Global hotel rates climbed in February according to data released today by Pegasus Solutions in The Pegasus View. Business travel rates rose a remarkable +7% over February 2010, and rates paid by leisure travelers for hotel rooms increased +3.6% over the same period.
Global reservations through the mostly leisure alternative distribution systems (ADS), or online channels, declined from January's levels due to a variety of factors including regional unrest in the Middle East and North Africa. However, bookings growth still remained above February 2010 by +1.1% as the average daily rate (ADR) set a new growth record for North America at +2.9%, rising for the rest of the world to an almost +5% increase over last year.
"Despite the challenges unfolding at a regional level in the Middle East and North Africa, hoteliers were still able to raise rates enough in February to achieve average rate growth worldwide and capture more bookings than last year," said Mike Kistner, chief executive officer of Pegasus Solutions. "Consumers are not only traveling, but they are also willing to spend more. Additionally, the corporate market is booking more groups and meetings business from corporations of all sizes as February bookings, rate and revenue growth was coupled with increases in length of stay and booking lead time."
February global distribution system (GDS) bookings, representing the mostly corporate market, grew a substantial +23.5%, driving revenue up +36.8% over 2010. Both length of stay and booking lead time for this segment also expanded. Forward-looking data shows this segment displaying average monthly growth of more than +20% through July, with accompanying rate, length of stay and booking lead time increases.
While the full impact of the Japan earthquake will be analyzed in a special edition of The Pegasus View, forward-looking data for February's report displays a continued leisure travel recovery. Bookings made thus far through online channels suggest growth rates strong enough to regain lost momentum during the upcoming spring and summer travel periods.
The February 2011 The Pegasus View is available in its entirety online and by free subscription at www.pegs.com. Data reported in The Pegasus View comes from billions of transactions processed monthly by Pegasus Solutions, the world's single largest global processor of hotel transactions. It is the only industry report to reflect data drawn from both GDS and ADS transactions, representing the business and leisure markets respectively for approximately 90,000 hotels worldwide.
About Pegasus -- Proud honoree of the 2010 InformationWeek 500, CIO 100 and InfoWorld Top 100
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 approximately 90,000 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 nearly 6,000 member hotels in more than 130 countries. Pegasus is the hotel industry's most experienced 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 21 offices in 12 countries, including regional hubs in London, Singapore and Scottsdale, Arizona. For more information, please visit www.pegs.com or www.utell.com.