Pegasus Solutions reports a global decline in hotel reservations, length of stay, average daily rates and revenues so far this year.
Pegasus highlights global fall in hotel bookings
Pegasus Solutions reports a global decline in hotel reservations, length of stay, average daily rates and revenues so far this year.
Hotel transactions specialist Pegasus released a snapshot of the decline in hospitality in the first of a monthly Pegasus View report on industry trends.
Global distribution systems (GDSs) were worst affected, with hotel reservations down 8.43% and GDS revenues down 28.62% on the back of a decline in the average daily room rate of 20.53% to $148.76.
Pegasus chief executive Mike Kistner said GDS declines had been steeper in Europe than North America, reflecting cuts in corporate travel spending.
Online leisure-travel providers fared better in the second quarter with positive growth in four of the last five months, following a slow start to the year, leaving hotel reservations via alternative distribution channels essentially flat year on year to July. However, the average daily room rate has dropped to $83.86 from $119.48 in the same period last year and revenues have slumped by almost one third.
The trend towards shopping around for the best online deal produced a spike in the number of transactions processed compared with the number of reservations. The number of availability requests processed by Pegasus UltraSwitch in July increased 45% year on year to 2.8 billion, while the number of reservations rose by only 7.2%.
Pegasus processes 40 billion transactions a year, connecting 90,000 hotels to GDSs Sabre, Worldspan, Galileo and Amadeus. It forecasts little improvement in average daily rate, length of stay or revenues for the remainder of the year.
