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Pegasus Solutions Issues a Special Report on the Impact of the Icelandic Volcano Eruptions on European Hotel Volumes

May 07, 2010 - Pegasus Solutions has issued a special edition of The Pegasus View detailing the unexpected bonus to the European hotel industry that resulted from more than 100,000 flight cancellations during the week of April 14-21, 2010.

As continued volcanic activity in Iceland has led to more airport shutdowns this week, Pegasus’ raw data indicates the aviation industry absorbed the brunt of the Eyjafjallajokull ash cloud’s negative financial impact, while some European hotels realized triple digit jumps in revenue.

Acknowledging that the net effect on individual hotels will naturally vary, the report taps Pegasus’ GDS and ADS data, comparing European reservation volumes from April 14 to 21 to the same respective day of the week in 2009. Some of the findings are not surprising, such as a 22 percent drop in length of stay (LOS) on April 17 as stranded weekend passengers opted for as short a stay as possible. Other conclusions were surprisingly positive, according to Mike Kistner, chief executive officer of Pegasus Solutions.

“This period saw a substantial rise in cancellations, peaking at more than 508 percent on Sunday the 19th,” said Kistner. “However, our analysis of activity by date of arrival also saw increases in bookings of as much as 135 percent, with an accompanying rise in average daily rate, which has been the bane of the hotel industry of late. Increased walk-in rates paid by stranded travelers boosted ADR more than 10 percent over 2009 for four days straight, allowing net revenue for the period to increase as much as 120 percent. Stressful? Yes. Profitable? You bet.”

The Pegasus View volcano special edition includes data and analysis by date of booking and date of arrival for France, Germany, Spain, the United Kingdom and Europe combined. 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, one of the world’s single largest global processors of hotel transactions through the four GDS (Amadeus, Galileo, Sabre, and Worldspan) and ADS channels.

Pegasus Solutions is one of the world’s leading providers 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 nearly 100,000 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 146 countries, making Pegasus one of the hotel industry’s largest third-party marketing, sales and reservations specialists. Pegasus also powers the niche consumer Web site www.hotelbook.com™, 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, Ariz.

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Pegasus Solutions Issues a Special Report on the Impact of the Icelandic Volcano Eruptions on European Hotel Volumes

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