The travel and hospitality industry are often riddled with uncertainty. Among the many variables that self-caterers need to consider, lead times—the period between booking and arrival—stand out for their significance. Understanding lead times can be a strategic asset in optimising bookings and revenue. In this context, we delve into the recent trends in lead times, shedding light on the vital role played by different booking sources such as direct booking and booking channels.
Based on the data we’ve gathered for arrivals in June 2023, we can observe fascinating patterns in lead times from various channels.
Arrival Lead Times (June 2023)
Direct bookings tend to have the highest lead times, with a mean lead time of 170 days and a median of 129 days. On the other hand, channels like Airbnb and Booking.com register significantly lower lead times, with mean lead times of 84 and 75 days, respectively.
Last-minute Bookings: A Rising Trend and Your Opportunity
It’s worth highlighting the trend of last-minute bookings. When we look at the bookings made within a week of arrival, Booking.com leads with 23%, followed by Airbnb at 16%. Direct bookings, on the other hand, lag at 8%.
In the face of evolving customer behaviour, it becomes crucial for self-caterers to be present and visible where these last-minute bookings are happening – that is, on platforms like Booking.com and Airbnb. These platforms attract a diverse range of guests, including those who make plans closer to their travel dates.
Leveraging SuperControl’s Channel Manager
If your property still has late availability and is not listed on Airbnb or Booking.com, you’re missing out on capturing this segment of the market.
SuperControl’s Channel Manager allows you to easily advertise your property on multiple channels, including Airbnb and Booking.com, from one centralised platform. This not only broadens your reach to potential guests who prefer booking closer to their travel dates but also significantly reduces the time and effort spent managing multiple platforms separately.
By integrating with SuperControl’s Channel Manager, you can ensure real-time updates across all platforms, minimising the risk of overbookings and enhancing overall operational efficiency. It’s about working smarter, not harder.
Evolving Booking Behaviours: Year on Year Analysis
Interestingly, recent figures show that the mean lead time for direct bookings has decreased by 15% from 2022, while the lead times for Airbnb and Booking.com remained relatively stable. This trend indicates a narrowing gap in lead times between direct bookings and bookings made through Online Travel Agents (OTAs) like Airbnb and Booking.com. This data is consistent for all monthly arrivals in 2023.
Arrival Lead Times (%) June 2022 VS June 2023
What This Means for Self-Caterers
The shift in lead times for direct bookings underscores the increasing tendency of guests to book closer to their travel dates. This trend amplifies the importance of diversifying your booking channels. Relying solely on direct bookings might leave you with more significant vacancy risks due to the shrinking lead times. By leveraging platforms like Airbnb and Booking.com, you can access guests who prefer to book closer to their arrival date.
A Strategic Shift: Embracing Diverse Booking Channels
It’s essential to monitor and respond to these trends to stay competitive in the dynamic hospitality industry. As the gap in lead times between direct bookings and OTAs narrows, consider diversifying your distribution strategy. Adding your listings to booking channels can help you attract a broader range of guests and minimise the risk of vacancies, particularly for late availability.
Key Takeaways
Knowledge is power. Keeping a close eye on booking trends, understanding the data, and making informed decisions will ensure your property remains fully booked throughout the year. Harness the potential of these channels to maximise your occupancy rates and boost your revenues in 2023 and beyond.
