Global leisure daily hotel rates achieved a brand new growth record of +5.1% over prior year in June, consistent with second quarter data released today by Pegasus Solutions within the Pegasus View. The one largest processor of electronic hotel transactions reported that together with solid performance for holiday travel, business travel maintained prior year levels for both bookings and rates in the course of the off-season.
As rates continued to grow for the leisure channel globally, booking growth paused in June, coming within -2.0% of June 2012. After spring closed with substantial booking growth of +6.2% and +3.7% over prior year in April and should, the stall continues to be positive given the general growth it represents. June 2012 increased by +8.5% over 2011, and June 2011 increased by +7.5% over 2010. Overall, vacation travel remains to be making real progress at encouraging prices for hoteliers.
“The performance we’re seeing may be attributed to the proper formula for hotels: lower room supply with increased leisure and business travel demand,” said David Millili, chief executive officer of Pegasus Solutions. “The second quarter compared against prior years shows that while demand is present, hotels also are present with real distribution strategies. Taking time to know and maneuver the sector of distribution helps hotels attract bookings across both channels on the prices they need guests to pay.”
For the company channel, which pulls on bookings made in the course of the global distribution systems (GDS), second quarter bookings spiked early before stabilizing to prior year levels. April’s bookings rose +6.2% over 2012, leveling to simply sooner than June 2012 by +0.7% on the close of June. Rates held firm, remaining in spite of prior year through the second quarter, and ending with June coming just shy of prior year by -0.7%.
Looking forward, the company channel is anticipated to keep solid volume and rates globally, but to not deliver substantial gains over 2012. Future stays suggest rates, however, will pick-up in September and October because the convention season begins. For the leisure channel, July and August rates may rise by over +4.0%, with rates towards prior year in September and October. Booking volume would be at or near prior year levels into early autumn.
Data reported by Pegasus Solutions comes from billions of transactions processed monthly for almost 100,000 hotels, facilitating greater than $16 billion a year. The Pegasus View, produced quarterly, is the only real industry report back to reflect data drawn from both GDS and ADS transactions, representing the business and leisure markets respectively. Pegasus’ PegasusView Market Performance business intelligence is a monthly reporting product augmenting the worldwide data provided quarterly inside the Pegasus View.
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