Corporate bookings off double digits in June

Hotel bookings in June for business and leisure travel fell off last year’s levels globally and in North America, while rates for both channels continued a steady climb, according to Pegasus Solutions.

Corporate bookings dropped by double digits worldwide and in North America, while leisure bookings were down by a smaller margin.

It was the combined group of regions outside of North America that realized reservation growth for leisure travel, returning 0.8% booking growth over June 2011. In the corporate market, global bookings dropped 10.6% over prior year as North America decreased 13.9%. Outside North America, corporate reservations volume was down 5.9%. The leisure market saw smaller declines of 5.3% for global bookings and 6.1% for North America.

“Corporations and consumers are thinking hard about travel,” said David Millili, chief executive officer of Pegasus Solutions. “Both are spending, as evidenced by the ongoing steady rise in rates, but it has to be the right spend. Corporations still see value in the face-to-face business supported by corporate travel, but are taking time to consider what trips to take, when to take them and whom to send. Consumers are no different. They’re committed to traveling, but they’re taking the time to rethink and reshuffle travel dates, destinations, trip length, activities and, of course, hotels.”

Business travel worldwide is set to decrease, according to Pegasus Solutions.
Business travel worldwide is set to decrease, according to Pegasus Solutions.

While the volume of bookings was down, rates delivered an impressive performance in June, rising globally and in North America for both the business and leisure markets. The global corporate market saw a nearly 3% increase for the month, as North American rates doubled that performance, growing an even 6% over last year. Leisure rates were up, though at a less significant rate, climbing 2.2% globally and 1.9% in North America.