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Stays in May will be down for us this year

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charles cawley

Joined: 21 Sep 2010
Posts: 1205
Location: Herefordshire, Shropshire, Borders

PostPosted: Fri May 05, 2017 8:18 am    Post subject: Stays in May will be down for us this year Reply with quote

May will be the first month of 2017 where performance is not up to scratch. Whether the change in advertising policy of the majors was the same on the European mainland is something we do not know and local economic factors may be hitting the UK differently. Here's some ideas why:

Something strange is happening in UK TV advertising. This could be linked to the how markets are made and react and how the internet displays choice for buyers.

Over the last six weeks or so, (today is 5 May 2017), advertisements for cottage holidays have appeared on TV when they pointedly did not appear over Christmas and early 2017. This is a first, for decades, that the majors held back and the first time they have advertised on TV at this time of year. Early in the year, I suspect they thought it clever to spend more on internet advertising, particularly with Google, which saw an increase in pay per click bid costs. (Certainly, for our booking agency).

Meanwhile, astonishingly, Dior is running a Christmas style perfume advertisement- at this time of year? Something radical is happening. I suspect the major brands have, at last, woken up to the idea that the internet is not a separate market but that the internet and TV advertising- for that matter all legacy advertising, act on one one another. Some methods of advertising do more to expand demand- to make the market- where others present the competition to buyers in the market. Legacy advertising appears to be strong on generating demand and the likes of Google seem to radically increase market transparency providing radical access to competitors- many of whom could not possibly use TV advertising.

The loss of TV exposure early in 2017 appears to have caused a 20%- 25% fall-off in demand. People were not prompted or enticed to consider spending on a holiday cottage break so they did not go to Google. May bookings will be hard hit and early June bookings will suffer. Fortunately, peak Summer and Autumn bookings traditionally fill out, from now onward, with strong fix numbers from mid-July to mid-September for Summer and Autumn stays.

Recent AirBnB, Home Away and other booking agency TV ads will certainly help funnel more people to Google to choose from the competition. Casamundo is advertising on The Telegraph web-site. These big brands spend fortunes to make demand for little operators- and it seems they have no choice but to do this. The internet is far from the monopolist's dream, or a Sun Tzu 'advertise the competition into oblivion opportunity'- such beliefs could be a costly fantasy for investors shoveling money in the direction of the likes of AirBnB.

Recorded UK fall in consumer spending is also a factor. Other strange things, from hearsay, seem to be happening, such as surprisingly weak auction results from provincial 'antique and fine art' sales.

It is quite unnerving for small businesses to know that they are increasingly dependent on the majors to generate market demand. It was a costly lesson for the majors: Legacy Holiday Let Advertising is Crucial to the Internet. Old rules of marketing, advertising and selling are changing. The Internet is far more complex and interesting than many could ever suspect. Its impact on marketing and advertising and, perhaps, entire economies has only just started.
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Joined: 26 Jun 2016
Posts: 409
Location: Cornwall, England

PostPosted: Sun May 07, 2017 8:16 am    Post subject: Reply with quote

Thanks Charles for your insight. As you say, my May/June bookings are only 50%, but mid July to mid Sept are excellent. I've just seen my first Homeaway TV advert this year (SKY news). I wonder if they are just responding to the recent Airbnb TV adverts.
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Joined: 10 Sep 2008
Posts: 2154
Location: UK

PostPosted: Sun May 07, 2017 8:19 am    Post subject: Reply with quote

First time in 12 years we have had to offer short breaks late May Bank Holiday.
It is better to remain quiet and have one think you are stupid, than to open your mouth and remove all doubt....
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Joined: 08 Mar 2016
Posts: 441
Location: Cornwall

PostPosted: Sun May 07, 2017 12:55 pm    Post subject: Reply with quote

Yes 50% in May, despite offering short breaks, dropping the price a bit and lots of advertising. It's a bit scary that we are at the mercy of the big boys advertising. June on is looking good though.
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