A rapidly growing industry
There’s a real opportunity for traditional hotels and vacation rentals to capitalize on the long-stay segment. A report from Kalibri Labs and The Highland Group reveals that guests staying seven consecutive nights or longer spend 57% more at traditional hotels than guests at serviced apartments (extended-stay hotels, as they are called in the US). Additionally, the report highlights that traditional hotels are hosting 28% more extended-stay room nights than serviced apartments, further highlighting consumer appetite for long-stay product offerings.
Targeting new guest segments
The reality is, in today’s travel landscape accommodation providers should explore every growing segment possible in order to fill rooms. The rise in long-stay demand offers partners an opportunity to reach and capture new markets - such as domestic vacationers, families, remote workers, and expatriates, to name a few - while boosting occupancy and increasing revenue.
Along with helping partners secure revenue for a longer horizon, long-staying guests can defray (provide money to pay for) labor costs associated with constant room turnover and decrease operational hassle.
With long-stay guests, the operational pressure is decreased while the occupation is increased
What long-stay guests are searching for
Our user research reveals the main reason leisure travellers opt for a longer length stay is to relax and enjoy peace of mind in one place. Additionally, guests who are looking to get away long-term or work from another location prefer to stay at a property that has a high review in cleanliness.
Long-stay travellers are more likely to look deeper into facilities and amenities of the property compared to short-stay guests. The longer the trip, the more important self-service becomes. These guests desire amenities that can make for a comfortable stay, such as having a wardrobe space and a coffee maker or kettle to ease into the days.
While both hotels and vacation rentals are very popular with travellers looking for longer stays, their preferences differ slightly when it comes to key criteria. Home bookers put more emphasis on privacy and their ability to be self-sustainable with included equipment, whereas hotel bookers expect professional services that enable them to switch off from their everyday life.
How partners can profit from Long-Stay deals with Urban Roomie?
To benefit from the increased demand for long stays, partners can set up attractive bi-weekly, monthly, and tri-monthly rates.
What also helps is an up-to-date listing that highlights the facilities long-stay guests are looking for - such as strong wifi, co-working areas, shared kitchen, gym - along with any unique facilities that can contribute to a comfortable stay.
These rates can be adjusted & readjusted to the individual business model, seasonality, location of the property, and revenue goals.
These rates should be built taking into consideration the rental prices of the traditional house market in the city or neighborhood where the property is located.
Continue reading Setting Up Long-Stay Rates