Global hotel rates outperform year-to-date pace in November
DALLAS, Texas – The leisure and corporate hotel markets returned solid results globally for bookings and rate growth in November, according to data released today.
DALLAS, Texas – The leisure and corporate hotel markets returned solid results globally for bookings and rate growth in November, according to data released today. Most notably, global hotel rates outperformed both a strong October and the year-to-date pace, achieving growth of nearly +4.0% over 2010.
Global average daily rates (ADR) for November climbed higher than the year-to-date pace of +3.2% and October’s increase of +2.7%. On a global scale, November leisure bookings jumped +6.0%, up from October’s increase of +4.8%. Leisure performance was especially evident in North America, where bookings rose +7.1% over prior year and leisure ADR increased +4.8%.
“We attribute some of this market performance to reports of growing consumer confidence,” said Mike Kistner, chief executive officer of Pegasus Solutions. “However, we mainly view this as a combination of pent-up consumer demand and a commitment to travel. The corporate hotel market returned positive figures, but we’re seeing the most significant gains in the leisure market, where even outside of North America amid concerns of the European debt crisis, most markets saw some improvement over last month’s results.”
Global corporate bookings rose +5.4% over 2010, up from October’s growth of +4.0%, while rates increased +2.2%. Business on the books suggests more business trips for 2012, with bookings expected to outpace 2011 through February. Towards the end of the first quarter 2012 leading into spring convention season, there is potential for greater booking momentum while rates continue climbing back to pre-recessionary levels.