Covid-19 did not invent shorter booking lead time, but it did keep them.The hotel industry noticed that booking lead times were decreasing over time before the pandemic. This was due to changes in guest behaviour and their lives. The rise of OTAs has allowed guests to have more control over their hotel stays and getaways thanks to technology.Revinate reports that nearly half of all 2018 bookings were made last-minute, meaning they were made within seven days of check in. The global average lead time for bookings was 24 days pre-Covid. We need to consider all aspects of the pandemic's impact on our spending habits and how they have changed since then in order to get a better understanding of the guests living in post-pandemic times. Where are people in the current consumer trends?First, people live more flexible lives. 44% more people work remotely. This is because people now know that they can work remotely from anywhere, so they have more time for fun and more options for weekend getaways.People also want convenience. This is not a major shift in the way people are used to pre-Covid, but it is important to recognize this given that there are shorter lead times. People no longer have to book months in advance for stays, especially domestically. People may still prefer to book with you in a shorter amount of time than they did months ago, even if there is no up-and-down lockdown rollercoaster.To see how guests' habits have changed over time, we compared our data from 2019 to 2021. This data will help us to predict where the future may take us. It can also help us plan our revenue and marketing strategies based on interesting guest behaviour.In 2019, the average booking lead time for all our clients in Ireland and Northern Ireland was 49 days. The average lead time for bookings in 2019 was 49 days. This is compared to the average lead time in January, February, 53 days, March (49 day), November (49 day), and February (61 days). The shortest lead time was in the summer months with the shortest being July (35.5 days).We are all aware that global lockdowns, closures, and reopening announcements have had an impact on the availability of bookings and lead times. We looked at the booking lead times data of our clients. People booked the most in advance in February (134 Days), and the least in advance in June (44.2 days).Comparing June 2021 to June 2020 and June 2019, it is clear that June 2020 was the most booked month in advance (59 days). People booked the shortest amount of time in advance in June 2019, which was 40 days, compared to June 2020, which was 44 days.Parallels drawn with cancellation patterns changingHotel cancellation rates have been on the rise since then, due to an increase in book now, pay later. One positive thing to note is that cancellations are on the rise, but the book direct channel has the lowest cancellation rates.The average cancellation rate has moved from 11.2% in 2017 to 12.8% in 2018, and 12.3% in 2019, with an average of 12.8% in 2018. While 2020 is not comparable to previous years, it can be compared to 2020. However, in the interest to curiosity, the 2020 cancellation rate was 35.9%. For 2021, it is at 31%.This is why it's important.We need to constantly monitor data, both in terms of cancellation rates and booking lead times. It's impossible to plan everything as efficiently as we used. It is important for hoteliers to be able to grow and move with their guests. Being hyper-aware of data will allow you to do this.How can you reduce booking lead time?Convenience is keyReferring to the earlier point about convenience, make sure that your purchase path is as simple, clear, and straightforward as possible. Your guests should know that booking directly is the best and most cost-effective way to go. You'll be able to negotiate the best deal for them!If a guest leaves the booking process halfway through, make sure that your booking engine can retake them. It should be possible to either create a pop-up that takes them back to your booking window, or to send them an automated email to get them back where they need to be.Are you able to get to know your guests enough?One of the keys to success is knowing your guests. Since the pandemic, we've been talking a lot about new guests and how important it is to take the time to get to know them. (For more information, see: Building guest personas that reflect a complex world and Attracting staff to your hotel). You can segment your guests and tailor your communications to their preferences and habits by getting to know them. A good CRM system can help you with this. You can target them more effectively by analyzing the lead times of different guests (are they old, young, remote workers etc.) and finding new guests that match their demographic.Remember that the world and its guests are constantly changing, so be prepared for shorter booking lead time. For any additional advice, please email us at help@netaffinity.comwww.netaffinity.com
