Written By: Nengli Leow – Business Development, Bukit Vista
Reading Time: 5 Minute
In times of uncertainty, increase your visibility on small but important marketplace signals
The global travel industry has been negatively impacted by Coronavirus. In 2019, Bali saw 437,537 and 449, 637 tourists enter in February and March respectively. This accounts for 14% of total inbound tourists to Bali in 2019 and we are expecting a much lower number this year given the travel ban. Although the ban applies only to China, we have been experiencing cancellations from everywhere in the world.
As a hospitality management company managing over 124 active properties in Bali, we have been tracking our daily performance (e.g.: volume of bookings, dates in-demand, cancellation rates, guests inquiries) to ensure we minimise loss of income for the properties under our care. Here are some to-date stats we will like to share.
PAST 30 DAYS DATA
Over the past 30 days, we have confirmed 2,514 bookings, across 124 properties. Which averages out about 20 bookings per property over the 30 days.
In February, we saw a total of 138 cancellations. Of which…
- 54.3% of bookings are for Feb
- 18.8% of bookings are for Mar
- 14.5% of bookings are for Apr
- 2.9% of bookings are for May
- 2.9% of bookings are Jun
- 3.6% of bookings are for Jul
- 0.7% of bookings are for Aug
- 1.4% of bookings are for Sep
- 0.7% of bookings are for Nov
Data and data visualisation softwares make up the backbone of our business. It has been enabling us to make calculated and informed decisions that impacts current and future state of the properties we manage.
One of our key practices is – Pricing Agility.
Pricing Agility, in simple terms is the act of changing your prices to continuously increase bookings. To do this, you will need to know a few things.
- Is demand really lower than usual? If so, what is considered low? This determines when to decrease prices to produce a booking.
- When is demand increasing? This determines when to start increase prices to generate a higher profit.
- What is the maximum price your guest was willing to pay for your property (before Covid-19)?
- What is the minimum price to cover cost of your operations (without slashing rates) to protect profitability of the community you operate in?
- What is the new “acceptable” market price travellers are willing to pay during crisis period?
- Do you have an employee who is equipped with a basic level of analysing data and price change?
Understanding how to price, is only winning half the battle. Staying updated on what guests require is also crucial during this period. Work for the hospitality industry doesn’t stop when COVID-19 fades away. In fact, it’s just the beginning.
To gather more data and insights on business recovery, schedule a free 20-Minute consultation with us.Click for a free 20-Min Chat
We’ll love to hear from you, on how the community should
band together to bring everyone back to Business As Usual.