Greetings from Cape Town!
A month to Christmas wow can you believe!
For coastal and resort properties: If you are not at least 70% booked with guaranteed reservations from now untill end Feb then something went wrong.
1. Sticking to your rate from last year +10%? or
2. following the competitor down the road who could be 70% occupied but not to your knowledge, and you undercut his (higher) rate by R50 or R100?
3. maybe you have stay restrictions such as a minimum stay, or full prepayment?
4. Or perhaps you are ‘playing chicken’ with the last minute rush?
5. Lastly you have maybe closed out the rooms as you will be ‘full’ anyhow – but if you are not full by now how are you expecting to sell with no inventory?
We ackowledge the high demand calls for a seperate set of booking protocols but this high demand is no way different than any other high demand dates you experienced throughout the year. It is best being described as hotels handling their revenue in the best way possible now for season and some how they never did earlier this year. Why do we all jump for restrictions, heavy deposit terms and strict release policies?
The message here is: ‘open’ to allow booking flow, at the rate the market is willing to pay, (where price meets the demand and supply curve) and don’t discount too much. Reduce restrictions and rather aim at guaranteeing the business through valid method of payment. (cash / card / voucher). Make sure your wholesale channels are closed and enure OTA’s do not pull their tricks (incorrect promo application, overbooking and selling B2B rates on a B2C platform). Check your profile as an online shopper and make sure you are available at the specified price.
The lead time for our smaller hotels in CPT is still around 40 days but the larger hotels see bookings in the 15-20 day range. Most of them are 70% and higher witn one trading at 95%!
There is still time left, apply some logic and ‘wait – they will come’ OR if we can help you formulate a quick win strategy, CONTACT me now!
Happy selling and regards, Jaco
