The average daily hotel rate paid through global distribution system channels in September increased 3.5 percent year over year, the smallest increase since March 2010,

according to Pegasus Solutions. Global GDS hotel reservations volume increased by 6.1 percent. The average daily rate for North American properties in GDS channels increased by 4.6 percent year over year, while bookings were up 3.8 percent. "The need for corporate travel is driving the demand that supports rising average daily rates," according to Pegasus. "Corporations are leveraging videoconferencing technology, especially for inter-office communication, to curtail their travel budgets. Yet, steady growth in this market is evidence that decision makers still recognize the benefit of face-to-face interaction for developing and strengthening relationships with potential and existing customers. Most companies, particularly large ones, are still in a better earnings and cash flow position than last year. However, even those businesses are exercising prudence in how their travel budgets are spent."