Total worldwide hotel bookings through global distribution
systems in March fell 7.5 percent lower from 2011 levels, although the average
daily rates paid with those bookings increased 4.5 percent, according to
Pegasus Solutions.
GDS bookings in North America in March were down 9 percent
year over year. Rates, however, were up 6.5 percent in March and increased 6.8
percent for the first three months of the year. GDS bookings outside of North
America were down 5.8 percent in March, while rates were up 1.8 percent.
Pegasus noted that such bookings comparisons in were made
following strong growth in March 2011, when year-over-year bookings were up 25
percent globally, 20 percent in North America and 32 percent in the rest of the
world. Economic uncertainty also is causing more scrutiny and prioritization of
business travel, according to Pegasus.
Even so, Pegasus called the March results “reassuring,” adding
“the cumulative progress made since the recession began has been retained,
despite the shaky economic environment. Moreover, rates are not only continuing
to rise but are setting new growth records over the prior year in many
locations.”
Most rate growth is occurring in large international cities
that are home to corporate headquarters and/or host large conventions and
conferences. Group negotiated rates in particular are coming in higher than
they were during the recession, and corporate travel remains the “bedrock of
recovery,” according to Pegasus.
For the upcoming months, Pegasus projects GDS bookings will
trail 2011 in April, be nearly flat in May and July but might be higher in
June, while rates continue to increase throughout the next several months.