Hotel bookings will reach 2019 levels before the end of the year

Hotel technology specialist HotelHub estimates that bookings made through the platform will reach pre-pandemic levels before the end of 2022.

The company’s optimism is driven by a continued increase in global transactions in the fourth quarter of 2021.

The latest HotelHub index reveals that total global hotel transactions for December 2021 reached 61% of December 2019 volumes and more than doubled compared to December 2020.

This compares to volumes of just 21% of pre-pandemic levels in January 2021 and 31% in mid-2021. The upward trend started in August and continued to increase by 5-10% per month.

Hotel reservations in the United States were particularly strong, reaching 91% of pre-pandemic volumes in December 2021, compared to the same month in 2019.

European hotel transactions continued to increase in the fourth quarter of 2021, but are still below 2019 levels. Volumes in December 2021 reached 53% of pre-pandemic levels compared to the same month in 2019.

HotelHub has not seen a significant increase in reservation cancellations in the last month of 2021 despite the Omicron variant. The company said 23% of transactions were canceled in December, compared to a monthly average of 18% for the rest of the year. The average monthly cancellation rate before the pandemic was 16%.

The majority of HotelHub transactions worldwide were domestic reservations. In December 2021, only 15% of hotel transactions were for international travel, compared to 38% in December 2019.

Eric Meierhans, Chief Commercial Officer of HotelHub, said: “It is no surprise that the bulk of transactions in 2021 were domestic hotel bookings, but we are now starting to see a gradual increase in international transactions. Interestingly, the number of cancellations in December was not much higher than normal, despite the uncertainty of the Omicron variant. In most cities, our data also shows that hotels are still looking to drive demand by offering great rates. »

Data shows that average daily rates, ADRs, in key cities are around 20% lower than in 2019. In London, for example, the ADR is $223 compared to $287 in 2019, while in New York, the ADR is $320 compared to $379 in 2019. .

London-based HotelHub provides hotel reservation technology to a range of travel management companies, including American Express Global Business Travel, CWT and FCM.

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