The Secrets Behind Last Minute Deals
A considerable percentage of all hotel rooms remain empty every night, especially during off-peak seasons and yet, the fixed costs of running such a complex business, like electricity, water, gas, insurance premiums, laundry, advertising, not to mention core staff salaries – stay the same, regardless of the occupancy level.
Hotels understand that an unsold room on a certain day is lost forever and this potential revenue opportunity can never be recouped.
That’s the reason why so many of them will go to great lengths to fill it with last-second guests – even at a much lower cost.
In terms of hotel perspective, an unoccupied room generates zero Dollars.
However, even if the room is rented at an extremely discounted rate, the hotel still gets to enjoy all the income from complementary revenue streams that are significant money makers, like pay-per-view TV, room service, bar and restaurants, dry cleaning, laundry and others.
So basically, this package deal translates to a win-win arrangement for both sides.
The customer gets a fantastic deal and enjoys rock-bottom rates, while the hotel gets to sell their distressed inventory without facing the ramifications of another vacant room.
Same-Day Booking Audience
The ability to get a room on short notice, like the same or next day, appeals to several key groups that can be easily characterized.
Let’s explore who are some of the most common ones:
- Spontaneous Travelers – People that have flexible schedules, enjoy improvising and like to do everything on a whim.
They are a classic audience for spontaneous getaways and spur-of-the-moment trips.
- Deal Hunters – Individuals that look for the best bargain packages at the lowest price.
Additionally, it’s also vacationers that are not necessarily looking for the cheapest offer, but rather specials that represent the best value-for-money.
- Corporate Travelers – Business people often need to change their travel arrangements due to unplanned meetings that can pop-up unexpectedly anytime.
- Road Trips – Individuals who are on a road trip and need a flexible way to make an instant reservation in their geographical area.
- Professional Procrastinators – People that hate the notion of planning and tend to do everything at the very last minute.
- People in Emergency Situations – Life can bring about surprises and emergencies that may force us to stay in a hotel: a canceled flight, an ailing family member that needs our help and other urgent scenarios.