REACTING TO TRENDS

New analysis of 100 million reservations unveils the key trends for UK accommodation providers this summer.

SiteMinder’s new Hotel Booking Trends report, the only hotel commerce data analysis of more than 36,000 hotels and 450+ connected booking integrations, has revealed the changing way guests are discovering and booking accommodation online, and what this means for UK overnight venues in the lead up to summer.

Three key findings of the report for local properties are:

UK room rates are increasing, making accurate pricing more important.

SiteMinder’s UK properties averaged £172 per night in 2022, up from £130 per night in 2021. This represents a yearly increase of 32%, above the global increase of 24%. Across the four years SiteMinder analysed, ADR hit its low point in January 2021, when local properties averaged £71 per night.

What does this mean for UK hotel businesses?

As ADR increases and “value for money” becomes a bigger talking point, every UK property should be building an understanding of how their pricing positions them locally, and whether the price of their rooms is appropriate for the guests they’re targeting.

The way UK hotel properties are receiving bookings is changing, as travel patterns evolve

As international travel returned through 2022, the channels having the biggest impact for local businesses shifted. Examples of this in SiteMinder’s list of the Top 12 revenue making channels for UK businesses were: the inclusion of Trip.com for the first time, and the rise of both Expedia and Hostelworld.

What does this mean for UK hotel businesses?

Knowing which channels are performing well for your property and staying in touch with where your competitors are seeing value remains vital in 2023. SiteMinder’s internal data continues to highlight that promoting a property on five or more channels can increase bookings by up to 40%.

Growing traveller confidence is lengthening the booking window and lowering cancellations

As the mind-set of travellers shifted in 2022, the average booking lead time jumped to 37 days for UK properties, up from 31 days in 2021. Cancellation rates dropped from 26% to 21%, in the same period.

What does this mean for UK hotel businesses?

As confidence among travellers builds, lengthening lead times are influencing the timing of when accommodation providers are publishing special offers to the market.

The increased gap between when a booking is made and the date of check-in also highlights the growing opportunity for businesses to entice their guests with special extras and upgrades as they book, and in the lead up to their stay.

Go to www.tiny.cc/hotelbookingtrends to view all of the insights from SiteMinder’s Hotel Booking Trends report in the lead up to summer. www.siteminder.com