First Quarter Worldwide Hotel Revenue Up 12.9% from Electronic Channels According to TravelCLICK
CHICAGO, TravelCLICK's eMonitor results for the first quarter of 2006 show that worldwide electronic hotel revenue from the Global Distribution Systems (GDS) and key Internet sites combined was up 12.9%.
Electronic room nights for the first quarter increased by 7.6% from the same time last year, while ADR increased by 4.9% contributing to a revenue growth of 12.9%. The average length of stay for the first quarter 2006 was 2.14 nights, the same as last year.
"Consistent with projections, the travel agent channel continues to show consistent growth each quarter while securing higher ADR bookings for hotels," said John Hach, Vice President of Product Management - eMarketing Products for TravelCLICK. "Using this proven channel, hotels are optimizing their GDS performance with an enhanced promotion strategy that not only distributes rates and inventory on the GDS, but also drives demand and ensures ideal placement. This stable growth is ensuring GDS as an important element of a hotel's overall integrated distribution strategies including all online channels – GDS and the Internet."
eMonitor results are compiled from TravelCLICK's comprehensive database, which is the exclusive source of hotel industry electronic distribution data from the Amadeus, Galileo, Sabre and Worldspan GDS. TravelCLICK's eMonitor also includes hotel bookings made through third-party travel Internet websites powered by Pegasus Solutions.
Travel Agent Component
Travel agent bookings remained the dominant source of GDS hotel e- business, representing 84.9% of total room nights. The travel agent component of GDS bookings had a 5.0% increase in ADR and a 13.9% increase in revenue versus the first quarter of 2005. Travel agents continued to be a key source of higher rate business for hotels. The average rate for room nights booked through travel agents was 37.1% higher than the average rate for room nights booked via the Internet.
For the first quarter 2006, travel agent hotel room nights via the GDS were up 8.5%, driving a 13.9% revenue growth from the same period in 2005.
Internet Component
Internet (consumer online) room nights displayed a gain of 3.0% compared to the first quarter of 2005. ADR was up 2.7% for Internet bookings; revenue was up 5.8% compared to the same period last year.
First Quarter 2006 Room Nights % Change ADR % Change Total GDS and Pegasus Hotel e-Commerce 29,868,494 7.6% $139.61 4.9% Travel Agent Component 25,354,588 8.5% $145.57 5.0% Consumer Internet Component 4,513,906 3.0% $106.16 2.7%
GDS Performance by Market Segment
Results for the first quarter of 2006 by industry market segment are shown below for GDS bookings only. All market segments had increases in both room nights and ADR compared to the first quarter of last year.
First Quarter 2006 Market Segment Room Nights % Change ADR % Change Luxury 817,210 10.8% $327.52 3.8% Upscale 9,981,351 3.9% $174.61 6.0% Mid-Scale 11,369,268 6.6% $112.88 5.2% Economy 2,148,822 11.4% $79.56 7.4%
Top Destination Markets
The top ten worldwide destination markets in room nights for GDS and Pegasus third-party powered websites, in order, were:
First Quarter 2006 Top Destination Markets Room Nights % Change ADR % Change New York 1,303,401 6.5% $225.15 8.0% Los Angeles 1,096,429 6.1% $147.92 9.1% San Francisco/ Oakland/San Jose 962,253 7.6% $147.33 7.3% Washington/Baltimore 875,910 1.0% $172.32 9.3% London 840,826 13.7% $231.40 -4.5% Chicago 709,833 9.1% $133.06 8.7% Dallas 605,663 9.0% $114.86 8.2% Atlanta 534,574 4.6% $120.90 8.6% Houston 468,474 12.6% $122.33 10.8% Boston 426,749 8.1% $143.08 4.0%
To receive a free listing of first quarter results by top 50 cities worldwide in electronic room nights, please email [email protected] . Up-to-date GDS hotel booking summaries by local market are available at / .
About TravelCLICK | TravelCLICK is the leading provider of hotel business process management (BPM) solutions that drive long-term profitability. TravelCLICK helps hotels maximize asset ROI by combining innovative market analysis and proven industry best practices with advanced technology to develop and implement high-return strategies. The company offers a full set of solutions including reservations and distribution management, intelligence-based decision support and marketing services. Established in 1996 and headquartered in the Chicago area, TravelCLICK has over 12,000 customers in more than 140 countries.
Katrina Pruitt-Andrews
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