For many hotels and resorts, shortened booking windows represent a significant challenge. Guests are waiting until the last minute to book, often holding out in hopes of a better deal or because travel plans have become more spontaneous.
NB: This is an article from gcommerce
Subscribe to our weekly newsletter and stay up to date
And often, it works. As a property nears a low-inventory period, hotels will sharply reduce rates, reinforcing the guest’s belief that waiting until the last minute leads to savings.
While this can fill rooms, it also puts pressure on your revenue strategy, limits your ability to forecast accurately, and may leave potential revenue on the table.
The good news? There are techniques you can deploy to help you extend your booking window, giving you more lead time, steadier occupancy, and healthier average daily rates (ADR).
Here’s how to make it happen:
1. Analyze historical data to understand your current window
Before you can extend your booking window, you need to know exactly what it looks like today. Use your PMS and revenue management tools to track:
- Average lead time by season
- Lead time by segment (corporate, group, leisure)
- Market trends and competitor lead times
Understanding when guests actually book allows you to target specific opportunities for improvement. For example, you might discover that leisure guests in summer book 14 days out on average, while corporate travelers book 30+ days in advance.
2. Use targeted pricing to encourage early commitments
A dynamic pricing strategy can nudge guests to book sooner. Instead of offering the lowest rates at the last minute, flip the script:
- Early-bird discounts: Offer slightly lower rates for guests who book a set number of days in advance. Target discounting just 25% of the discount you typically would offer to fill short-term need periods.
- Rate fences: Create packages that add value for early bookers, such as breakfast or free parking.
- Advance purchase offers: Require prepayment for the best price, locking in revenue earlier.
- “Best Rates of” messaging: Announce your best rates of the season or even the year. Train your audience to understand that they won’t find a better rate than the one they are currently looking at at any other time of the year.
Pro tip: Make sure these rates are visible and compelling across all your distribution channels, especially your direct booking site.
