In recent weeks in our conversations with hoteliers across the UK and Ireland, and the same theme keeps coming up: demand is changeable. Not awful, not amazing, just unpredictable enough to make life that bit harder.
NB: This is an article from Right Revenue, one of our Expert Partners
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Here’s what’s standing out right now:
Occupancy looks steady on the surface, even improving in some cities…but scratch beneath the numbers and you’ll see a very uneven picture. Regional and rural hotels in particular are really feeling the squeeze.
Booking windows are doing something strange – shorter and longer at the same time.
Lots of last-minute decisions, more cancellations and far less short-term visibility, while at the same time some hotels are seeing pick-up much further out than usual.
So… make sure you are noticing future demand patterns changes, as revenue can be lost without you even noticing it is too late.
Leisure demand is still helping, especially weekends, short stays and experience-led breaks. But domestic overnight trips have dipped year-on-year, meaning it’s no longer the easy win it once was.
And the big one: profitability is under pressure.
Costs are up. Rate growth has flattened. Even with solid occupancy, margins are under real pressure.
None of this is doom and gloom .. but it does mean strategy and smart pricing matter more than ever.
So if you’re sitting in the office today thinking, “Why aren’t these numbers behaving the way they should?” …… please know you’re not alone. The market is shifting quickly, and not always predictably.
My advice?
- Watch your next 14 days closely -and your 6–9 month pick-up too
- Really understand where demand is coming from
- Stay flexible with your pricing
- And whatever you do, don’t ‘set and forget’ – this is a hands-on market
Small, steady decisions will get you through this phase.
