People are increasingly deciding at the last minute whether they want to go to a festival, a Michelin-starred restaurant, or a wellness hotel. This last-minute behavior leads to frustrations and challenges in the hospitality industry, but it also offers many opportunities. “People who really want something are often willing to pay extra for it.”
Online platforms like Booking, Airbnb, and OpenTable make last-minute bookings for vacations or dinners easier than ever with innovative, user-friendly technology. Within seconds, you can make a reservation, often at an attractive rate, without any upfront payment obligation.
Last-minute booking is no longer seen as stressful; instead, it gives people a sense of freedom and flexibility. In times of financial uncertainty, unpredictable weather, pandemics, and wars, people avoid early commitments and prefer to keep all their options open.
This trend is amplified by social media: seeing photos and videos inspires people to go out or dine somewhere, leading to impulsive bookings and reservations. Younger people are increasingly impatient and want to arrange such experiences on demand. They also cancel more often at the last minute, whether they lose interest, find something more appealing, or the weather changes.
For the hospitality industry, this behavior is quite challenging due to purchasing, inventory management, and staffing. As a result, restaurants are increasingly using deposits and re-confirmations to keep things on track. Consumers, on the other hand, prefer platforms and places where they can cancel up until the very last moment. Offering flexible cancellation policies is therefore becoming increasingly important.
With the right pricing strategies, you can effectively tap into the last-minute needs of guests. This can be done through discounts or special offers, but you can also charge a higher price, as festivals and clubs already do. Why not keep a few tables or rooms available on Friday nights for people who book last minute?
People who really want something are often willing to pay extra for it. As a hospitality business, you can benefit from this new guest behavior by using targeted marketing tools, such as exclusive same-day deals, push notifications, targeted social media ads, and apps that offer last-minute deals. Whether you like it or not, the new generations are growing up with on-demand services, so you might as well get used to it.
This trend article was previously published in Entree Magazine.