Combined GDS hotel booking performance at Worldwide Independent Travel Network (WIN) – the international business of The Advantage Travel Partnership – was up by 35% in the first quarter of the year with a 44% increase in revenues.
This follows the total volume of hotel bookings through its worldwide member TMCs growing to more than 2.2 million room nights in 2013, a 27% increase on the previous year. Revenue increased by 14% over the same period.
The group’s top 30 cities saw an increase of more than 41% in room nights in the first three months of the year compared to the first quarter in 2013.
Every city saw double-digit growth in room nights, from Houston at 15% to Belfast at 83%.
London, the largest single destination, saw a rise of nearly 10% in the average daily rate and a 44% increase in room night volume, while Aberdeen saw a 21% jump in average daily rate.
The highest average daily rate was recorded for Miami Beach at nearly $500 per night.
Twenty other cities’ average rates were over $300 per night including six in the US, two in Switzerland, two in Saudi Arabia and two in Nigeria. The only Asian city to feature was Hong Kong.
Neil Armorgie, chief executive of WIN, which has members in more than 40 countries, said: “Our excellent performance in 2013 and into 2014 is an indication of the increasing importance placed on hotels by our TMC members and improving rates we have been able to negotiate on their behalf.
“So far, each month of 2014 has seen our year-over-year global corporate booking volume increase over the same month in the previous year. This is fed by increased hotel conversion by our member TMCs and indicates corporate accounts have a willingness to invest in profit-producing travel.”
Armorgie added: “Occupancy recovery in 2013 is leading to higher rates in 2014. Strong tourism figures driven by North America, China (relaxed visa restrictions) and Europe will see hotels enjoying increased occupancy which will in turn drive rates higher.
“Under development in the USA is leading to increased prices. Asia continues to see supply outstrip demand which will keep price growth behind the average elsewhere in the world.
“Countries that performed poorly economically from 2010-13 (e.g. Greece, Spain, Portugal and Ireland), are seeing improved occupancy which will be followed by improving rates.
“Rate shopping tools like TripBam will become commonplace as corporates look for improved rates; corporates will need to be more flexible in their choice of hotel, to obtain keener prices.”
He added: “Hotel groups are starting to ‘talk up’ the market for 2015 and predicting increases in corporate rates for next year. TMCs should be keeping their corporate accounts briefed on market conditions and discussing corporate hotel rate expectations for 2015, especially in cities which are performing strongly.
“A consideration might be a two-year deal to try to cap increases and also negotiating added value benefits (e.g. high speed Wi-Fi, breakfast, parking, etc).”