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GDS and Internet bookings continue to grow

Number of electronic room nights booked in second quarter grew 5.7% year on year

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 global distribution systems (GDS) and key internet sites increased 13.7% over the second quarter of 2005.

The report showed that the number of electronic room nights booked for the second quarter increased 5.7% over the same time last year, while the average daily rate (ADR) increased by 7.6%. The average length of stay for the second quarter 2006 was 2.12 nights, nearly the same as last year.

Based on its findings, TravelClick predicts that travel agency room nights through the GDS will continue its growth trend surpassing 100 million room nights by the end of 2006.

The eMonitor results also point to a decline in bookings through GDS-powered internet sites continue 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 channels tracking 30%+ than its internet counterparts. Meanwhile, 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.

“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% growth across global markets,” said TravelClick vice president of product management/e-marketing 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 maximise electronic channel presence through integrated distribution technology, marketing and intelligence capabilities.”

eMonitor results are compiled from TravelClick’s proprietary database, which is sourced from hotel industry electronic distribution data from the Amadeus, Galileo, Sabre and Worldspan GDS. TravelClick’s eMonitor also includes hotel bookings made through third-party travel internet web sites powered by Pegasus Solutions.

Travel agent bookings represented 81.7% of total room nights. The travel agent component of GDS bookings had a 7.6% increase in ADR and a 13.3% 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% higher than the average rate for room nights booked via the web.

Year-to-date for 2006, travel agent hotel room nights via the GDS were up 6.8%, driving a 6.3% 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% compared to the second quarter of 2005. ADR was up 7.8% for internet bookings; revenue was up 16.0% compared to the same period last year.

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