Global business and leisure hotel rates up

Global average daily rates (ADR) for both business and leisure hotel rooms continued to climb in January, according to Pegasus Solutions’ data.

Following a record increase over 2010 in December 2011, January 2012 saw business rates grow +3.8 percent and leisure rates rise +7.0 percent over January 2011, shared The Pegasus View January edition.


Corporate travel continues to fuel recovery. January global GDS bookings came within -1.6 percent of prior year; solid volume considering January 2011 grew by almost +30 percent over 2010. Global ADR grew by +3.8 percent over prior year, with the North American and South American regions having the highest rate growth of +7.0 percent and +8.1 percent, respectively.

Leisure travel performed well for a post-holiday period. January global ADS bookings came within -5.0 percent of prior year; January 2011 had already increased by +11.4 percent over 2010. Global ADR grew by +7.0 percent. North America and South America lead regional leisure rate growth also, with ADR increases of +6.1 percent and +5.7 percent.

Bookings, however, eased off levels from January 2011, a month that realised robust double-digit margins over 2010 for both channels. In January 2012, global corporate bookings dropped -1.6 percent while leisure bookings fell -5.0 percent. The only increase was for leisure bookings outside of North America, which increased +3.0 percent.

“While the data suggests a lull in bookings, rising rates in January were supported by strong demand,” said Mike Kistner, chief executive officer of Pegasus Solutions. “Comparison shopping for leisure travel in January 2012 drove the look-to-book ratio to a new high of 4,500 availability and information requests for every one booking made. In the past, this aggressive shopping has resulted in downward pressure on rates, but we saw rate growth instead.”

According to Pegasus, looking forward, global corporate bookings, those made through the global distribution systems, show bookings hovering near prior year levels through April, and potentially gaining momentum in May.

Leisure data predicts promise for spring vacation travel as business on the books shows marginal movement from prior year in total through April, again with anticipated pick-up in May.

Related Reads

comments powered by Disqus