Return to our Home page Search
Click here for the hotel and hospitality news from around the globe Hotel, Travel and Hospitality Articles Videos and in-depth Interviews
Read more now
Read more now
Read more now
Hotels realize steady global gains in both business and leisure in Q1.
Thursday, 1st May 2014
Source : Pegasus Solutions

The first quarter closed with hotels realizing steady gains in both business and leisure volumes and rates.

On a global level, each month saw increases over prior year in reservations booked through the global distribution systems (GDSs) and alternate distribution systems (ADSs), as well as in the rates paid for those rooms.

4Hoteliers Image LibraryCorporate volumes climbed from slight increases in January and February to a solid +4.1% over prior year in March, resulting in a +2.2% year-to-date growth pace.

Rates paid by business travelers were at least +2.5% ahead of 2013 each month, averaging to +2.8% year-to-date.

Leisure bookings peaked in February, but fell only slightly to +3.7% ahead of March 2013 by quarter’s end.

Rates for leisure reservations made consistent gains, reaching as high as +5.8% over 2013 by the end of March, setting a significant pace of +4.3% year-to-date.

These increases can be attributed to a combination of pent-up and ongoing demand, which is enabling hoteliers to increase rates, maximizing profit potential. Forward-looking data suggests strong travel performance – for both channels – for the remainder of spring and into summer.


  • Each month of 2014 has seen the year-over-year global corporate booking volume increase over the previous month. This, accompanied by single-digit but steady rate growth, is fed by companies’ increased willingness to invest in profit-producing travel.
  • Leisure travel has already delivered an impressive performance this year globally, with volumes at least +3.1% over 2013 for January, February and March. As getaways gain budget priority, travelers are also willing to  pay higher rates, as evidenced in the first quarter’s data.
  • Global GDS forward-looking data indicates corporate bookings will approximate prior year levels into  summer, while rates will continue modest but consistent growth.
  • Global ADS forward-looking data shows a combination of solid reservation and rate growth, averaging +5%
    through July. These increases will set the stage for revenue growth that could reach near double-digit levels with the onset of summer travel and major events like World Cup in Brazil.

First quarter 2014 global performance for the GDS channel reflects strong corporate travel demand that continues to expand. January kicked off the year with business bookings ahead of January 2013 by +1.0%, with February and March bookings growing by +1.5% and +4.1% respectively.

Some of the lift seen in March was due to the Easter holiday falling in April this year instead of March, which allowed additional business focus and travel.

Overall, business travel demand is experiencing a steady rise that is affecting both the number of trips taken over prior year and room rates.

Monthly rates increased at an average of +2.8% during the first quarter over prior year. January, February and March rates respectively rose by +2.9%, +2.5% and +2.9%. These increases drove revenue growth of +4.3%, +4.8% and +7.4% thanks to companies relying on the strength of in-person meetings.
4Hoteliers Image Library

More trips are being taken for both transient and group business travel, as well as for small and large meetings.

This mixed rise in trip types has resulted in shorter average reservation lead times than prior year. Trips were booked an average of 18.07 days in advance during first quarter 2014 versus 18.07 days during first quarter 2013. March trips were booked 17.65 days ahead in 2014 versus 18.65 in 2013.

Trip length still seems to be contained to help control costs and keep travel return on investment in check. During first quarter, trips lasted an average of 2.17 days, versus 2.16 days during first quarter 2013. March trips averaged the same 2.14 nights as last year.
4Hoteliers Image Library

Read the full report HERE

~ Important Notice ~
Articles appearing here contain copyright material. They are meant for your personal use and may not be reproduced or redistributed. While 4Hoteliers makes every effort to ensure accuracy, we can not be held responsible for the content nor the views expressed, which may not necessarily be those of either the original author or 4Hoteliers or its agents.

Learn more about DigiJames - in room technology
 Related News  (Click title to read article)
US hotels in profitability sweet spot: double-digit gains in NOI forecast through 2015.
New Generation: new hotel guest technologies for new hotels.
Mid-market hotels in India are far behind in driving bookings.
Customer satisfaction with airlines remains low.
 Latest News  (Click title to read article)
TripAdvisor adds Uber to app
Friday, 22nd August 2014

Majority of Americans say they would vacation without staying connected
Friday, 22nd August 2014

Most devoted hotel brands revealed
Friday, 22nd August 2014

European tourism - strong growth
Friday, 22nd August 2014

New World Millennium Hong Kong Hotel debuts
Friday, 22nd August 2014
 Latest Articles  (Click title to read article)
The Smart Hotelier's Guide to 2015 Digital Marketing Budget Planning
Friday, 22nd August 2014

Whatever Floats Your Boat: Accommodation Alternatives in Paris
Friday, 22nd August 2014

How to Quickly Shift Your Target Markets: Lessons on Crisis Marketing Management
Friday, 22nd August 2014

What in Hell is the USP? And Why Do You Need One? Redux
Thursday, 21st August 2014

A Brief Guide to Managing Your Hotel's Digital Assets
Thursday, 21st August 2014
 Most Read News  (Click title to read article)
Thailand Situation Updated - June 27: Thailand tourism gets stronger than ever
NH Hotel Group disposes Amsterdam asset
NH Hotel presents new category of hotel: NH Collection
Singapore Airport T4: Ready for future growth
World's weirdest hotel requests and complaints

© Copyright 4Hoteliers 2001-2014 ~ unless stated otherwise, all rights reserved.
You can read more about 4Hoteliers and our company here

Use of this web site is subject to our
terms & conditions of service and privacy policy