The London hotel market has never been more competitive: not only were new hotels built for the 2012 Olympics, even more hotel rooms have since arrived. And the UK and world economy has not encouraged the growth in visitors that might offset the anticipated post-Olympic slump.
Hoteliers assuming a strong and quick rebound during the traditionally slow post-Olympic years, therefore, could be left with many empty rooms needing to be filled.
The problem, of course, is not confined to London: hoteliers throughout the UK on average have as much as 30% of rooms unoccupied, and are keen to maximise sales.
But hotels do not wish to be seen to offer heavily discounted room rates, alienating guests who book with them at higher rates, and potentially damaging their profile and long-term business.
Taking action to increase bookings and revenues
Anticipating both the potential slump this post-Olympic summer, as well as the growing competition and reduced prices that results from the increasing number of available rooms, Hotwire.com has signed many London hotels wishing to use its services.
Hotwire.com is the leading discount travel website that has pioneered the process of ‘secret hotel booking’: sometimes described as using an ‘opaque model’, Hotwire.com simply sells rooms at the deep discount that is attractive to potential guests – but without revealing the hotel’s name until after the room booking has been made.
Pro-active hoteliers recognise the benefits this brings: more bookings, but no accompanying public visibility. The opportunity, therefore, to actively improve booking levels and revenues, instead of suffering the market over-capacity and consequent price reduction.
And, of course, the hotelier then captures guest data and seeks repeat business from that guest.
Hotwire.com’s expanding business
Hotwire currently works with more than 300 hotels in London, helping them increase occupancy levels and revenues and meet sales goals throughout the year, especially in times when demand is slower.
In the last year, its hotel partners have increased by 5,000 across Europe, and 400 in the UK (mostly in cities). Increasingly, large hotel brands are choosing to work with Hotwire.
And its UK growth in rooms sold has been accelerating: up 70% year-on-year in April alone.
Tara Stangel, director of Hotwire.com’s hotel team comments:
“Most signs point to the fact that London hoteliers will have to be more creative when it comes to sustaining occupancy during these post-Olympic years. Many seem to sense this already as we’ve seen an uptick in hotels utilizing sites like Hotwire as new channels to maximize revenue.
“The opaque model operated by Hotwire offers hoteliers the opportunity to sell their empty rooms at a discounted price, and earn revenue on inventory that would otherwise go unsold.
“Revenue managers at London hotels seem to prefer Hotwire.com’s opaque model to flash sites or discounting heavily through traditional online travel agents, because Hotwire gives hoteliers the option to sell their distressed inventory at a discount cost, without revealing their brand name and possibly compromising retail purchases.”
Corporate and leisure business
The business generated is not confined to leisure customers, though weekend business does account for 40% of sales.
60% of sales are made for weekday nights, with significant numbers of corporate customers seeking to upgrade to a better quality hotel on their permitted expense budget.
About Hotwire
Hotwire.com is a leading discount travel site with low rates on airline tickets, hotel rooms, rental cars, cruises and vacation packages. Launched in 2000, Hotwire, Inc. obtains deep discounts from its travel suppliers to help travel lers book unsold airline seats, hotel rooms and rental cars. Hotwire.com is an award-winning website and Hotwire, Inc. is an operating company of Expedia, Inc.
For more information click here