What is booking lead time?
Updated
Lead time is the number of days between the day a guest books a room and the day they arrive.
Why does it matter to a small hotel?
Lead time tells you when the demand for a night shows itself. Leisure guests often book weeks or months ahead for a summer weekend; business and last-minute guests book in the final days. Knowing your own lead times stops you panicking about an empty night that normally fills late, and stops you relaxing about one that should have filled by now. It also changes how you price. A rate that makes sense eight weeks out may be wrong a week out, as the remaining rooms become more or less valuable depending on what has sold.
A worked example
For the 24-room hotel, a summer Saturday is typically booked about 40 days ahead, while an autumn Tuesday is booked about 6 days ahead. If a Tuesday three weeks out shows 4 rooms sold, that is normal. If a summer Saturday 14 days out shows only 4 rooms sold, it is behind a normal pace, and the sensible response is to check rates and offers rather than to wait. If you want to see lead times next to the rates around you, start a free RatePulse trial.
Related terms
Questions people ask
How do I find my average lead time?
For each booking, count the days from booking date to arrival, then average them. Do it separately for weekdays, weekends and seasons.
Is a shorter lead time bad?
Not by itself. It means guests are booking later. It becomes a problem if your pricing and offers assume bookings that now arrive too late.
Does lead time differ by channel?
Often, yes. Direct and corporate bookings usually come earlier or later than agency bookings, so split the figures by channel.