GDS continue its position as one of the highest ADR channels for hotels

September 25, 2006 |

According to TravelCLICK's quarterly eMonitor, the travel agent component of GDS bookings had a 7.6 percent increase in ADR and a 13.3 percent increase in revenue versus the second quarter of 2005. Travel agents also continued to be a key source of higher rate business for hotels.

Travel agents booking through a GDS account for the vast majority of total room nights and are a key source of higher rate business for hotels according to TravelCLICK’s quarterly eMonitor.

The eMonitor results indicate continued robust health for the hotel industry based on electronic distribution performance for the second quarter of 2006.

The data shows that worldwide electronic hotel revenue from the GDS and key Internet sites increased 13.7 percent over the second quarter of 2005. The number of electronic room nights booked for the second quarter increased 5.7 percent over the same time last year, while the Average Daily Rate (ADR) increased by 7.6 percent. The average length of stay for the second quarter 2006 was 2.12 nights, nearly the same as last year.

TravelCLICK takes this data and uses it to forecast trends in the industry. Using data from the latest eMonitor, TravelCLICK projects that travel agency room nights through the GDS will continue its growth trend surpassing 100MM room night by the end of 2006.

Bookings through GDS powered internet sites will continue to decline as merchant programs expand their reach globally and technology advancements make it easier for hotels to do business direct with online wholesalers.

The GDS will continue its position as one of the highest ADR channels tracking 30 percent plus higher than its Internet counterparts. Travel agent bookings represented 81.7 percent of total room nights.

The travel agent component of GDS bookings had a 7.6 percent increase in ADR and a 13.3 percent increase in revenue versus the second quarter of 2005. Travel agents also continued to be a key source of higher rate business for hotels.

The average rate for room nights booked through travel agents was 36.4 percent higher than the average rate for room nights booked via the Internet. Year-to-date for 2006, travel agent hotel room nights via the GDS were up 6.8 percent, driving a 6.3 percent growth in ADR from the same period in 2005. Internet room nights, sourced from consumer online transactions on Pegasus-powered third-party sites, showed a gain of 7.6 percent compared to the second quarter of 2005. ADR was up 7.8 percent for Internet bookings; revenue was up 16 percent compared to the same period last year.