Leisure travel average daily rate (ADR) has
shown positive growth for the first time globally since the
recession hit, increasing just over +1%, according to July’s The
Pegasus View from Pegasus Solutions.
The monthly report, issued on the first
anniversary of the inaugural The Pegasus View, draws data from
billions of transactions processed by Pegasus, one of the world’s largest
processors of electronic hotel transactions for nearly
100,000 hotel customers worldwide.
demand, July 2010’s The Pegasus View
also indicates leisure bookings – those made online / through
alternative distribution systems (ADS) – entered double-digit
growth territory with an increase of more than +10% over last
year. Together, the increase in booking volume and ADR helped
revenue realize double-digit growth of nearly +12% over 2009.
“We were pleased to see the look-to-book ratio in the
ADS slow its growth during July from the +50% we saw in May and
June to +35%,” said Mike Kistner, chief
executive officer of Pegasus Solutions. “Have leisure travelers
stopped shopping for the best value? Certainly not, but they’re
definitely more willing to buy. This is evidenced not only by
diminished growth of the look-to-book ratio, but also by the very
encouraging ADR, revenue and length of stay growth we saw in the
ADS channel. As corporate travel has led the recovery, hotels need
to make sure they haven’t forgotten how to woo the consumer. As we
see it, they’re back too.”
Around the world, the
ADS channel returned similarly positive results, with South
America showing the highest revenue increase over prior year of
+62.7%, and North America the smallest of +8.2%. Europe ADS
revenue grew +29%, while Africa/Asia/Oceania by +23.7%.
Global corporate bookings – those made through the Global
Distribution Systems (GDS) – continued a double-digit growth
streak with July up +24.5% over 2009. This volume is expected to
continue increasing through the rest of the year at an average
monthly pace of +30%, which, combined with an expected ongoing
increase in ADR for the channel, will lead to estimated revenue
growth of about +40% each month through the end of 2010.
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