In light of the 100,000-plus flight cancellations during the week of April 14-21, due to the eruption of Iceland volcano, Eyjafjallajokull, Pegasus Solutions has issued a special edition of The Pegasus View.
This special issue details the drastic change to the European hotel industry, due to the shutdown of airports and stranding of thousands of travelers. Pegasus' raw data indicates that the aviation industry was hit the hardest financially, while some European hotels saw triple digit jumps in revenue.
The report taps Pegasus' GDS and ADS data, comparing European reservations from the week of April 14 to the same week in 2009. Some numbers show drops in length of stay (down 22 percent on April 17) while others show positive results.
Mike Kistner, CEO of Pegasus Solutions, says "This period saw a substantial rise in cancellations, peaking at more that 508 percent on Sunday the 19. However, our analysis of activity by date of arrival also saw increases in bookings of as much as 135 percent, with an accompanying rise in average daily rate, which has been the bane of the hotel industry of late. Increased walk-in rates paid by stranded travelers boosed ADR more than 10 percent over 2009 for four days straight, allowing net revenue for the period to increase as much as 120 percent. Stressful? Yes. Profitable? you bet."
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