The hotel industry witnessed steady growth based on electronic distribution performance for the first quarter of 2007.
According to TravelCLICK’s quarterly eMonitor, the worldwide electronic hotel revenue from the Global Distribution Systems (GDS) and key Internet sites increased 16.8 percent over the first quarter of 2006. The number of electronic room nights booked for the first quarter increased 5.7 percent over the same time last year, while the Average Daily Rate (ADR) increased by 10.5 percent. The average length of stay for the first quarter 2007 was 2.11 nights, nearly the same as last year.
Hotel bookings through electronic channels are on pace to generate more than 120 million room nights this year.
In the first quarter of 2007, luxury hotel room nights reserved through travel agents increased 15 percent and surpassed $360 per night in ADR.
In nearly every segment and top destination market, electronic bookings and ADR continue strong year-over-year growth.
“The luxury hotel market is benefiting greatly from travel agent-generated bookings to sustain high levels of ADR growth,” said John Hach, Vice President of eMarketing Products, TravelCLICK. “The ADR growth and room night increase are creating a more than $100 per night ‘wall’ between the luxury and upscale market segments. Highly targeted advertising strategies are vital to differentiate luxury properties that are vying for the large ADR opportunity within the travel agent channel.”
Travel agent bookings represented 81.2 percent of total room nights. The travel agent component of GDS bookings showed a 10.7 percent increase in ADR and a 15.8 percent increase in revenue versus the first quarter of 2006.
Internet room nights, sourced from consumer online transactions on third-party websites powered by the GDS and Online Distribution Database (ODD), showed a gain of 10.7 percent compared to the first quarter of 2006. ADR was up 11.4 percent for Internet bookings, and revenue was up 23.4 percent compared to the same period last year.
Consumer Internet represented 18.8 percent of the total GDS/ODD ecommerce, up from 15.1 percent last year.