Many hotels had to adjust to changing business models as the pandemic continued. While corporate hotels have shifted their focus towards leisure travelers, resorts catering mainly to international guests are now dependent on domestic visitors. The ability to adapt to changing market conditions has helped properties be more successful. We are also seeing increased demand for extended-stay accommodation as travel gains momentum.
Extended stays, bookings lasting from a few weeks to several months, have risen due to remote working. This has created a new age of digital nomads who combine work and travel. Extended stay is also driven by workers and students moving to another country. They want a temporary home away from home but not being tied down to a long-term lease while they search for permanent housing. Extended-stay hotels have become a popular choice for families who want to live in a more comfortable, affordable place.
Hotels have a great opportunity to offer extended stays. Continue reading to learn how you can welcome extended-stay guests at your property.
Extended-stay Advantage
Extended-stay bookings can be a lucrative and efficient source of revenue. Although the ADR (Average daily rate) for extended stays may be lower than that of short-term stays (but it is still higher than short-term stays), longer stays have a greater value due to higher revenue per booking (including ancillary revenues) and lower operating costs due to lower front-desk or housekeeping requirements. Because they maximize room occupancy and reduce operational pressure and the expensive gaps between bookings, longer stays are more efficient. Extended-stay guests are less likely to cancel due to their reasons for traveling.
Incorporating the extended-stay segment in your business can help to stabilize revenue during uncertain times.
Catering for extended-stay guests
Extended-stay guests are more likely to value certain amenities and conveniences than transient visitors. If you consider adding extended-stay accommodations to your business, make sure that your property can provide the amenities and conveniences extended-stay guests require.
Features and amenities of the property
Extended-stay guests want an accommodation that offers the comforts and conveniences of home. Extended-stay guests will appreciate certain features in their rooms, such as a kitchen, separate sleeping and living areas and comfortable workspaces.
Whether they are staying for long-term or short-term purposes, all guests expect great Wi-Fi. However, extended-stay guests may want to go one step further and offer in-room streaming, which allows them to stream their content directly from the guestroom TV. This will give them a true at-home comfort experience.
Extended-stay guests will need laundry services or facilities. Those traveling for work (or while on the road) may also require meeting rooms. Long-term guests want to maintain a healthy lifestyle. You can help guests who don’t live near a gym by partnering with them or offering in-room equipment such as hand weights, resistance bands, and yoga mats. ).
Extended-stay guests are more likely to value social spaces that foster a sense of community among other guests and the locals. You can make your property more inviting and comfortable by creating communal spaces for relaxation, study, work or socializing. A welcoming community space is all about airflow, furniture placement and plants.
Pricing
Extended-stay hotels offered more affordable accommodation and discounted prices based on length of stay. This is possible because hotels can guarantee occupancy and lower operating costs due to lower guest turnover. Additionally, there are fewer staff and less housekeeping required. The lower operational costs of a longer stay can be passed onto the guest without affecting hotel profits. This is a win-win situation.
Reservation Management
You will need flexible property management software (PMS), which can accommodate extended-stay rates and billing. It also includes useful features like a monthly calendar view and LOS reporting.