Hotel reshopping technology tool Tripbam has created a dashboard to show clients year-over-year in hotel cancellations, average daily rate and new bookings created for any time period. It also is providing personalized information for individual clients.
"We're providing insights into [this] data because [clients] are all asking the same questions, 'When will this thing turn around?' " Tripbam CEO Steve Reynolds told BTN. "At the moment, we have to tell them we're not quite sure yet. We're seeing cancellations bottom out, because there's not a whole lot more cancellations that can be done. But the new bookings are sort of flat, and we don't see it picking up yet."
Cancellations for the March 15-31 period in 37 U.S. cities increased 166 percent year over year, according to Tripbam data. "[They] are way up, especially in Chicago, Orlando and New Orleans," Reynolds said. Though the latter two are popular leisure spring-break destinations, cancellations increased in all monitored cities. New bookings show a decrease of 50 percent, with every city in decline.
"In other words, everything that should be canceled is canceled, and less than half of travelers are on the road," Reynolds said. "Hopefully, we're moving into a steady state where all travel is approved, essential [and] domestic. No more bookings to cancel. How long will it last? My guess is at least mid-April before we have some positive news."
ADR during that time period increased 3 percent year over year.
Those still traveling—and there still are some business travelers on the road, though Reynolds said it was possibly about only 30 percent of the normal amount, at least as of the beginning of the week—can find lower rates, he said. As ADRs have dropped, Tripbam's ability to find lower rates has gone up.
"Historically, it was around 12 percent to 15 percent," Reynolds said. "Now, we're seeing 25 percent to 30 percent of the time we can find a lower rate." The company also is seeing best available rates fall below corporate discounted rates. "We are telling customers that what is really shining right now is if you have a dynamic discount. BAR rates are going way down. It validates the dual-rate-load strategy, where [there is] a static [rate] as the cap and dynamic in times like this. Our larger customers have done this. I'm just wondering if it will start to go downmarket, and if a midsize company can get the dual-rate-load deal as well."
The company has added metrics to more accurately calculate client savings. For instance, Tripbam found savings on a booking, but it was canceled. Should that count as savings? The new statistics can help clients get a better look at the value of their cancellations. "A lot of them don't know how often they cancel, or how far in advance," Reynolds said. "So we're taking this as an opportunity to figure that out."
The key, he added, will be to provide forecasting. "How can we tell a travel manager, 'OK, it has turned around, we're starting to see an uptick, not just for you, but across all our clients.' " When that is possible, Tripbam will be able to show clients that other companies are lifting their travel freezes, and they could consider doing likewise.
"What's interesting is that we've never been in a recession in our seven-year history," Reynolds said. "It's a chance for us to figure things out and find out how much value we really can provide."