According to data in The Pegasus View by Pegasus
Solutions, hotel ADR continued a northward trend in April 2012,
realizing record or near-record growth margins over rates paid in
North American corporate hotel rates set a new year-on-year
growth record, increasing +9.3% over 2011, beating a previous
record of +7.1% set in February by more than two percentage
Global rates for hotels booked through the
global distribution systems (GDS), representing mostly business
travel transactions, grew +5.5%, the greatest growth margin since
Leisure rates also soared as global bookings made
through online channels increased by +9.1% over April 2011, and
North American rates rose +7.3%.
“A common misstep
many hotels made in 2001 and 2008 when bookings fell was to
automatically abandon strategy and slash rates,” said Mike Kistner,
chief executive officer of Pegasus Solutions. “April’s numbers
show that corporate rates paid in April 2012 were higher than four
of the five previous years, and just shy of three percentage
points of those paid in 2008. Hotels are staying true to their
product, not only maintaining rates, but also driving them back to
where they need to be. Combined with bookings growth, this rate
growth has corporate revenue up by double digits over all five
Following a drop in March of
-7.5%, global corporate bookings rebounded to just -0.5% off of
2011 in April. If not for February’s extra day, April would have
represented the global corporate sector’s best booking performance
against prior year for 2012 thus far.
North America’s business
bookings made similar progress, coming within -5.8% of prior year
in April after falling -9.0% from last year in March.
reservations also improved from March losses. The global gap
against the year before was narrowed from -7.9% in March to -6.4% in
April; likewise, North America moved from a -9.0% slide in March
to a -7.9% shortfall in April.
summer corporate bookings are proceeding unevenly with the potential
for greater growth in June and August expected, while rates should continue
with steady increases. Leisure bookings are expected to hover near summer
2011 levels with ADR likely to drive revenue growth.
Data reported in The Pegasus View
comes from billions of transactions processed monthly by Pegasus
Solutions facilitating more than $16 billion a year in hotel
transactions. It reflects data drawn
from both GDS and ADS transactions, representing the business and
leisure markets respectively for nearly 100,000 hotels worldwide.
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