What is a late booking?
Late bookings are often spontaneous, last-minute bookings that are often made days, hours, or even minutes before a guest’s check-in time. These bookings often happen due to sudden travel plans, business needs, or even whimsical decisions for a quick getaway.
While they can be a wild card in the hotel management game, they offer a unique opportunity to maximize occupancy and revenue. However, they require a level of agility and real-time responsiveness from the hotel’s end to ensure a great guest experience.
This blog provides a complete guide to late and last-minute bookings and how your hotel can benefit from them.
What are the benefits of last-minute bookings in hotels?
Last-minute bookings can be the answer to unused – and therefore unprofitable – space, often filling rooms that would otherwise go to waste. However, it’s not just about “more = better.”
Booking a hotel room at the last minute has a wide range of benefits, including:
Maximum occupancy: Filling rooms at the eleventh hour ensures that you are making the most of your available inventory. An occupied room, even at a discounted rate, is better than an empty room.
Increase income: Late bookings often come with higher price tags and capitalize on the urgency of guest needs. This allows you to maintain or even increase your average daily rate (ADR).
Diverse clientele: Last-minute bookings attract a wide range of guests, from business travelers with late flights to spontaneous weekend adventurers. This diversity can enrich your customer database and allow you to reach new audiences.
Reduced cancellation risk: The closer a booking is to the stay date, the less likely it is to be canceled. This adds a layer of reliability to your occupancy rate.
Operational efficiency: Knowing you have a full house can simplify other operational decisions, from staffing levels to food and beverage orders.
Better guest experience: Last-minute bookings give you the opportunity to impress a new segment of customers with your impeccable service – putting them at ease and potentially turning them into loyal customers.
Market competitiveness: The ability to optimally handle last-minute bookings makes your hotel agile and responsive, traits that modern travelers value highly.