It’s so easy to book goods and services online that many people put off making buying decisions until the last moment. This may be because they enjoy a sense of spontaneity, or because they’re monitoring the market for the best deal that may pop up. This certainly applies to the hospitality industry, where discretionary leisure travel is sometimes a ‘treat’ that many give themselves. A weekend city break may be on the cards, but whether that’s Amsterdam or Copenhagen is perhaps not the most important factor.
Juggling the best flight deals set against a well-priced hotel may well be the decider as to which city is in the travel plans. So, potential guests often ‘wing it’ and leave their decision-making until the last possible moment. There are also times when hotel rooms are needed last-minute because travellers have their plans changed by circumstances, such as layovers, or emergencies. In this article, we’ll show you some tips and strategies so you can take advantage of last-minute travellers and grow your revenue in the upcoming season.
What is a last-minute booking?
Last-minute bookings often stem from sudden travel plans, business needs, or spur-of-the-moment decisions to take a quick getaway. Typically, last-minute bookings occur within a 0 to 3-day window before the stay, with many travellers booking on the same day or the day before their check-in.
From the hotelier’s point of view this lack of certainty might be stressful, but there are ways to benefit from the last-minute phenomenon. The most obvious is to fill otherwise unbooked rooms and therefore increase profitability. An empty room erodes the bottom line, but an occupied room - even at a discounted rate - helps absorb fixed hotel costs. Responding to the last-minute market, and actively promoting your hotel in this area can boost profits and open the way to new opportunities.
Strategies to fill hotel rooms last-minute
Taking a proactive approach to the unpredictable whims of the market means that your hotel can be more resilient, and hoteliers can take more control of the situation with a number of effective strategies.
- Real-time inventory management: Inventory management and channel synchronisation are crucial for handling last-minute (late) bookings effectively. By synchronising room availability with a well-working Channel Manager, you can eliminate the risk of overbookings. The real-time update allows you to confidently accept last-minute reservations, knowing that the room is genuinely available.
- Dynamic and intelligent pricing tools: They are now a fundamental part of the hotel industry. A smooth-functioning Property Management System which incorporates Dynamic Pricing allows you to change your prices dynamically and have a strategic advantage when it comes to pricing. Taking it further, with an intelligent revenue management system, your prices will be automatically adjusted using an algorithm which collects data from various databases and industry trends to optimise prices. This way, you can be sure that your prices are always accurate and competitive, while increasing profit.
- Mobile-friendliness: people are always on the move and often searching for last-minute accommodation on their smartphones. Your hotel has to have great SEO, super-easy navigation and great user interfaces. Make it easy for someone searching for that last-minute booking, and you’re much more likely to get their business. If you have a free Google business profile, then geo-location also allows visibility of your hotel in highly localised searches by potential guests who are searching for accommodation in the area.
- Automated solutions: Last-minute bookings usually mean guests are in a hurry or showing up late. In situations like this, the last thing they want is to wait around and have communication issues with the host. That’s where modern, automated solutions come in handy. Instant booking confirmations, online check-in and check-out and automated email templates can keep things running smoothly, while ensuring a great guest experience.
- Metasearch sites: Get onboard with platforms that specialise in last-minute bookings to ensure that your hotel is listed. These include Trivago, Booking.com, HotelTonight, and - of course! - lastminute.com. Add those limited-time-offer deals, such as ‘last two rooms left at this price’ for extra persuasion, and you are driving guests towards making their decision.
- Partner with airlines and local travel companies: for the times when there really are emergencies or major delays, and accommodation is needed urgently. Your hotel should come at the top of their list as a reliable solution for unfortunate situations where travellers need a room at ultra short notice. Don’t wait for such times - prepare the way by actively approaching partners.
- Last-minute offers: A special discount is a great driver towards decision-making for guests. If they are searching your website for availability, and you have the ability to show a pop-up with flash-sale offers that are good for only a specific time, this can be a real incentive to last-minute bookers. Or you can even contact past guests to create special offers and discount packages. It’s not just about sitting around waiting for last-minute bookings to materialise. If you can see a low period coming up with reduced bookings, then marketing that reaches out to previous guests can really work. Offer three nights for two, or room upgrades to attract guests back. You already have a relationship with them, so now’s the time to leverage it and capitalise on their good opinion of your hotel.
- Social media: show awareness of seasonal and other special situations. Is there a major sporting event or concert happening nearby? Christmas markets, festivals? Whatever is happening, surf the news and create snappy, aware social media posts that people will hook into: ‘Coming to the concert? Stay with us!’ As with all marketing, knowing your customer is vital, and social media helps you have a conversation with your target market.
- Encourage walk-ins, depending on the location of your accommodation. If you are ready to accept spontaneous travellers, place a clear sign outside your accommodation with your actual availability. Making it easy for passersby to spot your availability can turn foot traffic into bookings. You can also partner with nearby cafes or tourist information centres to spread the word.
Your expertise and our technology fills hotel rooms last-minute
Last-minute bookings can be made only days or even hours before accommodation is needed, but hoteliers should never feel that they are at the mercy of the market. In fact by applying strategies to leverage the last-minute phenomenon, a hotel can significantly improve business and ensure better occupancy. What may sometimes feel like a game of cat and mouse can actually be a highly rewarding way of attracting new guests.
At SabeeApp, we understand the fast pace of today’s hospitality world. Our cloud-based Property Management System and Smart Solutions apps are designed to give hoteliers the automation and flexibility they need, including for last-minute bookings. With your expertise and our technology, filling rooms becomes less of a challenge and more of a competitive advantage. If you’re interested, get in touch for a free demo - we’ll be happy to show you how SabeeApp works.