Last-minute hotel discounts disrupt early booking calculations

For those who planned their summer vacations months in advance, the early booking advantage—which has been the strongest incentive for years—has backfired at some facilities this year. Hotels that could not reach expected occupancy rates have focused on last-minute campaigns, particularly for August and September.

With this price movement in the sector, campaigns announced during the season at some hotels have fallen below the cost of reservations made months ago. While prices are normally expected to rise as the season approaches, the weakening in demand and the pressure of empty capacity have changed pricing policies.

OCCUPANCY PRESSURE REFLECTED IN PRICES

Tourism agent Ramazan Kıvanç stated that last-minute discounts falling below early booking prices could affect consumer behavior.

Kıvanç said that citizens think they are securing their vacation at a more affordable price when they book early, but consumers who see the same hotel being sold at a lower price during the season may prefer to wait next year.

Pointing out that this picture poses a risk to the system, Kıvanç assessed, “This situation could damage trust in the early booking system. It may also become difficult for hotels to build occupancy before the season. Therefore, it is important that last-minute discounts remain a temporary price movement.”

High vacation costs have also been effective in the withdrawal of prices. Increases in accommodation, transportation, and food and beverage expenses have led many families to recalculate their vacation budgets. The fact that domestic tourists are more cautious in their spending and the expected activity from foreign tourists has remained limited has lowered the occupancy targets of hotels.

According to data from the Ministry of Culture and Tourism, the hotel occupancy rate across Turkey fell to its lowest level in the last 5 years in May. Although the occupancy rate rose to 52.23 percent in June, this level was recorded as one of the weakest June performances in recent years.

Although sector representatives expect a partial recovery in July, they are of the opinion that it will not be easy for facilities to reach their targeted occupancy in August and September. For this reason, last-minute discounts are expected to remain an important topic in the tourism market until the end of the season.

News Source: 12punto