Business travel is returning amidst the ongoing debateabout whether the global economic recovery is losing
steam,” says Pegasus CEO Mike Kistner. “What we’re
seeing is a rise in corporate travel demand being driven by
corporations’ urgency to pursue sales and new businessopportunities now more than ever”
Future hotel bookings showdouble-digit increases into 2011
By HOTELS EditorsEdited by Ursula Nehr/
Revup Client Services Advisor
According to data from Pegasus Solutions future bookingsfor both sectors are returning average double-digitincreases through the first quarter of 2011.
The channel’s reservation volumes jumped 27.9%, while
ADR increased 7.4%, helping drive revenue up 42.9% over 2009. These figures were accompanied by slight increasesin average length of stay and booking lead times, keyindicators of market confidence.The leisure market, dominated by bookings made throughalternative distribution systems, is also realizing revenueboosts through increases in ADR. While booking volumeshover at 10% higher than the prior year, a lift of 3% in ADRin August drove revenue up 13.7% over 2009, evidencing amore favorable balance between supply and demand. As demand growth continues and hoteliers feel comfortableraising rates, Pegasus data shows double-digit growth inbookings for both channels through the first quarter.Through the GDS, bookings currently show increases of more than 20% for nearly every month, along withstrengthening ADR, while alternative distribution systembooking volumes are expected to grow at an average paceof 10% for the same period.
How can Revup’s users maximize their
profits & take advantage of new businessopportunities?
First step is to take a look at what systemforecast is displaying. Are there any days thatcould benefit from changes in strategies? Are weable to increase pricing to optimize higher ADR?Will change in sell rate give us needed demand?Based on historical booking & pace behavior information forecast is a very powerful tool & withits real-time calculations users are able tomanage demand in more consistent & beneficiarymanner.
Next step for the user is to take a closer look atmarket demand data.
What is the market’s pace?
Do we see increase or decrease in demand over period of time?
users need to remember that the pace of demand is the earliest indicator
of the hospitality market’s direction
.By observing demand performance for futuredates, we can take definitive actions to get themost out of transitory revenue opportunities.