February 2020 Forward-Looking Data - Amadeus Hospitality

February 2020

Between Brexit and the Coronavirus, what’s the impact on your hotel bookings?

The UK has finally left the E.U. and the concerns of Coronavirus are altering travel patterns, so the question on all of our minds is…what impact will this have on my business? the latest forward-looking data from Amadeus will help put you at ease.

The GDS channel demonstrated stability and sustainable growth

2019 was a record-breaking year for Global Distribution Systems (GDS), with a 1.7% growth in bookings for the trailing 12 months. Major cities in the UK like Manchester and Belfast posted strong numbers as well as the Republic of Ireland, which saw 5.7% more GDS room nights booked last year. And there’s no sign of slowing down in 2020, as record numbers are expected from this channel in these markets. Hoteliers should take advantage of this by using data to attract guests and win more bookings from direct competitors.

But it’s not just about how many bookings are being made, you should also think about how long guests are staying for. The current hotel average is 1.88 days and fluctuates by season, with people travelling longer in the summer and shorter in the winter. For those of you looking to increase the average length of a guest stay, data can expose key opportunities to run a promotion that will entice guests into booking additional nights.  

The weather might be grey, but group occupancy is looking bright in 2020

When we look at the next six months, for group occupancy, we see an increase of 4.4% in the UK and 5.7% in Ireland. Whilst this number normally drops during the summer, occupancy will continue rising in 2020. With so many group bookings, it’s important for hotels to think about their revenue management strategy. We recommend tightening rates on high group days to help maximize revenues from transient business.

OTAs and Brand.com accounts for 70% of transient bookings

There is good news here for hoteliers, as almost a third of bookings are direct through Brand.com. But the numbers don’t lie, and OTAs are not going anywhere, with 37.7% of bookings expected from this channel in the next six months. Hotels can benefit from millions of potential reservations coming from OTAs, so it’s important to have a healthy channel mix combined with the latest technology to increase visibility, loyalty, and ultimately drive more direct bookings to your website.

2020 UK Forward-Looking Data Insights

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