Total worldwide hotel
bookings through global distribution system channels in January jumped 7.9
percent year over year before leveling off and remaining essentially flat in
February and March, resulting in overall first-quarter growth of 2.4 percent,
according to Pegasus Solutions. The average rates on those bookings maintained
the modest growth rate that began in December, which followed six consecutive
months of lower average rates, finishing the quarter up 1.7 percent.
"Slower business
travel in the latter portion of 2012 is giving way to more decisive corporate
travel spending in 2013," Pegasus wrote in its most recent update.
"Slow but consistent rate growth reflects companies' increased willingness
to raise their travel spend." The company cited an "overall ease of
economic and political uncertainty" and resurgent international travel
fueled in part by "more industrial production and retail sales in
China."
Pegasus added that a
longer average length of stay for hotel bookings—up 0.5 percent globally year
over year in March to 2.15 nights—is "also a reflection of more international
travel." At the same time, the average booking lead time also increased in
March by 0.5 percent, to 19.19 days. That, according to Pegasus, "points
to more group travel, driven by corporations capitalizing on international
opportunities through meeting and conference attendance."
Specifically in North
America, hotel booking volume in GDS channels "spiked" in January,
dipped "slightly" in February (versus February 2012, which included
29 days) and rose by 0.6 percent in March, according to Pegasus data. Average
rates in the region maintained a marginal growth trend.
Outside of North
America, first-quarter results "reflect bumpy but improving overall
business trends," Pegasus reported.
Looking ahead, the
company wrote that "global GDS forward-looking data points to solid
business travel ahead, with revenue being driven by growth in rates and longer
stays. Booking volumes may rise compared to prior year in April, but will
remain within range of prior year in general. Rates will continue to deliver
modest but more consistent growth for arrivals through July."