25 September 2006

Worldwide electronic hotel revenue up 13.7 percent in Q2 of 2006

According to TravelCLICK’s quarterly 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.

“The proliferation of the Internet drives the aggressive growth of brand website and key merchant sites, while GDS and travel agent related hotel bookings continue to show healthy 5-7 percent growth across global markets,” said TravelCLICK vice president - product management/eMarketing products John Hach.

“Hotels that understand these trends and their impact on hotel performance can build a stronger distribution strategy and execute with confidence to maximize electronic channel presence through integrated distribution technology, marketing and intelligence capabilities,” said Hach.

Observations for the market based on this latest data include: 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 programmes 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 (Average Daily Rate) channels tracking 30+ percent higher than its Internet counterparts; Top markets including New York, London and Hong Kong will continue to trend with their respective economies while new fast growth markets emerge into 2007, such as Shanghai, Beijing, Delhi and Bangalore.

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