As we look further out into September, occupancy does dip a bit. But this doesn’t necessarily mean the demand isn’t there. If we look at booking windows, 42% of bookings in the UK and Ireland are still made within 0-7 days of travel. But it’s also interesting to see the growing proportion of bookings made with more than 8, 15 or 30 days in advance. This activity is reflecting pre-pandemic behaviours, which indicates higher traveler confidence and a desire to travel.

We previously mentioned that overall lead time in the UK is still fairly last minute. However, when we look at occupancy levels in September and October, group business increases the further out we look. This suggests that while leisure travellers might be cautiously booking, when it comes to group business, planning ahead is still favourable. In terms of markets driving this demand, flight data reveals that 17% of the scheduled flights in the UK for September and October are expected from within. This suggests that domestic travel will continue to drive both leisure and business travel in the short-term.

As you continue to rebuild your business, to help you on your way, Amadeus has updated our series of recovery eBooks – published in collaboration with HOSPA, HSMAI and the Institute of Hospitality. If you’re looking for more guidance on Operations, Marketing, Revenue Management or Sales, download one of the complimentary eBooks.

As you continue to rebuild and capture business in the coming months, it will be important to understand which markets are influencing demand. In most markets globally, unsurprisingly, domestic travel continues to drive the majority of bookings. For example, in Portugal, despite a growth in bookings following their addition to the green list, only 15% of bookings came from the UK in the trailing 4 weeks as of mid-June. With quarantine mandatory for most markets, currently 76% of reservations in the UK are made domestically. However, Ireland tells a different story. Following the news that American tourists are welcome as of July 19th, 34% of bookings in this market are currently coming from the U.S. This provides an important opportunity for hoteliers in Ireland. Consider directing any available ad spend to this market, in order to get your property seen – and booked. For the UK, continue to monitor feeder markets, to anticipate and adjust promotions ahead of the competition, for instance should the US and UK travel corridor go ahead.

If you’re looking for further insight and guidance on what decisions to take in the areas of Operations, Sales, Marketing or Revenue Management, then visit the dedicated Amadeus Hospitality Rebuild Travel hub. You’ll find a variety of resources, including brand new Rebuild Hospitality eBooks.

However, one of the major trends that emerged out of the pandemic is a reduction in lead times. In the U.K., this is still an important indicator for demand. Currently, 56% of bookings are made within the one-week window, of which 27% are made on the day of arrival. Whilst this number is down from 2020, it’s still a notable change than when comparing with 2019. As for Ireland, travellers are taking a more cautious approach, with 67% of bookings made 31+ days in advance.

Another important factor to consider is the cancellation ratio – the rate at which hotel bookings are cancelled. For the UK, this number is sitting around 20% for the months of April and May. This is lower than the 40% average seen even before the pandemic (Phocuswire). This is good news for hoteliers as it suggests that, whilst travelers might be waiting longer to book, when they are booking, they are doing so with more certainty.

Stronger signs of recovery in leisure destinations as anticipated by hoteliers

The increase in occupancy in line with the reopening of hotels is a positive sign for hoteliers across the U.K. But which destinations are driving demand? In our latest Rebuilding Hospitality report, hoteliers believe that leisure will be the primary driver of recovery. Current bookings align with this expectation. For example, throughout May, seaside destinations are leading the way with highs of 40-50% occupancy in Blackpool and Bournemouth. As we look further out, Plymouth is showing strong signs of demand with occupancy reaching 60% for July and August. Similarly, in Ireland, occupancy in Galway is above 50% throughout these months. In comparison, for London, occupancy is lower the further out we look. However, that’s not to say the demand isn’t there. When drilling down on lead time, 21% of bookings in London are currently made either the day before or day of arrival. If you have properties in this area, think about how to encourage stays by combining them with value-add activities such as restaurant discounts.

Finally, our newest indicator now provides insight into length of stay. Where the number appears as higher than 100% in the graph, this shows an increase compared with the previous time period. For the UK, this means that, compared with 2019, stays are lengthening overall. With alternative accommodations coming back strong, it’s important to think about how you can capture this market. Discounts on longer stays, remote office concepts or complimentary breakfast are examples of what could help your property stand out from the competition.

Understanding and applying data will be a key asset for hotels that want to effectively capture market share and stand out from the competition. For this reason, we have launched Amadeus Demand Generation. Combining insight from five solutions, hoteliers have the power to make informed decisions that can increase bookings in your direct channel.  

Amadeus Demand360® data comes directly from a hotel’s Property Management System (PMS) or Data Warehouse. This means that this data is not predictive, but an accurate reflection of what is happening in your market, and – best of all – you can view up to 365 days in the past or future. By using any of our Business Intelligence solutions, it becomes easier to create smarter strategies to improve all areas of your business.

Aside from this, Amadeus has a range of solutions that can help to maximise your success during reopening. This includes Media solutions to drive more visibility to your hotel, Service Optimization software to simplify hotel operations and abide with COVID-19 hygiene protocols and Sales and Events Management tools to easily plan and manage group business. Find out more about any of our solutions at: https://www.amadeus-hospitality.com/uk/amadeus-hospitality-solutions-overview/

At the time of writing, the staged reopening plans across the UK & Ireland were still not public. Despite this uncertainty, that’s not to say the only strategy to employ right now is the waiting game. Using Amadeus’ flight and forward-looking Demand360® data, we share what booking patterns we’re seeing currently. Using this data makes it easier to prepare for reopening – hopefully for the final time – and create strategies based on real-time information.

Pay attention to how and where bookings are made

In order to understand how bookings are being made, first look at where they are coming from. Let’s start at the search phase. Amadeus partners with Google to track this behaviour, and data as of the 13th February, confirms that the majority of searches are made within the UK. Moving onto booking behaviour, our data shows that Online Travel Agencies, direct bookings and Brand.com are the most popular channels currently in the U.K.
Ireland demonstrates similar behaviour, but with Direct bookings taking the top spot. As a hotelier, this data provides important insight when it comes to creating or adjusting marketing and revenue strategies. This spread in booking behaviour shows the importance of displaying your properties across a mix of channels, in order to maximise visibility and booking potential. It’s also key to maintain rate parity, to avoid travellers choosing one channel or another due to price. If you’re looking to drive more bookings direct, consider building promotions that go beyond price, such as offers for longer stays, free breakfast or room upgrades. For more advice on this, download our complimentary Direct Bookings Playbook.

Secondly, with search trends indicating an interest in domestic bookings, focus your advertising spend during reopening within the UK & Ireland. As restrictions ease, keep an eye on how this trend changes to look at widening your reach across other countries.

As you begin to plan for reopening, booking lead times will provide important insight into building promotions and adjusting operations, based on demand. Remember, our data is not predictive, but instead shows forward-looking on-the-books data that have been reserved.  In the earlier months of the pandemic, lead times on bookings reduced dramatically globally, with the majority of bookings made within 0-7 days. Today, this trend remains for the UK with 59% of bookings currently being made with this timeframe. This is a clear increase on last year. However, almost a quarter of bookings are also being made over three months in advance. In Ireland, this trend is even more prevalent, with 44% of bookings made over 90 days in advance – double that of last year. It’s likely that last minute bookings currently are a result of quarantine or essential travel, however those bookings further out are an indication of traveller demand and optimism. Take advantage of this to build promotions that span the coming months, maintaining flexible cancellation where possible. As we get closer to reopening dates, keep an eye on how lead times progress to understand whether you should adjust your promotions to include ones such as last-minute offers.

Preparing for reopening requires thinking of where travellers might be headed. We’ve taken a look at what occupancy looks like for the months of July and August. As many of us remain cautious, occupancy still remains low for most places. Locations such as Carlisle, Dundee, Oxford and Plymouth all show occupancy levels of at least 20%. This contrasts to bigger cities such as London or Birmingham with single-digit occupancy during this time. In Ireland, Galway and Sligo come out top with occupancy of between 20- and 40% throughout the summer months. This unsurprisingly verifies that, once possible, travellers are looking for a break from city life, opting for country or sea air. If you have destinations in these locations, keep in mind that competition will be strong. Avoid focusing on lower prices, and instead look at other ways to make your property stand out from the crowd – what are your property’s selling points? What packages might appeal to your target audience? If you’re not in these locations, remember that everyone is ready for a break from the lockdown routine. Emotions will play an important role in attracting demand, so think of promotions that will appeal to this.

If you’re looking for more guidance on reopening, on the topics of Marketing, Operations, Revenue Management or Sales, download any of our complimentary eBooks for advice.

Throughout 2020, we saw a growth in Online Travel Agency (OTA) bookings. Currently, 36% of bookings in the UK come from this channel, and a further 32% from Direct. In Ireland, the proportion of OTA bookings rises slightly to 42%, and Direct drops to 34%. This split suggests travellers are using different channels to make bookings, so – if you haven’t done so already – adapt your channel mix to make sure you have presence across all major channels.

Amadeus offers solutions that span the end-to-end Hospitality journey. To find out more how we can help you to drive profitable demand, deliver memorable guest experiences and improve operational efficiencies, learn more about our solutions here.