Ash cloud created many extra hotel bookings than cancellations, says Pegasus

07 May 2010 by
Ash cloud created many extra hotel bookings than cancellations, says Pegasus

Additional bookings and revenue from passengers stranded from the ash cloud flight ban greatly exceeded that lost from cancelled inbound trips, according to hotel technology provider Pegasus Solutions.

Although the week of 14-21 April saw a substantial rise on cancellations, peaking at more than 508% on Sunday 19 April - compared to the same period last year - Pegasus said that there was an increase in bookings of as much as 135%, with an accompanying rise in average daily rate.

"Increased walk-in rates paid by stranded travellers boosted average daily rate (ADR) more than 10% over 2009 for four days straight, allowing net revenue for the period to increase by as much as 120%," said Pegasus chief executive Mike Kistner.

The impact was similar across most of the major European markets, although there was a more negative effect on net bookings in the UK.

The report said that this reflected the relative isolation of the UK to the mainland with only the Eurotunnel providing high volume, non-air bound access to destinations.

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By Janet Harmer

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