Travellers are shifting away from last minute hotel bookings in preference of longer advance booking lead times, according to Great Hotels Organisation (GHO).

Published: 26 Mar 2010

Travellers are shifting away from last minute hotel bookings in preference of longer advance booking lead times, according to Great Hotels Organisation (GHO).

Research conducted by GHO found that in January 2010, 20 percent of hotel bookings made on GHO’s consumer website (http://www.ghotw.com) were booked less than two weeks before departure, a sharp drop in comparison to the same period last year, where 66% of hotel bookings were booked less than two weeks before departure, showing a shift in booking trends in favour of early booking discounts.

Last year, because of the unstable economic outlook and unsettling job prospects, travellers favoured last minute booking deals. However, as the economy slowly starts to emerge from recession, consumers are looking to travel in more cost effective ways, fuelling a rise in early bookings as this is when savings can be made.

In order to maximise revenue and profit hoteliers need to ensure they adjust their pricing strategies and costs according to booking trends.

“If booking lead time is increasing, hoteliers need to ensure they have plenty of early booking discounts with the right restrictions in place. An early booking offer can be used to build occupancy and can also have a minimum length stay imposed to justify the discounted rates,” said Vanesha Ramsamy, strategic revenue manager at GHO,

“The value-conscious consumer is searching for the best deals around and hoteliers should be aware of the rise in price comparison and consumer review websites where consumers can compare and contrast a large number of hotels. Sharpen your hotel’s online strategy and focus on building brand loyalty by keeping rate parity across all your channels.”