Hotel booking lead times lengthen sharply
Earlier planning and higher-value stays are reshaping hotel revenue strategies
Traveler booking behavior is undergoing a structural change, with guests reserving accommodation much earlier than in previous years. This shift toward advance planning is accompanied by higher nightly rates and longer stays, indicating more deliberate and higher-value travel decisions. Despite longer lead times, pricing power remains strong, suggesting demand is forming earlier rather than weakening. These dynamics require hotels to rethink how early they position rates and inventory.
Key takeaways
- Booking lead times rise dramatically: Average hotel booking lead times have increased sixfold over two years, reaching nearly 70 days compared with low double-digit levels previously.
- Advance planning becomes standard: Travelers are booking further ahead to secure availability and perceived value, signaling more intentional trip planning.
- ADR growth remains strong: Average daily rates have increased by more than 20% in two years, showing that earlier bookings have not softened pricing power.
- Longer stays reshape demand: Average length of stay has grown from under three nights to around four nights, reflecting more complete and extended trips.
- Higher-value travel accelerates: Longer stays combined with higher nightly spend point to guests prioritizing richer, experience-led visits.
- Revenue management moves upstream: According to RateGain, hotels must shift from reactive pricing toward earlier, data-driven demand anticipation while retaining flexibility closer to arrival.
Source: RateGain
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