Global online bookings and rates experience highest year-on-year growth in last 12 months. Friday, 25th July 2014 Source : Pegasus Solutions
The second quarter ended on a high note for both the business and leisure travel segments;
Global leisure travel booked online yielded impressive reservation and rate growth during the second quarter, growing by +10.2% and +6.5% in June respectively.
This represents the highest year-over-year growth for both leisure measures over the last 12 months. Corporate bookings and average daily rates (ADR) through the global distribution systems (GDSs) reached global year-over-year growth of +1.4% and +4.2% by June.
Forward-looking data suggests more growth in store through the beginning of autumn. Pricing remains a powerful influence, but substantial rate growth indicates it is not the only factor driving booking decisions, especially as online channels attract more corporate shoppers.
More than ever, an effective online presence (on both the hotel website as well as through online travel agencies and meta search sites) is essential to capturing your fair share of the bookings available.
Both transient and group business travel is on the rise, thanks to an increase in client and company meetings, as well as conferences and conventions.
Tourism is increasing globally, with the number of trips taken and room rates paid for domestic and international travel continuing to grow significantly.
Global GDS forward-looking data shows corporate booking growth may be put on hold by consumer leisure focus in July and August. The channel will experience moderate volume increases in September and October with steady rate gains.
Global ADS forward-looking data shows ongoing and late summer travel should sustain elevated hotel revenue at double-digit growth through September, thanks to high volumes and rates.
GDS CHANNEL (CORPORATE TRAVEL FOCUS)
Global performance through the GDSs reflects substantial corporate travel demand for the quarter. While business bookings eased below prior year in April by -3.8% and in May by -2.7%, reservations rose above prior year by +1.4% in June.
The slower year-over-year growth in April and May was due in part to several global and regional holidays falling closer to the weekend than prior year, encouraging more leisure travel.
Despite the relatively minor fluctuation in global corporate travel volume compared to last year, hotels are consistently achieving higher room rates for business stays. Even during April and May’s slight dip, ADR increased by +1.9% and +2.8%; reaching a recent growth high of +4.2% with increased reservation volumes in June.
Steady rate growth speaks to strong corporate travel demand that is not being overshadowed by excess new room supply, in most markets.
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