The corporate hotel market saw global bookings increase by 8.8 per cent in June, according to data released by Pegasus Solutions.
Reinforcing healthy gains made overall in the first half of the year, the growth in business travel bookings could potentially climb to +15 per cent through August, and possibly higher into the third quarter, revealed the latest Pegasus View.
“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 six per cent over 2010.
Leisure travel bookings, those made through online channels, grew by +7.3% over prior year, nearing the +8.2 per cent year-to-date pace.
Global ADR grew nearly five per cent 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 ten per cent 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.
“Travellers getting away this summer – for work or pleasure – is good news for the industry and the economy.”
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