Covid 19 and subsequent lockdown have made a massive impact on guest behavior. The often-changing regulations coupled with turbulent political atmosphere have made people apprehensive about possible uncertainties. There is optimism and then there are uncertainties. Their expectations have changed. Their behavior and purchasing decisions are influenced by heightened emotions, as highlighted by a recent Google study.

For the hotel industry, on its way to recovery, the change is challenging but also transforming. Guest satisfaction is paramount to a hotel’s business. There have been countless studies to understand how cultural background influences hotel selections.

Research has shown different cultures have different attributes driving booking decisions. The pandemic has brought in a new set of attributes for hotels to capture the attention of potential guests. And hence it is crucial for the industry to understand the changing consumer perception to allocate and promote resources to these attributes effectively. The earlier the better.

Even before the pandemic, travelers were putting more value on needs than on pricing. This shift gives the hotel industry an opportunity to improve revenue through right value positioning. Going back to the basics of the right price at the right time to the right client or being present at every touch point during the guest booking journey would give hotels an edge to attract or retain customer preference.

This leads us to the biggest challenge faced by the hotel revenue managers today – how to navigate through this labyrinth at a time when demand patterns are uncertain and there is much-reduced relevance of historical data?

Reservation data from our system shows that post-pandemic, the booking window has significantly shortened while there is a visible increase in the length of stay. This has been confirmed by other technology companies. According to an Amadeus report, 54% of the trips are currently being booked 0-7 days before travel.

For hotels, shortened booking lead time can be unnerving. However, for someone who has been working in the revenue management domain for the past 3 decades, I have a different take. I believe this is an opportunity for transformation within the hotel industry. If the earlier transformation was about adapting to online, this time it is bringing more focus on data.

Data is the most valuable currency for every business now. At a time when seasonality, peak and shoulder periods are getting blurred, insights on market dynamics, competitor behavior and search trends give hotels a bigger picture and the ability to understand its impact at the granular level.

For hotels, forward-looking data along with historical trends provide a perspective of the market helping them be more agile and identify demand patterns. The methodology and idea remain the same, but thanks to advanced data, hotels can make more optimized pricing decisions.

The flexibility to offer customized products priced independently or customized/personalized pricing or as bundled solutions available with advanced hotel systems will give them the ability to tailor experiences fit for the unique needs of the guests, and thus keep in line with changing guest expectations and behavior.