Pegasus Solutions has issued the March edition of The Pegasus View, indicating a tipping point in booking confidence, especially in business travel. Based on data drawn from billions of global distribution system (GDS) and alternative distribution system (ADS) transactions for the month, March's The Pegasus View shows future bookings through the GDS are up five of the next six months, while bookings for Q1 2010 through both channels were higher than the same period for the last three years.
Of relative importance to hotels struggling with depressed rates, March 2010 average daily rate (ADR) jumped +1.68% over March 2009, representing the first year-over-year rate increase in quite some time. March bookings through both the GDS and ADS also exceeded March 2009 by +7.96%, March 2008 by +19.91%, and March 2007 by +27.18%.
"It's here. We and other experts have been forecasting, hoping for, a recovery, and now the numbers show it. Net revenue in the GDS is up for the third month in a row, five of the next six months are up in the same channel, and ADR in both channels actually rose for a change," said Mike Kistner, chief executive officer of Pegasus Solutions. "Now is the time for the hotels that weathered the storm to plan for the next: an upswing. Revenue management and yield management strategies will be more important than ever in translating the coming increase in travel to closing the ADR gap, thus raising prospects for increasing gross revenue."
Revenues through both channels in March 2010 came in +8.29% over 2009, +0.91% over 2008 and +10.97% over 2007, with the first quarter realizing a +5.42% increase above the first quarter of 2009. This and other data in The Pegasus View, as well as other industry reports, paints a positive outlook for 2010, according to Kistner.
"As corporations report earnings in line with or better than expectations, business travel overall should react accordingly," added Kistner. "This, combined with consumer confidence, will provide a good indication of the coming summer months, which rely heavily on the leisure market. We're keeping a watchful eye on the world's economies as they will determine the sustainability of this recovery."
The Pegasus View for March 2010 features added commentary from industry experts Timothy O'Neil Dunne of T2 Impact and Jason Harris of BCD Travel. It is available in its entirety online and by free subscription at www.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.
About Pegasus Solutions Inc.
Pegasus Solutions is the world's leading provider of technology and services to hotels and travel distributors, supplying the award-winning RezView® NG central reservation system, electronic distribution services, advanced agency commission processing and payment services, and hotel marketing representation services. Founded in 1989, Pegasus created and launched the hotel switch, and today its customers include more than 95,000 properties around the globe as well as a majority of the world's travel agencies. Additionally, Pegasus' powerful representation arm incorporates Utell® Hotels & Resorts and Utell Connect, services that have been chosen by more than 9,000 member hotels in more than 130 countries, making Pegasus the hotel industry's largest third-party marketing, sales and reservations specialist. Pegasus also powers the niche consumer Web site www.hotelbook.comTM, dedicated to promoting independent and boutique hotels throughout the world. Headquartered in Dallas, Pegasus has 18 offices in 11 countries, including regional hubs in London, Singapore and Scottsdale, Arizona. For more information, please visit www.pegs.com or www.utell.com.