According to data released in The Pegasus View by Pegasus Solutions, 2010 ended with strong growth for both leisure and corporate hotel bookings despite widespread weather disruption and holiday flight cancellations. The year, which was guided strongly by both Mother Nature and the global economy, ended with leisure travel revenue up nearly +10% over 2009, and corporate revenue up almost +40% over the prior year. “December 2010 provided solid proof of a resilient recovery for both the leisure and corporate hotel markets,” said Mike Kistner…
According to data released in The Pegasus View by Pegasus Solutions, 2010 ended with strong growth for both leisure and corporate hotel bookings despite widespread weather disruption and holiday flight cancellations. The year, which was guided strongly by both Mother Nature and the global economy, ended with leisure travel revenue up nearly +10% over 2009, and corporate revenue up almost +40% over the prior year.
“December 2010 provided solid proof of a resilient recovery for both the leisure and corporate hotel markets,” said Mike Kistner, chief executive officer of Pegasus Solutions. “While we started the year at ALIS in San Diego predicting the market would turn the corner in 2010, we’re pleased to say the industry not only did that, but also began a persuasive climb back. All indications for the leisure market point to more bookings growth heading into the second quarter of this year with continued but variable average daily rate (ADR) growth. The corporate market demonstrates strength and durability with a solid performance in December, which is typically a softer month for business travel.”
Global revenue through the alternative distribution systems (ADS) in December increased +9.7% over 2009, beating the year-to-date growth rate of +9.2%. Global booking volumes through the channel, characterized by mostly leisure travel, increased by +8.2%; as ADR remained +1.2% ahead of its 2009 year-end level. Booking lead times also improved globally.
The corporate market, reflecting bookings made through the global distribution systems (GDS), realized a global increase in revenue of almost +40%. Global bookings grew by almost a quarter, again outpacing year-to-date growth of +20.3%, while ADR sustained its record growth of +7.4% for another month. Booking lead times increased for the channel, along with length of stay, indicating an increase in the much-desired group and meetings business.
Based on forward-looking data drawn from business on the books with Pegasus’ approximately 90,000 hotel customers worldwide, the growth pace of bookings in the leisure sector may slow during January and February, but looks to return heading into the second quarter. ADR will continue to improve with uneven growth in the leisure channel, while the corporate channel will see ADR growth at the same or greater pace than that seen in 2010. Business travel is expected to experience average monthly growth of approximately +30% into the second quarter.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
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