Despite a gloomy start to 2021, with the return of lockdowns across the UK, Ireland and beyond, there is some activity, and a reason to be optimistic, according to Amadeus Demand360® and flight data. Amadeus only uses real time, on the books data to forecast occupancy, making it easier for hoteliers to take informed decisions when it comes to planning next steps.
A shift in booking window behaviour
In previous months, when domestic travel was leading hotel recovery, we noticed a shift in lead times with the average booking window shortening compared with previous years. On average, for the second half of 2020, our data showed that over half of bookings in the UK & Ireland were made within the 0-7-day window, with many even made on the same day of booking. In 2021, we’re still seeing an increase on the amount of bookings made during that time frame, with 58% of bookings still made last minute in the UK and 52% in Ireland. However, a newer shift in booking behaviour indicates that more travellers are now looking to book further out – with 20% of bookings in the UK now made three months or more in advance. This is up from 13% last year. Ireland shows a similar picture, with 22% of bookings currently made in this timeframe, a slight increase from last year.
Source: Demand360®, data as of 11 January 2021
There are two reasons behind what might be causing this shift. Firstly, unsurprisingly, most of us are feeling pessimistic about the future, with 62% fearing that the worst is still to come (Visit Britain). As a result, it makes sense that many are taking a cautious approach to booking holidays, opting to play it safe rather than sorry. However, in contrast, for those whose vaccination date is nearing closer, confidence is growing. As a result, many travel firms such as TUI and National Express are seeing a spike in bookings from those in the 50+ age range (BBC).
Adapting strategies in response
Now that we know there is potential demand coming from bookings made three or more months in advance – how can hoteliers use this to ensure they are the chosen ones for bookings?
Firstly, as always, it’s important to consider who your competition is when it comes to targeting available demand. Our data indicates that of the bookings made within the 90+ day window, almost a third of those bookings are for luxury properties in both the UK & Ireland. Research from Hotels.com found that a desire for more spontaneity is leading to an increase in luxury travel, with 17% of those surveyed booking five star stays for 2021. For hoteliers in this segment, this provides an opportunity to widen your reach with advertising that targets those outside of what you previously believed to be the target market or existing CRM.
Once you use data to understand who your competition is, it’s all about effectively communicating your property or brand’s value proposition. With so much on offer, why should a traveller book with you? Recent insights tell us that there are certain factors which appeal during the booking process now more than ever, such as the continued need for clear hygiene and safety factors. In the Amadeus Rethink Travel Study, we found that 4 in 5 say technology will increase their confidence to travel, for example through mobile apps and contactless payments. Use this to your advantage as you build campaigns which appeal to the needs of your target audience.
Source: Demand360®, data as of 11 January 2021
Finally, take the time to check where bookings are coming from. Throughout 2020, we saw a growth in Online Travel Agency (OTA) bookings. Currently, 36% of bookings in the UK come from this channel, and a further 32% from Direct. In Ireland, the proportion of OTA bookings rises slightly to 42%, and Direct drops to 34%. This split suggests travellers are using different channels to make bookings, so – if you haven’t done so already – adapt your channel mix to make sure you have presence across all major channels.
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