The Leading Hotels of the World, Ltd. Reports Strong Production for First Quarter 2010
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The Leading Hotels of the World, Ltd. Reports Strong Production for First Quarter 2010
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Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2010-04-28
Luxury hospitality organization generates hotel sales of USD 140.9 million, an increase of 27% over the same period in 2009
The Leading Hotels of the World, Ltd. achieved significant growth in production in the first quarter of 2010. The company generated hotel sales of USD 140.9 million, an increase of 27% over the same period in 2009. Based on a same store analysis, the growth jumped to an even more impressive 30%.
Demonstrating that customers are ready to spend for what they consider true quality and value, the average daily rate across the portfolio improved sharply from the previous year, registering at USD 432 at the end of the first quarter -- an increase of USD 53 or 14%.
Company President and Chief Executive Officer Ted Teng attributes the recent increases to the company’s intense focus on driving business to its members. He is pleased with the accomplishments and concerted efforts of Leading employees, as well as the great collaboration of member hotels.
Mr. Teng commented, “We are very encouraged by the positive results we have achieved for our member hotels. We have made sure to adapt and operate nimbly by introducing new initiatives, with which we have been able to outpace the overall improvement in the market.”
A look at the results of the company’s core marketing programs demonstrates that increased production has been made through a number of these initiatives. First-quarter revenue for the leisure travel segment reached USD 52.8 million, a 32% increase over last year. New resort-specific programs that contributed to the growth in this particular area included Leading Golf and Leading Villas. Leading Spas also enjoyed a sizeable boost in revenue year-over-year. The longstanding and high-rated Leading Suites program saw a significant 74% increase in sales, illustrating further the willingness of customers to upgrade to more spacious accommodations, as well as the strengthening of family travel.
Leaders Club, Leading Hotels’ loyalty program also played a role in this dramatic lift. Revenue for first quarter 2010 increased by 39% to USD 17.6 million.
Furthermore, an in-depth channel analysis of production figures has revealed that revenue from voice reservations has increased by 34% to USD 36 million, a rise tied to the company’s dedicated efforts to improve the call conversion rate at its reservations centers.
Broken down by region, total business originating out of the United States accounted for 45% of the increase.
An overall analysis of the top producing countries indicates that, along with the United States, the United Kingdom, Germany, Brazil, Australia and Italy are among the top revenue generators, with year-over-year growth ranging from 15% (Italy) to 84% (Australia).
From a destination standpoint, travel to Europe, the Middle East and Africa increased on a revenue basis by 34% from the same period in 2009, while business to the Americas and Asia Pacific grew by 23% and 31% respectively. The highest-grossing destinations included the United States, Italy, the United Kingdom, France and Switzerland with growth ranging from 16% (UK) to 54% (Italy).
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