New White Paper: Avvio Predicts Direct Cancelations Will Rise to 20% in 2022
Skift Take
As Covid-19 recovery continues, hotels must turn their attention back to a concern that’s been growing for years and promises to accelerate rapidly as guests come flooding back: rising cancelations.
As guests return to hotels amid the lingering coronavirus pandemic, hospitality professionals might be popping the champagne as bookings steadily climb. But the renewed energy of the travel sector comes with its own challenges.
Avvio’s new white paper, 'We Need to Talk About Cancelations', tracks this prominent challenge for hotel management and offers strategies to address the problem. Based on an analysis of 2.3 million direct booking transactions from 400 hotel websites in multiple countries between 2016 and 2019, the paper offers new insight that can help hotels plan for the future.
SkiftX looks at the key takeaways.
Download the White Paper
CANCELATION RATES ARE STEADILY RISING
According to Avvio’s research, cancelation rates are rising steadily year upon year, with a 36 percent increase in cancelation rates from 2016 to 2019. This is, of course, costing hotels money: Cancelations were responsible for a 15 percent share of lost revenue in 2019, up from 11 percent in 2016.
The core cause of this increase is “booking infidelity” in which travelers continu
