Travelers love the last-minute good deals, that's why sometimes they wait for hotels to flash special discounts and accommodation.
With travel sites like Lastminute.com and Trivago guestsare mostly at their advantage as it's cost-effective and they don't even worry about cancellation if their plans change.
For travelers a last-minute deal is like a jackpot, but what about hotels, did they get benefits too or did it affect the hotel revenue?
In this blog, we'll talk about the tactics used by hoteliers to fill the rooms at the last minute. And the implications of last-minute pricing.
So, grab a cup of coffee, and let's begin with our first question.
Last-minute bookings are like travel deals at the very last moment! It's like booking a hotel room just before your arrival.
This could be the last-minute trip or something that you at first didn't plan on doing or maybe you found an awesome discount.
The good news is that hotels often provide these bookings at lower prices, this is what makes the deal more attractive.
For hotels and airlines, this is a win-win situation to fill up the empty rooms quickly.
"According to studies, 44% to 56% of travelers schedule their leisure or business trips at the last minute."
However, have you ever thought about how hotel rooms are filled up so quickly?
Let's go through the steps in a little more detail.
Hotels understand that a high occupancy rate is key to a successful operation, thus they constantly look for new ways to drive revenue.
Here are 10 effective tips to boost last-minute bookings and fill empty rooms: -
Create special discounts and advanced booking rates within a certain period before guest check-in which would convince travelers to make last-minute bookings. And do not forget to update these discounts on OTA's as well to get better reach.
Design user-friendly mobile booking apps that simplify the search and booking of accommodation in real-time, so that travelers effortlessly search and book last-minute booking deals at their convenience.
"According to a survey 72% of last-minute bookings are made on mobile devices within 48 hours of a Google search."
Advertise flash sales and limited time offers by using email marketing, social media, and website banners to bring a sense of urgency among potential customers.
Create cancellation policies that are flexible with no or minimum penalties, thereby reducing the fear of travelers who were just not sure if they would be able to make last-minute bookings.
Customize marketing campaigns for business travelers who usually make last-minute bookings because of changing schedules or unexpected meetings and lack of time for planning.
Use correct keywords and phrases compared with last-minute bookings in all website content and page descriptions to bring up the website in search engine results.
Collaborate with event organizers to see how to provide special deals to attendees who look for last-minute accommodations and maximize profit when demand is high.
Use email, newsletters, and loyalty programs to keep previous guests in touch and encourage them to book on short notice as they receive special offers.
Make sure you are updated with your pricing and offers from other local providers so the necessary changes can be made if required and at the same time keep the business competitive for last-minute bookings.
Collaborate with travel agents and offer them good incentives and commission, connecting with them boosts quick booking, as they have good connections with larger agencies.
Such pro active ways may turn out to be solutions to the issue of filling last-minute reservations and maintaining high occupancy rates, both of which increase revenue.
But with every benefit comes some drawbacks too, The Below section will state the impacts of last-minute booking on hotels.
Booking at the last minute is no doubt is good solution to fill the rooms, but it can affect hotel revenue in the long term.
Travelers wait for such discounts resulting in the cancellation of advanced bookings.
This creates a lot of gushes in hotel management resulting in raised concerns among hoteliers.
Here are the top negative impacts of last-minute bookings: -
Last-minute booking can make the management of revenue difficult because hotels may have to change the rate of rooms on the spot to make them fill resulting in affecting the total revenues.
The risk of overbooking increases with last-minute bookings because hotels may accept reservations without awareness of real-time room availability, and this often results in guest dissatisfaction and compensation costs.
Managing last-minute bookings can make hotel operations difficult, particularly in peak hours, which can cause disturbances in services and allocation of resources.
Hotels adjust their flexible pricing strategies to stand out in such a market by adjusting rates according to the level of demand, competitor's pricing, and the market situation.
It becomes complicated to govern inventory when reservations are made at the very last minute because hotels have tomaintain the balance between meeting the needs of those who book in the rush and ensuring the inventory is available for future reservations.
Overall, Last-minute bookings can benefit sometimes but may harm in the long run. Be aware of the implications before accepting last-minute bookings.
It's beneficial to implement technologies to prevent last-minute overbookings,
With the help of BOTSHOT's software, you can maximize direct booking and easily handle last-minute overbookings.
But you all might be thinking that,
In today's hospitality industry managing last-minute bookings becomes a priority for hotels, who are trying to maintain their occupancy and maximize revenue.
As with this opportunity to fill empty rooms also places overbooking strain on the hoteliers with different channels.
But with the help of BOTSHOT's tools like Smart Booking and CreateWith hotels and resorts can overcome this challenge and turnthis obstacle into an opportunity to get the maximum occupancy.
With Smart Booking Guests can easily book rooms and pay with ease thanks to the features like website chatbot, payment gateway integration provides ease of booking and transactions within multiple currencies.
With CreateWith hotels and resorts can easily build SEO-friendly websites which boosts direct booking on hotel sites, resulting in growth.
This attracts guests and converts them to last-minute travelers with ease, maximizing occupancy and revenue. By providing a seamless booking experience and empowering hotels to showcase their offerings in a better way.
BOTSHOT helps hotels to reduce reliance on multiple channels and achieve greater profitability.
Collaboration with BOTSHOT can lead the way to remain profitable in the long run and continue operating successfully in the highly dynamic world of hotel management.