Julie Parodi, Senior Director, Strategic Planning and Analysis & Editor, Pegasus View

December 6, 2011 § Leave a comment

Julie is sharing the Industry Trends

The Data
Data is from the 90,000 hotels from 300 chains which process via Pegasus. Pegasus has forward data which is not forecast, but bookings which are in the system, and comparing bookings “on the books” at the same point in the previous year. Booking window is typically 2-3 weeks out.

North America Corporate Trends
Tipping point in April 2011
Recovery is still happening, but at a slower pace
Bookings grow by more modest margin, ADR shows solid growth.
It appears that Length Of Service is being used by corporates to contain costs per trip.

Rest of the World
Similar pattern to North America corporate demand growth
Bookings are out pacing prior year, but ADR growth is softer than in North America.

Leisure Travel
North America it appears that leisure travel is showing resilience. More vacations are being taken than last year. Rates are not being reduced
RoW here the impact of the economy is taking greater toll, with the revenue growth being flat, but at least it is keeping up with the previous year.
Again in the leisure market the LOS is being used to control costs.
They are searching for the best value Look to Book ratio continues to grow.
In Jan 2011 there were 3,500 looks to each book!!!

What does the future look like?
Corporate travel is looking to continue growing.
Leisure demand will get both booking and ADR growth.
Vast majority of consumers plan more getaways in 2012 than in 2010
However, it will be at least 2013 till we get back occupancy and ADR to pre recession levels.

 

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