Traditionally, hotels primarily focused on accommodating guests for overnight or extended stays, considering them the most common and profitable booking options. However, with changing consumer behaviour and preferences, a notable trend has emerged in the hospitality industry: the rise of micro-stay in hotels.
And trust me, it’s more than just a trend. Contrary to its name, the benefits of micro-stay aren’t “micro” for your hotels.
So, let’s explore more about the innovative concept of micro-stay and discover how it offers an unconventional solution that caters to modern travellers’ needs and opens up exciting new possibilities for hoteliers as well.
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Understanding Micro-Stays
Unlike the typical overnight or long-term stays, micro-stays offer guests the flexibility to book rooms for shorter durations, often ranging from a few hours to less than a day.
For example, consider a business traveller who has a few hours between flights or meetings. Instead of spending those hours at the airport or a coffee shop, they can choose a micro-stay option to freshen up, catch up on work, or even take a quick nap in a comfortable hotel room.
Similarly, leisure travellers may opt for micro-stays to rest and recharge during a long layover or to freshen up before attending an event or exploring a new city.
This provides the guest with convenience and comfort while enabling the hotel to earn more from otherwise vacant rooms during off-peak hours.
Benefits for Hoteliers
While micro-stay hotels offer greater flexibility for travellers, they also bring a unique set of advantages for hoteliers such as:
1. Maximising Revenue
Micro-stays present an opportunity for hotels to optimize revenue by efficiently utilizing their inventory to the fullest. By offering rooms for short-term stays during periods of low demand, hotels can generate additional income that would otherwise be lost.
Plus, you can let the room be booked multiple times in a day, maximizing revenue for the same room within the same time.
Moreover, micro-stays contribute to a more balanced revenue stream, reducing the reliance on peak-season bookings and providing a steady flow of income throughout the year.
2. Catering to Changing Consumer Behavior
The travel habits of people have changed in recent years, as have their preferences when it comes to accommodation. They prioritize flexibility and convenience, seeking options that fit their dynamic schedules. And, micro-stay hotels align perfectly with this trend, offering guests the freedom to book rooms for shorter durations.
Whether it’s a quick rest during a layover or a brief workspace between meetings, micro-stays cater to the on-the-go lifestyles of today’s travellers. By embracing this shift in consumer behaviour, hoteliers can attract a broader range of guests and enhance overall customer satisfaction.
3. Attracting Different Segments of Guests
By offering flexible booking options tailored to shorter stays, such as hourly or daytime rates, hotels can attract a wide range of guests, including transit passengers seeking a place to rest during layovers, tourists looking for a quick refreshment stop, and even locals in need of a temporary escape or meeting venue.
This versatility in catering to various guest needs allows micro-stay hotels to tap into multiple market segments, expanding their customer base and revenue potential.
4. Competitive Advantage in the Market
Providing micro-stay options grants hotels a competitive edge in the market. By meeting the rising demand for flexible lodging choices, they can distinguish themselves from competitors and appeal to a wider audience. This innovative offering showcases their adaptability and responsiveness to evolving consumer preferences, enhancing their appeal to modern travellers seeking convenience and customization.
Despite having so many benefits, it might seem that offering micro-stay options could be a risky proposition. But in reality, as travel behaviours evolve, there’s a growing demand for short-term accommodation solutions.
People increasingly seek flexibility and convenience in their travel plans, making micro-stays an attractive choice for many travellers. By incorporating micro-stay options alongside traditional bookings, hotels can tap into this emerging market segment and boost their overall profitability.
Marketing and Promoting Micro-stay Offerings
In the competitive landscape of the hospitality industry, effective marketing and promotion are crucial for successfully introducing micro-stay offerings to potential guests.
Micro-stays are often spontaneous bookings facilitated by mobile, enabling guests to find great deals on short-term stays at local accommodations. So, partnering with Online Travel Agencies (OTAs) such as Booking.com or Agoda and booking platforms specific platforms like Brevistay, which are tailored for micro stays, can significantly expand your reach to the right audience.
Highlighting the unique selling points of your micro-stay offerings, such as flexible check-in/check-out times, affordable hourly rates, or tailored amenities, can further attract potential guests.
Additionally, leveraging targeted digital marketing techniques, such as social media advertising and search engine optimization, ensures that your micro-stay offerings are effectively communicated to the right audience at the right time, driving bookings and revenue.
Future Trends and Opportunities
- Growth Potential
Micro-stay accommodations are expected to continue gaining popularity as travellers increasingly prioritize flexibility and convenience in their lodging choices. Hotels that offer guests the flexibility to book rooms for shorter durations, catering to a wide range of needs such as short layovers, business meetings, or leisure breaks can tap into a growing market segment seeking convenient and adaptable lodging solutions.
According to the latest data from Future Market Insights (FMI), the Micro Hotel Market reached a valuation of US$ 84 billion in 2022. It projects that this market is expected to grow to US$ 150.43 billion by 2032
This growing demand signifies a significant opportunity for hoteliers to tap into this new market segment and diversify their revenue streams.
- Personalization
As guests seek more personalized experiences, you can differentiate their micro-stay offerings by providing tailored amenities and services. This could include offering customizable room configurations, personalized recommendations based on guest preferences, and targeted promotions to enhance guest satisfaction and loyalty.
For example; offering customizable room packages, including “workation” setups with dedicated workspaces, or “daycation” packages focused on relaxation and amenities like spa access.
- Integration of Technology
Technology has been, is, and will continue to be the stairway to growth in the hospitality industry. Embracing technological advancements not only enhances operational efficiency but also elevates the guest experience.
Hoteliers can leverage innovations such as self-service kiosks and mobile apps for check-in, check-out, and room controls to enhance convenience and streamline operations as well.
Overall, micro-stays offer exciting opportunities for hotels to increase revenue, enhance guest experience, and adapt to changing travel trends.
As the market evolves and technology advances, micro-stays are poised to become an even more prominent and sophisticated segment of the hospitality industry.
Conclusion
In essence, micro-stay hotels represent more than just a short-term solution; they signify a shift towards a more dynamic and guest-centric approach to hospitality.
Micro-stays offer a win-win situation for both guests and hoteliers. Guests enjoy on-demand affordable stays, while hotels unlock new revenue streams by filling previously unused rooms and catering to a wider range of guest needs.
By embracing this concept and staying attuned to emerging trends, hoteliers can position themselves for long-term success and continued growth in the dynamic world of hospitality.
