Consistent ADR Growth for Leisure Hotel Stays in 2013

According to The Pegasus View for Q4 2013, average daily rates paid for leisure hotel stays grew consistently in 2013, ending the year with positive global year-on-year growth for all 12 months.

Global leisure bookings began fourth quarter under 2013 levels by -0.8% in October, but rose through November (+1.9%) to reach +4.3% in December thanks to holiday demand. The solid vacation demand helped hoteliers increase rates throughout the year, including fourth quarter. Rates began the quarter ahead of 2012 by +2.6% in October, reaching +3.3% in November and finishing at +4.8% in December.

“This kind of consistent rate growth for leisure bookings means hotels are watching and responding appropriately to growing demand,” said David Millili, chief executive officer of Pegasus Solutions. “Besides the obvious 2014 opportunities for hotels in Winter Olympic or World Cup destinations, all hotels can benefit from more universal opportunities like mobile. We now see that device penetration for smartphones and tablets is being bolstered by higher consumer comfort levels with booking via mobile. That translates to real revenue opportunity for hotels with reliable mobile sites and technology in place.”

Year-on-year global corporate bookings paused in November, but returned to finish the year with a +7.4% bookings jump. Corporate booking growth with steadily improved rates was driven by increases in both transient and group business, including meetings. Rates paid for corporate bookings stayed slightly ahead of 2012 in fourth quarter, moving from a gain of +2.7% in October, then steadying to a margin of +1.7% in both November and December.

Data reported in The Pegasus View comes from billions of transactions processed monthly by the company, and reflects data drawn from both GDS and ADS transactions, representing the business and leisure markets respectively.