Why The Holiday Season is Vital for Your Sales Next Year?

The holiday season has arrived, signaling it's almost time to contemplate your approach for the next year. Have you realized that your company might have even more potential for excellence?

After the summer season, December is often regarded as an opportune moment to reflect on the past year and strategize for the year ahead. Year-end reservations in the hospitality industry can coincide with a seasonal peak, such as the celebration of Christmas or New Year's, and could be a pivotal factor influencing your future success.

More than 50% of gift vouchers are sold in December. This aligns with the notion of gift-giving during the festive season. The gift voucher market is on the rise. But what do gift vouchers truly signify in the hospitality sector?

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1. A Way to Distribute Revenue

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According to a study by Nea Bjorkqvist, 77% of consumers were willing to purchase a gift voucher for a hotel or B&B in 2021. Essentially, this means that revenue from a specific booking arrives much earlier than the service is delivered. Thus, it might be an idea for hotels or B&Bs to explore selling gift vouchers to generate extra revenue.

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2. Method to Generate Additional Revenue

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Nordic Hotels strongly emphasized the sale of gift vouchers during a period in 2020. With this, they managed to generate an extra $1.5 million in their first 24 hours. An important lesson in gift card sales is that they aren't always redeemed. Especially considering that 73% of people possess gift vouchers that are at least a year old.

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3. Increased Consumer Spending

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Other microeconomic studies also show that consumers who use gift vouchers are less price-sensitive, making them more inclined to book higher-priced hotels or B&Bs. Furthermore, these consumers are also more susceptible to purchasing extras (such as early check-ins, late check-outs, breakfast, etc.). This is because the psychological concept of a purchase changes completely when using a gift voucher.

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Impact on Year-End Bookings

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According to data from OTA Insight, all bookings/searches on OTA platforms at the end of December pertain to a period of +30 days. This is 50% more than the same period in November. The acquisition of gift vouchers influences the increasing number of searches for future stays. An important lesson can be drawn for internal revenue management: it's crucial not only to consider temporarily increasing dynamic pricing, but also to focus on stays from late January.