GLOBAL leisure daily hotel rates have notched record growth this quarter despite a fall in booking growth, while business travel maintained prior levels for both bookings and rates.
According to second quarter data from Pegasus Solutions, leisure booking growth for June fell two per cent year-on-year.
But due to the substantial growth figures registered for April and May, the drop in booking growth for June still translates into a positive number overall for daily hotel rates, which posted 5.1 per cent for June.
“The performance we’re seeing can be attributed to the perfect formula for hotels: lower room supply with increased leisure and business travel demand,” said David Millili, CEO, Pegasus Solutions.
“The second quarter compared against prior year shows that while demand is present, hotels are also present with real distribution strategies.”
Meanwhile, corporate bookings for June were 0.7 per cent higher year-on-year. Rates held firm during the second quarter and June registered a slight drop of 0.7 per cent compared to the same period in 2012.
Looking ahead, Pegasus predicts that rates are likely to rise by over four per cent in July and August, but remain close to last year’s performance in September and October. Booking volume will be at or near prior year levels into early autumn.
Corporate bookings and rates are likely to be maintained but substantial gains over 2012 are unlikely. However, rates may pick up in September and October as the convention season begins.
