The title might seem like a science fiction dream. However, it’s not, it’s today’s reality. The real question is whether your hotel has embraced the reality. If you’re still sitting on the fence, perhaps a few fun facts will push you off the fence and set you up for solid footing here in reality.
NB: This is an article from Groups360
Subscribe to our weekly newsletter and stay up to date
Before we get to the facts, let’s look at some of the myths associated with instant group bookings:
Myth: Only my sellers can offer the customer the best rate.
Fact: Technology can generate a better rate than sellers in most instances. It can react faster and since it has none of the emotional components so often involved with selling, it can also possibly generate higher rates.
Myth: Technology is trying to replace sellers.
Fact: Technology is trying to make your sellers more efficient. By allowing smaller groups to book instantly, sellers are free to hunt for larger business.
Myth: Customers want a personal touch.
Fact: Customers want what they want when they want it. For certain types of groups, that means they want to book while it’s top of mind, not when your sellers are free to get back to them.
Myth: We maximize and stack our business to get the right mix. If customers book online, it will destroy our efforts.
Fact: Technology allows you to control rates and availability. If you have done that part right, instant online bookings will mesh with your efforts seamlessly.
In 2023, 43% of all hotel guest rooms were booked online
All of these add up to one thing. Technology is making it easier for hoteliers to drive more business and ultimately more profits.
Just the Facts
Let’s look at some of the facts around instant group booking to see if that will make it more intriguing. There are three main areas we’re going to focus on in this first part:
- Booking Window
- Booking Day
- Time of Booking
BOOKING WINDOW
62.5% of instant bookings occur 16-120 days from arrival. For most group heavy hotels, this is typically outside of normal group booking windows. Additionally, 81.7% of these bookings have less than 40 total room nights. The average rooms on peak for instant bookings is 14.
These bookings are smaller and book inside traditional booking windows. The question to ask: Should your sellers even be investing their time in small bookings that are perfect for a self-service model?
Instant bookings are ripe for your revenue management process to yield and manage in much the same way you already effectively manage transient bookings. This frees up your sellers to continue the hunt for larger business and focus your service team on delivering a successful stay.
BOOKING DAY
Consumers are generating bookings Monday – Friday (95.3%). Tuesdays are the highest booking day of the week. Some might make the argument that this is more reason why sellers should be involved in these bookings. People are booking on weekdays which means they want assistance. However, this view changes when we shift to look at the next focus point.
