Hourly stay – a creative approach for lodging industry

Linh Ngan
Linh Ngan
06:46:33 - July 28, 2020

As the demand for hourly stay becomes more and more popular, hotels and other accommodation businesses are also changing to become more flexible in providing hourly services in order to optimize their occupancy and profit.

Why is hourly stay becoming more and more popular?

In the past, it was obvious that every business in the lodging industry charged its guests by the day and it nearly became an immutable rule of the whole lodging industry. As society evolves, the demand for convenience and comfort as well as fresh experiences during stays from the customers is gradually increasing. Hotels become not only a place to relax when traveling but also a quiet workplace with a stable internet connection or a resting place for a few hours before the next event. Especially, business travelers or those who need to rest for a few hours before taking the transfer flight may not be able to use all services and time offered at the property; however, they still have to accept to spend more than their needs since the hotels only charge them per night.

Therefore, in order to meet the increasing demand for hourly stays, hotels need to adapt and constantly innovate to create new policies that can satisfy a large number of these guests. For properties located near popular pilgrimage sites, airports, railway stations or hospitals, hourly stay is quite a lucrative option.

What benefit can hourly stay bring?

  • Increase profits

By allowing guests to book rooms for certain hours, hotels seize the opportunities to sell the same inventory more than once a day (the traditional booking of rooms per night). The revenue from each room with hourly services is definitely lower than the per-night rooms. However, the total revenue earned from a room in a day by selling it multiple times will certainly far exceed the original full day rate.

  • Optimize room occupancy

During the low season, or especially during the global health crisis at the moment, room occupancy in most hotels is inevitably low due to the great drop of guests. Therefore, applying hourly stays will help these properties take advantage of local guests’ needs yet still improve and increase their room occupancy. In addition, during the off-peak hours (usually morning and afternoon), hotels can also apply preferential rates to promote their room sales, improving their occupancy within the day.

  • Enhance brand awareness

Luxury hotels often have room rates that are much higher than the financial ability of the majority of guests. This hourly stay approach will make these hotels become affordable and therefore reach to a wider range of customers to give them high-class experiences without spending too much. Thanks to that, the reputation and quality of the hotel will be more promoted widely among customers.

How is hourly stay applied around the globe?

With the increasing trend of using technology in searching and selecting services and products, OTA (Online Travel Agent) in this field will play an important intermediary role to help businesses connect with potential customers with ease.

French start-up dayuse.com is one of the first platforms to allow day booking. Currently, dayuse.com collaborates with various hotels in Paris, London, New York, Berlin and Madrid. Dayuse.com has generated over one million bookings and boasts over 5 000 hotels across 25 countries. In addition to the usual hotel booking service, dayuse.com also marks hotels that allow hourly rentals, day rentals, staycation, 9 to 5 rentals, early check-in/late check-out, etc. so as to meet multiple needs from the guests.

With headquarters in Barcelona and Mexico, ByHours is associated with countless hotels in European countries (Germany, Spain, Austria, France, England, Italy, Belgium) and Latin American. Besides hourly rates, ByHours also lets guests know whether the hotel is new, airport-nearby, or offering promotions.

In India, there is Brevistay with a range of hotels across the country that allows flexible check-in and offers many special discounts for guests. The hourly services available at Brevistay include 3 hours, 6 hours and 12 hours. In addition, guests can book directly on the website and pay later when arriving at the hotel. Brevistay especially emphasizes on ensuring the privacy for couples staying at the hotel.

In Korea, there is also a “unicorn” named Yanolja. After established, Yanolja has grown at a rapid pace and became the most popular booking site in Korea, partially helped to eliminate prejudices against love hotels. Yanolja also acts as a consultant to guide hotels, helping them make improvements oriented to the wishes and tastes of guests. In addition to working with hotels, Yanolja also offers its users other incentive packages for restaurants, amusement parks, transport and other activities.

There are also many start-ups in Vietnam focusing on this hourly stay. Seeing great potentials in market demand, many start-ups such as Go2Joy, Grabhotel or Quick Stay are formed, connecting guests with hotels, bringing suitable stay for customers and supporting hotels’ profit. All these start-ups provide original full-day services as well as hourly services depending on the needs and choices of guests.

THANKS FOR SPENDING TIME WITH DESTINATION REVIEW !

Stay updated with our breaking news and insightful viewpoint on tourism business, management and development.
By submitting this form you agree to receive email communication from Destination Review
Hourly stay – a creative approach for lodging industry

THANKS FOR YOUR
REGISTRATION!

The requirement was accepted, please check your email for the document.
Close