Finance & DevelopmentMarket ReportsLeisure Reservations Surged in April

Leisure Reservations Surged in April

DALLAS—Pegasus Solutions has issued data showing that the leisure market in North America surged ahead in April by an impressive +7.0 percent, surpassing the global rate of +6.2 percent. Corporate bookings struggled to maintain the record global pace of +8.8 percent with a more modest +5.0% increase over April 2012.

“The region’s evergreen destinations like New York and Los Angeles remain strong for business and leisure. But, current transactions evidence double digit year-over-year bookings growth through August for North American leisure destinations like Mexico City (+51.1 percent), Nashville (+19.7 percent), Denver (+15.8 percent) and Portland (+10.3 percent),” said David Millili, chief executive officer of Pegasus Solutions. “Domestic demand is delivering the most significant portion of these bookings, followed by neighboring Canada and Mexico. For certain cities, the UK, Germany, Japan, and Australia are also helping fuel growth.”

The positive demand results were mirrored in the average rates paid, where North America’s corporate rates came within a mere -0.2 percent of 2012 in April. Global rates stayed a slim +0.1 percent ahead of last year. Leisure market rates in North America jumped +3.3 percent during the month, significantly beyond the +1.2 percent rise seen at the global level.

“The investment community is taking a hard look at the global hospitality market this week, which, by all indicators, is performing well for both channels in terms of bookings and rates,” added Millili. “For hotels in North America, we’re seeing the corporate market fall short of the leisure market’s impressive run.”