So, if you’re wondering if you’re on trend, behind or perhaps even a little ahead of the curve, here are our Managing Director’s thoughts on how the South West Tourism Sector has been shaping up in the second quarter of this year…

When are we now comparing to?

You’ll be familiar with the saying you want to be comparing ‘apples with apples’ or ‘oranges with oranges’. It’s certainly no different with website data; you want to be comparing like for like, season with season, year with year. However, Covid has obviously made that very difficult; if you compare 2021 with 2020, you’ll likely be filled with a warm fuzzy feeling. Compare 2019 with 2020 and you’re likely to be brought out in lockdown sweats.

But when should you be comparing to? Up until the start of this year, I had been a strong advocate of comparing your data back to 2019. It was the last year of ‘normality’ and a decent gauge of where you stood against that stasis. However, far too much water is now under the bridge, so it’s time to move that comparison forward and reflect on where you stand against the same period last year.

Although there are of course variances to take into consideration, we can factor those into our own thoughts and feelings on overall performance.

Let’s take a look at the average performance against last year….

Bookings are still being made late

I highlighted at the start of the year that people were making booking decisions a lot closer to the date of arrival. This trend has continued throughout the second quarter of the year, with those looking forward in their booking calendars still seeing gaps where they’d usually not. But, when looking back, thinking to themselves that performance on the whole has certainly not been as bad as they would have anticipated.

Late bookings are an obvious breeding ground for uncertainty and nervousness. However, with website traffic starting to rally, my belief is that bookings should pick up from here, although they will be made later, even as we head into the school summer holidays in some cases (read on for more on that!).

The exception to any late booking rule is repeat bookers; they will always book earlier and more regularly, so if you aren’t already putting in place methods to woo people that have already been with you, then now is the time to get moving.

Your cash flow will look better as will your booking calendar.

Website traffic has strengthened through May

The first four months of the year represented a 10 – 20% drop in traffic for most websites when compared to last year. That kind of makes sense; they’re booking later, so they won’t be looking earlier!

However, May was the first month that we saw most sites rally above their 2022 traffic levels; sometimes only marginally but some are up by 10 – 15%. These are certainly encouraging signs for those still looking to fill the months ahead and do buck the trend of lower traffic often seen on bank holidays (if you’ve forgotten, May was rammed full of them!).

Further evidence of the late booking culture is the level of traffic seen during school holidays; this is riding higher than usual and does suggest that some are looking for a holiday during the actual period of the school holiday. Very last minute indeed.

The July and August divide

Funny one this; if I tell you that people are booking later, then logic would suggest that July is booked before August. Not the case for many; several of our clients are busier in August than they are in July. If I cast the data net wider, that’s not necessarily uncommon and we’ve often seen a trend of August booking before July in the past.

However, if you’re reading this and thinking you’re the opposite, then you’re also not alone! Several of our other clients are seeing strong July performance with a more hollow August.

The only common denominator here is that there are still gaps in these school summer holiday months when there are usually not. Remember though, later bookings suggest that not all is lost here.

Deals aren’t gaining traction

We’ve seen a poor response to deals and offers. Why might that be? It’s important to remember that a deal or special offer is there to nudge someone over the line; it won’t change their mind completely. What I mean by this is that if someone is wanting to stay during July, when they can get time off work or it’s during school holidays, offering them a discount for June is not going to work. Having an offer that makes your price competitive for when they are staying will.

But what I would say there is that that is more about price than the offer itself. We’re undoubtedly in a strange pricing stage; we had Covid and the resulting period where prices went up purely because demand was so high. Since then, the input costs for you as a business have soared, so the temptation is to now rise again. That’s understandable but getting your pricing right now will mean you’ll gain more than any deal or special offer you have to resort to down the line.

Our overall feeling?

Reasonably optimistic. We’ve had a slow start to the year and all indicators are suggesting that the late booking trend will continue into the busiest part of the year. The growth in traffic during May and into June gives definite hope that demand is picking back up (although there is still too much in the way of supply on the market), so getting your pricing and proposition right now will stand you in good stead for what’s to come.

If you’re a business in the tourism industry that needs help from experts in the field, then get in touch with the team. 

Call us on 01566 232323 or email hello@mihidigital.co.uk.

The post Our Overview of the South West Tourism Sector During Q2 of 2023 appeared first on MiHiDigital.

Because we work with more than 100 accommodation and hospitality providers in Cornwall, Devon, Somerset, and Dorset, as well as some of the major destinations, we’re fortunate to have a front row seat to overall trends in the industry in this part of the world is seeing. 

Here’s what we’ve noticed….

A drop in early traffic levels during the year

Many sites within the South West Tourism Industry have seen year-on-year traffic for Q1 drop by somewhere between 5 – 25%.

There are two core reasons for this:

• January of last year was at the back end of the post-Covid traffic surge of 2021 (brought about by a lack of international travel and people seeking their first opportunity to get out after lockdowns). This means that figures were artificially higher last year, and you would expect to have some drop off this year.

• However, there has been a noticeable drop in demand since last year, which has been exacerbated by people booking closer and closer to the date of their arrival. This means, as an example, that traffic that would commonly be booking for the summer may currently be booking for Easter. As a result of that summer booking traffic levels (which are often higher) are being pushed to later in the year.

In terms of good news, the majority of the 5 – 25% drop is usually found in January, with February and March traffic levels rallying against and sometimes above last year’s numbers.

My overall feeling is a lot more positive now than it was at the start of the year.

Uncertainty leads to a delay in decision making and bookings 

We’ve mentioned that people are booking closer and closer to the time of arrival, but why are they doing that? As humans we like certainty, and many people need it when planning. Over recent months we’ve faced what seemed like a long winter, economic difficulties, a cost of living crisis, a war in Europe….the list goes on and on….

All those factors bring uncertainty and that in turn delays decision making. For you, it means their booking comes into your booking engine closer to when they’ll be joining you. That in turn brings you uncertainty, as you look at your calendar and feel that it’s not as full as it usually would be by now 

My view on this is that bookings will come, but they will come later; I’ve every expectation that if your marketing is right, booking revenue this year shouldn’t be dropping by any large amount.

The importance of repeat trade

There’s one thing that trumps the trend above (of people booking later) and that is the beauty of repeat guests; they book earlier, they come more often and they’ll also tell people about you too! 

There’s never been a more important time to be on your game when it comes to getting people back to your property than now; if you’re not doing it then you’re going to be paying more for new guests (see my next point) and you’re going to have the stress of them booking later. 

Levels of supply are still high 

Another factor affecting the market is the level of supply. During the Covid period, and just after, the number of cottages on the market through platforms such as Airbnb soared. That wasn’t a problem when supply was also soaring and there was a limited amount of international travel. 

However, there has been a drop in demand and because supply is still high in South West Tourism, it means that demand is spread across a wider range of options. Just like spreading jam on a loaf of toast rather than a slice, it means that booking coverage is being stretched and effective marketing to a defined audience is becoming more important. If you don’t market, you’re likely to find yourself often being the ones with the gap.

My summary: 

• Traffic to sites was down in January but has begun to rally.
• Levels of supply are still very high, and demand has dropped slightly.
• People are generally booking later.
• A focus on repeat trade can insulate cottage owners from market fluctuations.

if you want to know more about how MiHi Digital can help your business grow, then get in touch with the team!

Call us on 01566 232323 or email hello@mihidigital.co.uk.

The post Our Overview of the South West Tourism Sector During Q1 of 2023 appeared first on MiHiDigital.

The building itself, which is a brand new conversion from a former Sunday school, will provide us with room to grow even further in the coming months and years. It also enables us to increase the amount of training that we give to local businesses, with our meeting room able to hold up to 20 guests, who will enjoy state of the art technology during our sessions.

We’ve included a few images of the team enjoying their new surroundings and look forward to welcoming you to our new home very soon!

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