Q1 2007 Worldwide Electronic Hotel Revenue Up 16.8 Percent, According to TravelCLICK

  • TravelClick
  • 08.06.07
TravelCLICK's quarterly eMonitor results indicate continued steady health for the hotel industry based on electronic distribution performance for the first quarter of 2007.

The data shows that 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.

eMonitor results are compiled from TravelCLICK’s comprehensive proprietary database, which is the exclusive source of hotel industry electronic distribution data from the Amadeus, Galileo, Sabre and Worldspan GDS. The database of electronic distribution performance provides a comprehensive foundation for data analysis and trend forecasting that is used by the global hospitality industry in the development of integrated distribution strategy.

Observations for the market based on this latest data include:

  • 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 e-marketing products at 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 Component
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. Travel agents also continued to be a key source of higher rate business for hotels. The average rate for room nights booked through travel agents for the first quarter of 2007 was 43.6 percent higher than the average rate for room nights booked via the Internet for the same period last year.
 
Internet Component
Internet room nights, sourced from consumer online transactions on third-party Web sites 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.
 
First Quarter 2007
Consumer Internet represented 18.8 percent of the total GDS/ODD ecommerce, up from 15.1 percent last year.
 
 

Room Nights

% Change

ADR

% Change

Travel Agent (GDS) Component

26,529,543

         4.6%

$161.16

10.7%

Consumer Internet Component

6,149,600

10.7%

$112.24

11.4%

Total GDS and ODD Hotel eCommerce

32,679,143

5.7%

$151.96

10.5%

 
 
GDS Performance by Market Segment
Results for the first quarter of 2007 by market segment are shown below for GDS bookings only. All market segments except economy showed increases in room nights compared to the first quarter of 2006. All market segments showed increases in ADR compared to the first quarter of 2006.
 
First Quarter 2007
All segments show strong growth in ADR, with the luxury segment almost tripling, from 3.8 percent last year to 10.3 percent in the first quarter of 2007.
 
 

Market Segment

Room Nights

% Change

ADR

% Change

Luxury

939,753

15.0%

$361.19

10.3%

Upscale

10,354,408

3.7%

$192.59

10.3%

Mid-Scale

11,783,720

3.6%

$125.12

10.8%

Economy

2,116,244

-1.5%

$85.17

7.0%

 
 
Top Destination Markets
In the first quarter of 2007, London was the top destination market, with double-digit growth. New York took top position for ADR and second position for room nights.

The top 10 worldwide destination markets in room nights for GDS and ODD-powered third-party Web sites, in order, were:

First Quarter 2007
 

Top Destination Markets

Room Nights

% Change

ADR

% Change

London

1,464,544

18.9%

$213.66

16.5%

New York

1,397,507

6.6%

$244.09

8.6%

Los Angeles

1,107,773

0.2%

$160.83

8.9%

San Francisco/Oakland/San Jose

993,294

3.0%

$159.79

8.5%

Washington/Baltimore

893,757

1.6%

$180.66

5.0%

Chicago

734,390

2.9%

$142.31

7.2%

Dallas

600,780

-1.2%

$127.00

10.8%

Atlanta

528,038

-2.3%

$128.96

7.3%

Houston

494,422

4.9%

$133.37

9.3%

Boston

446,029

4.3%

$150.09

4.9%

 
 
About TravelCLICK
TravelCLICK is a leading provider of e-marketing solutions that help hotels sell rooms smarter and drive long-term profitability. TravelCLICK helps hotels maximize asset ROI by combining innovative market analysis and proven industry best practices with advanced technology to develop and implement high-return strategies. The company offers a full set of solutions including reservations and distribution management, market intelligence-based decision support and marketing services. Serving the hospitality industry since 1996 and headquartered in the Chicago area, TravelCLICK has more than 12,000 customers in 140 countries.



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