The global hospitality industry as you may know has turned over a new leaf in the last two years. Now that things have taken a positive turn, the hospitality industry is witnessing change in booking preferences among travellers.
There is a sudden surge in the dynamic demand environment. Direct bookings, longer stays online bookings, have taken the front seat. Booking lead times have shortened considerably as consumers are preferring to wait until closer to their trip to book it. A staggering 79 percent of travellers are now booking within 14 days of their stay date, up from 24 percent in the previous year, according to STR.
Flexibility remains a priority for many travellers: Nearly one in three travellers say that an accommodation provider’s cancellation policy is one of the top three factors influencing a booking. A growing number of travellers are taking advantage of the flexibility by “trip stacking,” booking two or more trips over the same travel period in case Covid-related issues ruin their preferred travel plans.
Because of the continuous hybrid model in corporates, weekends are not the only high-demand days for the sector but travellers are now preferring longer stays. According to the Future Market Insights report, 57 percent of companies allow employees to extend business trips as part of their policies. Adding to it, travel has now become extremely experiential and educational. The scope for a traveller to book accommodation that provides an experiential stay has increased double fold.
On the other end of the spectrum, there is nothing new about the concept of a hotel offering services and making money from sources other than a guest’s overnight stay. Although it has been common practice for decades to provide non-residents access to restaurants, spas, or casinos, many chains and boutique hotels were already reevaluating their offerings before the pandemic.
Rethinking hotels as co-working spaces is a possible offer extension given that working from home is now commonplace, office leases aren’t being renewed, and remote firms are becoming more common. Properties are offering “flight + accommodation + on-property business services” packages, working closely with airlines. Others are making deals for parents who work from home and their children who attend distant schooling.
Meanwhile, leisure travellers are more likely to remain local. There are now more “drive markets,” and many visitors stay within 300 miles of their homes. While group and business travel does occur, it is often significantly less than the quantities and financial contribution that hotels have traditionally anticipated. Hotels may navigate the short-term and become ready for the long-term by varying the mix by developing new offerings for the business and leisure industries.