Corporate travel booking volumes set new growth record

Thursday, 23 December 2010 00:57 - - {{hitsCtrl.values.hits}}

Both the corporate and leisure travel sectors set 2010 growth records over 2009 in November, according to new data released in The Pegasus View.

The report, based on billions of global transactions processed during the month by Pegasus Solutions, shows booking volumes through the mostly business global distribution systems (GDS) climbed +30.6%. Additionally, revenue for the mostly leisure alternative distribution systems (ADS) reached a year-high of +17.3% over 2009.

The business travel market surged in November 2010 after a brief slowdown in October, according to the report, which combines data from both the GDS and ADS. With the +30.6% year-on-year increase in booking volumes came a stable average daily rate (ADR) that remained at the +7.4% record growth rate achieved in August and September.

Forward-looking data suggested the trend in booking growth would continue through March 2011, accompanied by an average growth in ADR of +10% and a +5% increase in length of stay.

“There is definitely promise in the figures this holiday season. A year ago, we reported early indications of a tenuous recovery for the corporate travel sector as increases first seen in North America spread to other regions,” said Mike Kistner, Chief Executive Officer of Pegasus Solutions.

“Today, the corporate sector has evidenced a solid and convincing recovery worldwide across all variables – booking volume, revenue, ADR, length of stay and booking lead time. The leisure sector is also in an upswing with forward-looking 2011 figures pointing to December growth of about +10% based on bookings to-date.”

Pegasus’ leisure figures for November show bookings rose past October’s return to double-digit growth to an increase of +12.8% over 2009. While ADR held steady, edging to an increase of +4% globally, revenue through the channel increased by +17.3% over the prior year.

The look-to-book ratio eased from the high of +60% over 2009 seen in October to +50%, as more holiday shoppers booked their travel for the approximately 90,000 hotels distributed by Pegasus.