Electronic Revenue Up 16.8% in Q1 2007, Says TravelCLICK

Quarterly eMonitor Reports Annual Growth for Room Nights at 5.7 Percent

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. October 14, 2008

CHICAGO, IL, August 6, 2007. TravelCLICK's quarterly eMonitor results indicate continued steady health for the hotel industry based on electronic distribution performance for the first quarter of 2007. The data shows that worldwide electronic hotel revenue from the Global Distribution Systems (GDS) and key Internet sites increased 16.8 percent over the first quarter of 2006. The number of electronic room nights booked for the first quarter increased 5.7 percent over the same time last year, while the Average Daily Rate (ADR) increased by 10.5 percent. The average length of stay for the first quarter 2007 was 2.11 nights, nearly the same as last year.

eMonitor results are compiled from TravelCLICK's comprehensive proprietary database, which is the exclusive source of hotel industry electronic distribution data from the Amadeus, Galileo, Sabre and Worldspan GDS.

The database of electronic distribution performance provides a comprehensive foundation for data analysis and trend forecasting that is used by the global hospitality industry in the development of integrated distribution strategy.

Observations for the market based on this latest data include:

---|Hotel bookings through electronic channels are on pace to generate more than 120 million room nights this year.

---|In the first quarter of 2007, luxury hotel room nights reserved through travel agents increased 15 percent and surpassed $360 per night in ADR.

---|In nearly every segment and top destination market, electronic bookings and ADR continue strong year-over-year growth.

"The luxury hotel market is benefiting greatly from travel agent-generated bookings to sustain high levels of ADR growth," said John Hach, Vice President of eMarketing Products at TravelCLICK. "The ADR growth and room night increase are creating a more than $100 per night 'wall' between the luxury and upscale market segments. Highly targeted advertising strategies are vital to differentiate luxury properties that are vying for the large ADR opportunity within the travel agent channel."

Travel Agent Component

Travel agent bookings represented 81.2 percent of total room nights. The travel agent component of GDS bookings showed a 10.7 percent increase in ADR and a 15.8 percent increase in revenue versus the first quarter of 2006. 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 for the first quarter of 2007 was 43.6 percent higher than the average rate for room nights booked via the Internet for the same period last year.

Internet Component

Internet room nights, sourced from consumer online transactions on third-party websites powered by the GDS and Online Distribution Database (ODD), showed a gain of 10.7 percent compared to the first quarter of 2006. ADR was up 11.4 percent for Internet bookings, and revenue was up 23.4 percent compared to the same period last year.