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Forward-looking data from Pegasus Solutions shows a more than +30% increase in global distribution system (GDS) revenue for hotels year-on-year through the end of September. The positive data, as reported in the May issue of The Pegasus View, indicates double-digit growth in hotel booking volumes for both corporate and leisure travel.
The Pegasus View sources data from billions of GDS and alternative distribution system (ADS) transactions, representing corporate and leisure travel respectively, for nearly 100,000 global hotels. With forward-looking data indicating sustained increases in GDS average daily rate (ADR) and length of stay (LOS), the May report also shows a remarkable +39.6% increase in net revenue on a date-of-booking basis for the GDS channel, according to Mike Kistner, chief executive officer of Pegasus Solutions.
“In last month’s edition, we gave Eyjafjallajokull much of the credit for the increased bookings and revenue through the GDS channel,” said Kistner. “However, in the absence of another ash crisis, May continued the upwards growth trend with the highest GDS revenue increase over 2009 for any month in 2010. May bookings only fell off April’s unexpected boost slightly, maintaining a powerful growth rate of +26.6%, and a continued rise in ADR of +6.5%.”
The ADS channel, which represents online hotel reservations, is experiencing somewhat slower and steadier levels of growth, accompanied by continually depressed ADR. These ADR levels, however are showing slight signs of increasing. With the now to be expected jump in look-to-books of +53.5% year-on-year, ADS revenue also remains stifled due to shorter stays. However, lead times in May increased by one-tenth to 26.2 days, another important indicator of a return in consumer confidence.
“Leisure travel demand is alive and well. Consumers will be traveling this summer, though they are shortening their stays and expanding searches for the best value,” added Kistner. “With the return of traveler confidence comes the opportunity to increase your revenue. Merchandise the guest experience, offer a guest-focused service model and create demand for your unique product.”
The Pegasus View for May 2010 is available in its entirety with global and regional expert analysis online and by free subscription at pegs.com. Data reported in The Pegasus View comes from Pegasus Solutions, the world’s single largest global processor of hotel transactions through the four GDS (Amadeus, Galileo, Sabre, and Worldspan) and ADS channels.
TravelDailyNews Asia-Pacific editorial team has an experience of over 35 years in B2B travel journalism as well as in tourism & hospitality marketing and communications.
