Work out booking lead time instantly with clear inputs, formula shown and shareable results.
Average booking lead time drives revenue management: a long lead time allows early rate discipline, while a high share of short-lead bookings means last-minute pricing determines the result. The gap between lead time and cancellation deadline is the window of unreliable demand.
Average lead time
Average = Sum of lead times / Number of bookings
Exposure window
Exposed days = Average lead time - Free cancellation deadline
Because it determines how much of demand is already known. Short lead times force reactive pricing and reduce the value of long-range forecasts.
Not necessarily, but it increases forecast error and makes overbooking decisions harder, so it raises the value of a strong direct channel.