Pegasus Solutions has released the March edition of The Pegasus View, indicating a tipping point in booking confidence, especially in business travel.

Published: 04 May 2010

Pegasus Solutions has released the March edition of The Pegasus View, indicating a tipping point in booking confidence, especially in business travel.

Based on data drawn from 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.