By Jared Lerner
In the competitive landscape of the hospitality industry, hotels are constantly seeking innovative ways to optimize their operations, increase revenue and enhance guest satisfaction. One such way to do this is via short-term microstays, which allow guests to reserve a room for two to 12 hours in the daytime and access all the amenities of an overnight stay. By embracing this concept, hotels can tap into a new market segment, improve their overall efficiency and elevate the guest experience to new heights.
One of the key benefits of short-term stays is the ability for hotels to fill their unused capacity during off-peak hours when vacancy rates tend to be much higher. By offering rooms for shorter pockets of time, hotels can capitalize on periods of low occupancy and maximize their revenue potential. This flexible approach allows properties to cater to a different demographic of guests, including jet-lagged travelers on long layovers, busy professionals who need to freshen up before an important meeting or anyone else who simply wants a few hours of rest and relaxation in the middle of a hectic day.
Microstays also provide hotels with an opportunity to connect with budget-conscious travelers who may be priced out of their rooms otherwise. By offering these rooms at a 40%-to-50% discount off standard overnight rates, hotels can cater to a previously untapped segment and onboard them to their loyalty programs. On top of that, this strategy also allows them to capture incremental revenue that would otherwise be left on the table. If a dedicated cleaning person is assigned to these rooms in particular, then a property would still net a nice margin after taking wages and third-party vendor fees into account (the latter referring to external sites that advertise these rates and get a commission for it).
In addition to maximizing revenue, short-term hotel stays can also improve operational efficiency for hotels. By implementing a flexible booking system that accommodates shorter duration stays, hotels can streamline their check-in and checkout processes, optimize room turnover and enhance operational productivity. These efficiency gains are particularly beneficial during peak hours or busy periods when hotels experience a high volume of guest arrivals and departures. By offering short-term stays, hotels can reduce wait times, improve guest flow and provide a seamless and hassle-free experience for all guests, thereby enhancing their reputation and fostering customer loyalty.
Overall, short-term hotel stays present a valuable opportunity for hotels to maximize revenue, improve efficiency and enhance the guest experience. By filling unused capacity, generating additional revenue through hourly scheduling, optimizing operational processes and meeting the evolving needs of travelers, hotels can leverage short-term stays as a strategic tool to achieve their business objectives and stay ahead in a competitive industry. Embracing the concept of short-term accommodations can help hotels unlock new sources of revenue, attract a broader customer base and elevate their overall performance in a dynamic and ever-changing market.
Jared Lerner is the founder/CEO of Nappr, a marketplace that offers thousands of daytime hotel rates across 24 different countries.
This is a contributed piece to Hotel Business, authored by an industry professional. The thoughts expressed are the perspective of the bylined individual.
