As the holiday season approaches, hotels are gearing up for a surge in travel demand. But not all travelers book their stays months in advance.
NB: This is an article from RateGain
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Many spontaneous bookers wait until the last minute, making quick decisions just days before their trip. This is where last-minute deals shine, offering hotels a way to fill rooms faster, gain more exposure, and stay competitive on pricing.
What are Last-Minute Deals
Last-minute deals offer a powerful way to boost hotel bookings by capturing spontaneous, price-conscious travelers quickly.
With real-time access to booking information, more travelers are opting for last-minute trips. Hotels can tap into this high-converting audience by offering same-day deals and specialized last-minute promotions. These offers not only cater to travelers with short booking windows but also significantly enhance your hotel’s visibility, driving immediate reservations and improving occupancy rates. The strategy is straightforward: last-minute deals efficiently fill your rooms.
Let’s dive into three key benefits of using last-minute deals and what it means for hoteliers this holiday season.
Benefits of Last Minute Deals
- Fill Rooms FasterToday’s travelers are increasingly comfortable with making last-minute decisions, which can significantly benefit hotels ready to meet this demand. In fact, over 40% of bookings across Expedia Group brands and B2B Distribution networks in 2023 took place between 0-3 days before the stay. By offering last-minute deals, your hotel can capture this high-converting audience who are primed and ready to book on short notice. This means fewer empty rooms, more bookings, and a faster turnaround on your inventory.
- Fill Rooms with More ExposureVisibility is key to winning last-minute bookings, and properties that rank higher in search results are far more likely to be chosen by these spontaneous travelers. With 87% of transactions occurring in the top 20 sort positions in search results, your hotel’s positioning on booking platforms can make or break your chances of filling rooms. Last-minute deals give you an edge by improving your web and app visibility, ensuring that your property is seen by more travelers at the right time.
- Fill Rooms at a Competitive PriceWhen it comes to last-minute travel, pricing plays a crucial role. Properties offering same-day deals typically see 20% more revenue than those that don’t. These deals allow your hotel to diversify its rate strategy by offering competitive pricing, attracting deal-hunting travelers, and reducing the risk of unsold rooms. Not only do last-minute bookings help fill gaps, but they also boost revenue potential during the busiest travel season.
What Does This Mean for Hoteliers?
For hoteliers, embracing last-minute deals means tapping into a rapidly growing market of spontaneous travelers. As the holiday season kicks into high gear, these deals can help you optimize occupancy, increase revenue, and stay competitive in a crowded market. Here’s why it matters:
- Higher Conversion Rates: Last-minute travelers are often decision-makers who are ready to book immediately, meaning they convert faster than those planning far in advance. Offering deals that cater to their needs helps ensure your hotel is their top choice.
- Improved Market Position: By enhancing your visibility and positioning through last-minute offers, you’ll be more likely to outrank competitors, especially when many travelers are making quick decisions based on availability and price.
- Revenue Boost: Flexibility in pricing with same-day deals not only helps you fill unsold rooms but also ensures that your hotel remains profitable during the most competitive travel periods.
By integrating last-minute deals into your strategy, you’ll be better positioned to capture bookings from a significant portion of the market. Whether your goal is to fill rooms fast, increase visibility, or maintain a competitive pricing edge, these deals are a win-win for both your hotel and your guests.
How Can Hotels Capture This Audience
Here’s how your hotel can capture this valuable audience and fill those last-minute vacancies effortlessly.
- Appeal to the Spontaneous Traveler: Last-minute bookings are no longer the exception; they are a growing trend. With instant access to information, many travelers are waiting until the final moments to decide where to go. By offering enticing, last-minute deals, your property becomes a go-to option for spontaneous, price-conscious travelers ready to book on the fly.
- Maximize Your Hotel’s Visibility: The key to attracting these last-minute guests is visibility. Hotels that rank higher on booking platforms and in search results are more likely to be booked. In fact, 87% of transactions occur within the top 20 sort positions in search results. Offering a well-placed, last-minute deal not only gets you in front of the right eyes but also enhances your chances of filling those rooms fast. Boost your hotel’s web and app visibility by crafting compelling last-minute offers that cater to the needs of holiday travelers.
- Stay Competitive with Flexible Pricing: When it comes to last-minute travel, pricing can make all the difference. Hotels that offer competitive, same-day rates are more likely to convert last-minute shoppers into paying guests. Properties with same-day deals see up to 20% more revenue than their competitors without these offers. This holiday season, diversify your pricing strategy with flexible last-minute offers that attract quick, high-converting bookings while minimizing the risk of unsold rooms.
- Capture Revenue from Shorter Booking Windows: With over 40% of bookings occurring between 0-3 days before the stay, it’s clear that today’s travelers are more comfortable with booking closer to their trip dates. Last-minute deals are not just about filling rooms—they’re about capturing a lucrative segment of travelers who are ready to make an immediate decision. By tailoring offers to this audience, you can optimize occupancy rates even in peak holiday periods.
- Act Fast, Earn Fast: Time is of the essence with last-minute bookings. Ensure your team is ready to act quickly on rate adjustments, availability updates, and promotional efforts. The faster you respond to booking trends, the higher your chances of converting browsers into guests. Holiday travelers are eager to find the best deals, and those deals are often fleeting. Make sure your property is ready to meet this surge in demand with flexible, time-sensitive offers that drive immediate revenue.
- Bundle for More Savings: For hotels that offer packages, bundling rooms with additional services like meals, spa treatments, or holiday experiences can make last-minute deals even more attractive. This gives your hotel an edge over competitors by offering more value for money, which is especially important during the holiday season when travelers are looking for convenience and cost-efficiency.
- Leverage Last-Minute Marketing Tools: Many platforms, including Expedia, offer specific last-minute deal sections that attract deal-seekers. Get your hotel featured in these areas to gain better exposure. These sections are designed to highlight discounts on hotels that have availability for immediate booking, helping you to stand out to the right audience. Be sure to use these tools to maximize your chances of filling your hotel as the holiday travel season ramps up.
- Turn Unsold Rooms into Revenue: Unsold rooms are lost revenue, especially during peak travel seasons. By introducing last-minute deals, you can turn potentially unsold inventory into a profitable opportunity. Keep an eye on your booking windows and identify periods where demand may dip, then introduce deals that will attract last-minute guests who might otherwise choose a competitor.
With last-minute travel becoming more popular, now is the time for hotels to embrace this trend. By offering timely, competitive deals, you can ensure your property stays visible, fills rooms, and maximizes revenue – even during the most spontaneous of booking windows. As the holiday season approaches, it’s never been a better time to implement a last-minute strategy that captures the attention of today’s fast-acting travelers.
