Is the pre-reservation lost forever?

The "Le Blog elloha" article highlights a significant shift in the leisure and experience booking market towards "last-minute" reservations. This trend suggests that bookings planned months in advance are being replaced by the behaviors of an ultra-connected, younger, and increasingly unpredictable consumer base. The primary drivers of this change are Gen Z and Millennials (under 35s), who now hold considerable influence in the tourist experiences market. This demographic is notably price-sensitive, prone to comparing options, seeking promotions, and changing plans frequently, often booking activities just the day before or even upon arrival.

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The proliferation of specialized online travel agencies (OTAs) has intensified market competition while simultaneously creating new opportunities. To effectively engage this evolving market, businesses must prioritize digital agility and robust online booking systems, as the booking window continues to shrink. Interestingly, aggregated studies indicate that conversion rates are boosted by higher last-minute booking rates, particularly from travelers looking to experience multiple activities during their stay.

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For car rental experts specialized in revenue management, the insights from the experiences market offer crucial parallels and best practices:

• Dynamic Pricing & Offers: It's essential to adapt tariffs with flexible, shorter, and more affordable formats, such as "youth" packages, and to utilize targeted "last minute" promotions to boost sales.
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• Real-time Availability: Providing actual, updated availability in real-time is paramount, moving beyond simple contact forms to offer a frictionless booking experience.

Action: for your optimization, do not over-book the most demanded categories to early in advance to keep some on the last minute
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• Digital Presence & Personalization: Be highly visible on mobile platforms and last-minute applications. Leverage AI for smart, personalized recommendations and create rich content (texts, reviews, photos) that feeds search engines and AI to inspire customers instantaneously.

Action: I like to highlight the example of Avance Greece, which publishes Tik-tok videos highlighting the destination and the people... not the car that much.

• Flexibility: Offer free and flexible formats that can accommodate individual schedules and preferences.
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• Payment Models: Consider the effectiveness of "book now, pay on arrival" models, a strategy Airbnb is reportedly exploring globally, which impacts cash flow and booking commitments.

Action: divide the pre-booking by a lower price to encourage customers to pay in advance.

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Ultimately, the article stresses that agility, innovation, and authenticity are key to capturing these fast-evolving and demanding customers.