Corporate Travel Volume Hints at +15% Growth through August
Business travel market benefits from returning corporate travel budgets
The corporate hotel market saw global bookings increase +8.8% in June, according to data released today from Pegasus Solutions in The Pegasus View. Reinforcing healthy gains made overall in the first half of the year, the growth in business travel bookings could potentially climb to +15% through August, and possibly higher into the third quarter.
SCOTTSDALE, DALLAS and LONDON (July 28, 2011) – The corporate hotel market saw global bookings increase +8.8% in June, according to data released today from Pegasus Solutions in The Pegasus View. Reinforcing healthy gains made overall in the first half of the year, the growth in business travel bookings could potentially climb to +15% through August, and possibly higher into the third quarter.
"The business travel market is basking in the validating glow of returning corporate travel budgets," said Mike Kistner, chief executive officer of Pegasus Solutions. "Companies that previously slashed their travel budgets are again willing to now send their sales teams on the road, to trade shows, to meetings, or even to host their own meetings in the name of driving revenue."
With greater growth expected September through November, the corporate market, which represents bookings made through the global distribution systems (GDS), is also seeing average daily rate (ADR) rise at a healthy pace of more than +6% over 2010.
Leisure travel bookings, those made through online channels, grew by +7.3% over prior year, nearing the +8.2% year-to-date pace. Global ADR grew nearly +5% for the second consecutive month as consumers show a healthier appetite for vacations. Forward-looking data for the channel indicates overall bookings will increase nearly +10% into September, perhaps easing in October, and picking up again for the year-end holidays.
"Despite talked about economic hiccups, consumers have shifted their perception from travel as a 'want' to travel as a 'need'," added Kistner. "This positively impacts the leisure market as higher demand allows rates to continue the arduous march to pre-recession levels. Travelers getting away this summer – for work or pleasure – is good news for the industry and the economy."
The Pegasus View reporting on June 2011 bookings is available online and by free subscription at www.pegs.com. Data reported in The Pegasus View comes from billions of transactions processed monthly by Pegasus Solutions, the world's single largest global processor of hotel transactions. It is the only industry report to reflect data drawn from both GDS and ADS transactions, representing the business and leisure markets respectively for approximately 90,000 hotels worldwide.