Leisure Hotel Rates Realize Record Growth According to Data Released from Pegasus Solutions

  • Pegasus Solutions Inc.
  • 07.05.11
Leisure hotel rates realized record growth in May, climbing almost 5 percent according to monthly data released from Pegasus Solutions in The Pegasus View.

The corporate market, having suffered a brief booking dip in April, returned to bookings increases of 15 percent over 2010 in May, accompanied by rate increases of 6.5 percent.

Forward-looking data in April indicated a strong summer travel season for the leisure market, which was realized with reservations growth of 8.3 percent over prior year in May. Together, the rate and bookings increases drove a rise in global hotel revenue of 15 percent over prior year, surpassing the year-to-date growth pace of 12.5 percent.

“Rising leisure rates indicate rising demand, but consumers are keeping budgets in check by shortening trips and seeking out packages for the best value,” said Mike Kistner, chief executive officer of Pegasus Solutions. “Hotels can attract their fair share or more of this demand by offering value through distinctive packages – enticingly priced offerings involving additional nights, premium hotel services and/or local attractions – rather than invoking profit-eroding standard rate discounts.”

Global corporate travel bookings jumped from April’s temporary growth slump to an increase of 15 percent in May. Average daily rate (ADR) growth for the channel kept to the year-to-date pace of 6.5 percent over 2010, and is expected to trend strongly through the third quarter. Pegasus’ forward-looking data, based on business on the books, shows corporate bookings ramping back to near 20 percent growth in the third quarter, with length of stay (LOS) and booking lead times also increasing.

The forecast for the leisure market is equally promising. Data shows steady leisure travel bookings growing at an average pace of 10 percent over 2010, accompanied by steady and potentially climbing rate growth through summer. Rates for the segment have been increasing for a solid year now, though at less than half of those for business travel.

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.