Worldwide Electronic Hotel Revenue Up 14.6 Percent In Q2 2007, According to TravelCLICK

  • TravelClick
  • 11.02.07
TravelCLICK's quarterly eMonitor results indicate continued steady health for the hotel industry based on electronic distribution performance for the second quarter of 2007.

Key indicators of growth compared to the second quarter of 2006 are:

Hotel bookings through electronic channels are on pace to surpass TravelCLICK’s projection of 120 million room nights this year.

  • Worldwide electronic hotel revenue from the global distribution systems (GDS) and key Internet sites increased 14.6 percent  
  • Number of room nights booked via electronic channels increased 4.4 percent
  • Average daily rate (ADR) increased by 9.8 percent

Observations for the market based on this latest data include:

  • Hotel bookings through electronic channels are on pace to surpass TravelCLICK’s projection of 120 million room nights this year.
  • Electronic bookings and ADR continue strong year-over-year growth in nearly every segment and top destination market.
  • Luxury hotel room nights reserved through travel agents increased 10.8 percent and surpassed $384 per night in ADR.
  • Travelers continue to book short trips. The average length of stay for the second quarter 2007 was 2.09 nights, similar to last year’s 2.08 nights.

“While travel agent and Internet-generated bookings continue to grow, it’s the luxury segment that is the top performer,” said John Hach, vice president of e-marketing products at TravelCLICK. “Luxury experienced double digit growth in both room nights booked and average daily rate — approaching the $400 per night benchmark. We expect this trend to continue throughout 2007.”

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.

Travel Agent Component
Travel agents continue to be a key source of higher rate business for hotels: The average rate for room nights booked through travel agents for the second quarter of 2007 was 45 percent higher than the average rate for room nights booked via the Internet for the same period.

Travel agent bookings represented 78.4 percent of total room nights. The travel agent component of GDS bookings showed a 10.1 percent increase in ADR and a 15.3 percent increase in revenue versus the second quarter of 2006.

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 3.5 percent compared to the second quarter of 2006. ADR was up 7.7 percent for Internet bookings, and revenue was up 11.5 percent compared to the same period last year.
 
Second Quarter 2007 –
Consumer Internet represented 20.3 percent of the total GDS/ODD ecommerce, up from 16.8 percent last year.

 

 

Room Nights

% Change

ADR

% Change

Travel Agent (GDS) Component

28,046,857

4.7%

$167.89

10.1%

Consumer Internet Component

7,715,148

3.5%

$115.81

7.7%

Total GDS and ODD Hotel eCommerce

35,762,005

4.4%

$156.65

9.8%

 
 
GDS Performance by Market Segment
Results for the second quarter of 2007 by market segment are shown below for GDS bookings only. All market segments show increases in room nights and ADR compared to the second quarter of 2006.
 
Second Quarter 2007
All segments show strong growth in ADR, with the luxury segment increasing from 8.8 percent last year to 10.2 percent in the second quarter of 2007.
 
 

Market Segment

Room Nights

% Change

ADR

% Change

Luxury

1,050,462

10.8%

$384.05

10.2%

Upscale

10,786,909

4.5%

$199.50

9.5%

Mid-scale

12,532,566

3.0%

$129.85

9.7%

Economy

2,551,872

1.7%

$86.04

6.0%

 
 
Top Destination Markets
In the second quarter of 2007, London was the top destination market, with double-digit growth.

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

Second Quarter 2007
 
 

Top Destination Markets

Room Nights

% Change

ADR

% Change

LONDON

2,167,862

16.6%

$193.71

14.1%

NEW YORK

1,622,685

6.0%

$277.93

11.0%

LOS ANGELES

1,194,078

0.4%

$157.29

8.5%

SAN FRANCISCO/OAKLAND/SAN JOSE

1,090,999

4.3%

$160.16

8.8%

WASHINGTON/BALTIMORE

1,078,023

0.6%

$186.44

4.6%

CHICAGO

907,056

-1.3%

$165.76

7.6%

DALLAS

656,429

0.7%

$124.35

9.1%

ATLANTA

598,064

1.4%

$125.03

6.6%

BOSTON

557,973

1.9%

$175.88

5.5%

HOUSTON

525,280

5.0%

$134.58

10.6%

 
 
For more data on worldwide electronic bookings trends, visit the information center of the TravelCLICK Web site.

Some historical calculations may have been adjusted based on the most recent data.




Related Articles
want to read more articles like this?

want to read more articles like this?

Sign up to receive our twice-a-month Watercooler and Siegel Sez Newsletters and never miss another article or news story.