLICK's comprehensive database, which is the exclusive source of hotel industry electronic distribution data from the Amadeus, Galileo, SABRE, and Worldspan GDS. TravelCLICK's data also includes consumer online hotel bookings made through GDS-powered Internet travel sites.

Travel Agent Component

Travel agent bookings remained the dominant source of hotel e-commerce, representing 95% of total GDS room nights for both the fourth quarter and total year. Viewed against the fourth quarter of 2001, the travel agent component of GDS increased at a 7.9% rate in room nights and 3.2% in ADR On a year-to-date basis, travel agent room nights were down 1.4% from 2001, and average rate also decreased, off 2.5%.

Internet Component

Internet (consumer online) room nights, excluding bookings from auction sites, increased by 10.6% versus the fourth quarter of 2001. Average rate was also up for GDS powered Internet bookings by 0.6% compared to the fourth quarter of last year. The ADR of Internet bookings through the GDSs was $88.12, which was 26% lower than the ADR for travel agent bookings.

Though the Internet component displayed an increase in room nights of 4.4% over the full year of 2002, average rate was down by 5.5%. This resulted in a 1.4% decline in revenue year-over-year.
 

Fourth Quarter, 2002
 
Room Nights
% Growth
ADR
% Growth
Total GDS Hotel e-Commerce
23,287,618
8.0%
$117.56
3.0%
Travel Agent Component
22,185,008
7.9%
$119.03
3.2%
Consumer Internet Component
1,102,610
10.6%
$ 88.12
0.6%
Total Year 2002
 
Room Nights
% Growth
ADR
% Growth
Total GDS Hotel e-Commerce
98,018,037
-0.9%
$116.76
-3.7%
Travel Agent Component
92,872,508
-1.4%
$118.68
-2.5%
Consumer Internet Component
5,145,529
4.4%
$ 89.81
-5.5%

Performance by GDS

Results by GDS for the full year 2002 are shown below. Amadeus was the only GDS to post an increase in both room-nights booked and ADR.

Total Year 2002

GDS
Room Nights
% Growth
ADR
% Growth
Amadeus
9,646,948
3.8%
$124.23
4.9%
Galileo
27,951,898
-5.5%
$120.54
-3.3%
SABRE
43,972,163
-1.4%
$121.32
-3.8%
Worldspan
16,447,028
6.6%
$93.74
-8.2%

Performance by Market Segment

Results for the fourth quarter by hospitality industry market segment are shown below. Compared against the fourth quarter of 2001, all segments posted increases in room nights and average rate. 

Fourth Quarter 2002

Market Segment
Room Nights
% Growth
ADR
% Growth
Luxury
554,753
21.0%
$283.29
6.8%
Upscale
8,301,554
7.3%
$140.65
0.9%
Mid-scale
8,852,047
5.3%
$92.18
2.4%
Economy
1,715,671
2.8%
$63.28
1.3%

Results for the full year 2002 by industry market segment are shown below. All segments except Luxury posted a decrease in room nights from 2001. All segments displayed a decline in average rate. Because of strong room night growth, the Luxury segment was the only category that posted an increase on a revenue basis, with revenues up 7.1% over last year. 

Total Year 2002

Market Segment
Room Nights
% Growth
ADR
% Growth
Luxury
2,203,190
9.0%
$277.30
-1.7%
Upscale
34,773,890
-0.4%
$140.34
-6.5%
Mid-scale
37,719,140
-2.1%
$92.74
-2.9%
Economy
7,765,796
-5.1%
$65.12
-3.6%

"The Luxury category demonstrated strength all year long in electronic bookings," said Mainzer. "With the fourth quarter increases in ADR for all segments, the results show that the GDS is maintaining its importance as a higher yielding source of business for the hospitality industry."

Top Destination Markets for Q4 - 2002
Based on total GDS room nights:
 

Market
Room Nights
% Growth
ADR
% Growth
New York
1,223,250
13.4%
$203.92
4.7%
Los Angeles
842,573
8.1%
$119.09
0.3%
SF/San Jose/Oak
803,639
4.9%
$138.67
-5.8%
Wash., D.C./Baltimore
755,350
3.9%
$135.64
4.6%
Chicago
703,915
2.2%
$128.64
-1.4%

To receive a free listing of fourth quarter results by top 50 cities worldwide in electronic bookings, please e-mail emonitor@travelclick.net.

About TravelCLICK 
TravelCLICK (www.travelclick.net) is the leading provider of solutions that help hotels and other travel industry suppliers maximize net revenue from electronic distribution channels. TravelCLICK's competitive benchmarking reports provide hotels with price and booking performance information unavailable through any other source. The company's exclusive electronic marketing networks allow hotels and other travel related suppliers to target promotional messages to specific travel agents, consumers, and group meeting planners when they are booking travel. Established in 1996 and headquartered in the Chicago area, TravelCLICK operates in more than 140 countries around the world. The company has over 6,000 clients, including national and international companies such as Accor, Air France, Avis, Best Western International, British Airways, Choice Hotels, Fairmont Hotels & Resorts, Four Seasons Hotels & Resorts, Grupo Posadas, Hilton Hotels Corporation, Hyatt Hotels & Resorts, Kempinski Hotels & Resorts, Leading Hotels of the World, Loews Hotels, Lufthansa, Marriott International, The Peninsula Group, Radisson, The Ritz-Carlton Hotel Company, SAS, The Savoy Group, Shangri-La Hotels, Sol Melia, Starwood Hotels & Resorts, Thistle Hotels, USAirways, Virgin Atlantic and Wyndham Hotels & Resorts. 


 
Contact:
Kristina Paider
TravelCLICK
847/585-5238
kpaider@travelclick.net


 
Also See: Electronic Bookings for Worldwide Hotel Industry Show Improvement - TravelCLICK Issues Third Quarter eMonitor / November 2002
Report on Electronic Bookings for Worldwide Hotel Industry Shows Luxury Segment Leads the Way to HotelRecovery in Q2 / TravelCLICK Issues Second Quarter eMonitor / Aug 2002
Room Nights Booked Electronically Down 10% from the First Quarter of 2001, Revenue Off 18% / eMonitor / June 2002
Worldwide Hotel Room Nights Booked Electronically Through the Global Distribution Systems Down 12% Versus 4th Qtr Last Year / eMonitor / Feb 2002


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