Global Hotel Rates Climb in February
Global hotel rates climbed in February 2011 according to data released on Wednesday by Pegasus Solutions.
Business travel rates rose a remarkable +7% over February 2010, and rates paid by leisure travelers for hotel rooms increased +3.6% over the same period.
Global reservations through the mostly leisure alternative distribution systems (ADS), or online channels, declined from January’s levels due to a variety of factors including regional unrest in the Middle East and North Africa. However, bookings growth still remained above February 2010 by +1.1% as the average daily rate (ADR) set a new growth record for North America at +2.9%, rising for the rest of the world to an almost +5% increase over last year.
“Despite the challenges unfolding at a regional level in the Middle East and North Africa, hoteliers were still able to raise rates enough in February to achieve average rate growth worldwide and capture more bookings than last year,” said Mike Kistner, chief executive officer of Pegasus Solutions. “Consumers are not only traveling, but they are also willing to spend more. Additionally, the corporate market is booking more groups and meetings business from corporations of all sizes as February bookings, rate and revenue growth was coupled with increases in length of stay and booking lead time.”
February global distribution system (GDS) bookings, representing the mostly corporate market, grew a substantial +23.5%, driving revenue up +36.8% over 2010. Both length of stay and booking lead time for this segment also expanded. Forward-looking data shows this segment displaying average monthly growth of more than +20% through July, with accompanying rate, length of stay and booking lead time increases.
While the full impact of the Japan earthquake will be analyzed in a special edition of The Pegasus View, forward-looking data for February’s report displays a continued leisure travel recovery. Bookings made thus far through online channels suggest growth rates strong enough to regain lost momentum during the upcoming spring and summer travel periods.