Global business travel hotel bookings grew by 10.2 per cent over prior year in August, up from July’s 5.8 per cent increase, as reported by Pegasus Solutions.
Bookings for both the business and leisure markets showed continued resiliency despite the US and European economic debt and credit crises that overshadowed the month.
Corporate travel markets also enjoyed continued rate growth in August, increasing 4.7 per cent over prior year.
Leisure travel volume grew on a global level by 4.2 per cent, gaining pace from July’s rate of 3.1 per cent.
Average daily rate (ADR) for leisure bookings grew 3.7 per cent, outpacing the 3.1 per cent year-to-date growth average.
Certain regional leisure markets did experience sensitivity to local economic pressures, however the overarching trend was solid growth, according to Mike Kistner, chief executive officer of Pegasus Solutions.
“While the hotel industry is strongly influenced by the economy, leisure and business travellers don’t take their marching orders from it,” said Kistner.
“We saw financial markets experience wild swings last month, but in our sector, we saw corporate and leisure travel markets not just continue to grow, but actually gain momentum, powering through the bad news of the US and European debt and credit crises.”
Forward-looking bookings data, which is based on actual business on the books, shows corporate travel continuing to recover at the same or greater pace, with potential for significant growth in November.
This is seen as a positive sign for the upcoming meetings and conventions season that is likely helping drive the expected ongoing rate increase for the corporate market.
Leisure market forward-looking data, based on bookings made through online channels, will progress overall with growth rising for the November and December holiday season.
Consumers are still mindful of budget, making compromises on distance, destination and length of stay, which presents an opportunity for hotels to conduct regional/local campaigns to attract more of these savvy bargain-hunters.