According to data from Pegasus Solutions, global
business travel net revenue grew by +12.2% in July 2011, while
global leisure travel revenue increased +8.6%.
The report, which
includes extra analysis of daily bookings through 14 August, shows
resiliency in both the corporate and leisure markets despite the
US credit downgrade by the S&P on 5 August.
The
corporate travel recovery continued in July in the face of
uncertainty about the financial markets regarding the 2 August US
debt default deadline. Bookings grew by +5.8% over 2010, while
global ADRs gained momentum over June’s pace, rising by +6% over
the year before.
“Unlike events that
may put the personal health and safety of travelers at risk,
negative and uncertain financial news did not compel travelers to
cancel planned trips, whether they had already booked or not,”
said Mike Kistner, chief executive officer of Pegasus Solutions. “Long-term strain could ultimately lead to a slow-down in the recovery, but in the short-term, it is events
like earthquakes and hurricanes that will have the most immediate
effect on bookings, though on a more regionalized level. It is
good news for the travel industry that travelers failed to ‘catch’
the nervousness of investors.”
Leisure travel
bookings grew by +3.1% over 2010 globally, which did represent a
slightly slower pace than June growth. However, leisure ADR grew
by +5%, up from June’s +4.7% and two points higher than the
year-to-date pace of +3%. The solid ADR counteracted slower
booking growth to lead to an +8.6% gain in leisure revenue over
2010.
Looking forward, leisure booking growth
slowed slightly during the week of 8 August, although the pace
seemed to improve toward the weekend. Through the end of 2011, the
leisure channel is expected to improve over 2010 in terms of
bookings and ADR. GDS channel activity shows that corporate travel
demand will continue to drive more bookings with steady ADR
growth.
The Pegasus View comes from billions of transactions processed monthly by Pegasus
Solutions. It reflects data drawn
from both GDS and ADS transactions, representing the business and
leisure markets respectively for approximately 90,000 hotels
worldwide.
See recent travel news from:
Travel News Asia,
Utell,
Pegasus Solutions,
July 2011
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