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Maximise hotel revenue with micro stay opportunities

Hotel innovations Guest experience Revenue management

What is a micro stay?

A micro stay is a short-term hotel booking that allows guests to use a room or hotel amenities for a few hours rather than an entire day or night. These bookings typically serve travellers with quick layovers, business professionals needing a short rest or meeting space, and locals looking for a day getaway. Micro stays are popular, especially in busy urban areas. They offer guests flexibility and help hotels boost revenue without major changes.

As our lives get busier, the demand for flexible accommodation is rising. Today’s travellers are often seeking convenience, whether they’re in transit or just need a comfortable place to recharge during a hectic day. The concept of micro stays aligns perfectly with this trend, offering a viable solution to common pain points in the hospitality industry.

Types of micro stay hotels

Micro-stay options have evolved, and hotels now offer various formats:

  1. Hourly stays. Rooms are rented by the hour, giving travellers flexible access and accommodating diverse schedules. This model is particularly popular in urban centres where demand fluctuates throughout the day.
  2. Day-use rooms. Guests can reserve rooms for daytime hours, usually from morning to early evening. This caters to needs like relaxing between flights or finding a place to work.
  3. Amenity-only stays. Some hotels allow non-guests to use only their spas, pools, and fitness centres. This is for those who want to enjoy the hotel's amenities without needing a room.

Examples of micro stay hotels

Hotels worldwide have adopted micro-stay options to serve different market segments. For example:

  • Dayuse.com partners with global brands to offer daytime hotel rooms in major cities. This helps hotels reach a wider audience and fill empty rooms.
  • Yotel caters to short-stay business travellers. It offers compact rooms with modern amenities and efficient service.
  • CitizenM offers stylish, affordable rooms for quick check-ins and check-outs. They appeal to tech-savvy guests who value design and functionality.
  • Accor offers "Hotel for the Day" packages in several brands. They appeal to business and leisure travelers in busy urban areas.


What are the benefits of offering micro stays?

Maximise room utilisation
Hotels can achieve more substantial room turnover by renting rooms multiple times daily. Instead of waiting for nightly guests, rooms can be cleaned and re-let, optimising occupancy and boosting revenue even during low-occupancy periods. By leveraging micro stays, hotels can transform their perishable inventory into a revenue-generating asset.

Attract last-minute guests
Micro stays appeal to spontaneous travellers. This includes those with unexpected delays and local guests needing a meeting or break space. Hotels with flexible booking can attract these guests at short notice, boosting revenue. Mobile apps or partnerships with booking sites can enable quick bookings and boost visibility.

Attract different market segments
Offering micro-stay options allows hotels to reach new demographics, such as locals, solo travellers, and young professionals seeking flexible workspaces or affordable relaxation. This diversification enables hotels to increase brand visibility and loyalty among otherwise overlooked segments. Also, micro stays can attract niche markets. These include families needing short breaks and tourists seeking a base for day trips.

Maximise RevPAR
RevPAR (Revenue Per Available Room) can be maximised with micro stays by allowing hotels to earn multiple incomes on the same room in one day. This additional revenue boosts the hotel’s overall profitability, especially during off-peak times. By employing dynamic pricing strategies for micro stays, hotels can adjust rates based on demand, maximizing revenue without alienating potential guests.

Adjust to seasonality
Seasonal variations often lead to fluctuations in hotel demand, but micro stays help fill rooms even in low seasons. Short-term rentals help hotels keep steady occupancy rates. This is despite the tourism calendar. They can adapt to local events and busy periods. For instance, hotels located near convention centres can offer micro stays to attendees who need a place to recharge between sessions, ensuring that they capitalise on every potential booking.


The main challenges for implementing micro stays

Managing guest expectations
The short-stay model means hotels must manage guest expectations about room size, amenities, and service frequency. Brief but complete info on each micro stay can help ensure satisfaction and good reviews. Clear communication about check-in and check-out is crucial. Micro stay guests may have different requirements than traditional overnight guests.

Pricing
Finding the right pricing model is crucial. Micro-stay rates must be attractive enough to appeal to guests but profitable for hotels. Testing various price points and dynamically adjusting rates based on demand can help hotels achieve this balance. Revenue management strategies can help refine pricing for micro stays. They should use market analysis, competitor pricing, and customer feedback.

Housekeeping and cleaning
Frequent room turnovers pressure housekeeping teams to clean faster for the next guest. This is crucial for the success of micro stays. Efficient operations are key to maximizing profits without overburdening staff. Implementing streamlined cleaning procedures and ensuring proper staffing levels during peak hours can alleviate some of this pressure.


Housekeeping and operations solutions for micro stay

Adapting hotel operations to accommodate micro stays often involves rethinking housekeeping, scheduling, and guest service. Technology plays an integral role in achieving this.

How technology aids efficiency
Modern housekeeping solutions use data analytics to streamline cleaning schedules, assigning tasks in real-time and tracking each room’s readiness. AI and IoT devices, such as in-room sensors and mobile apps, also support operations by monitoring guest departure and arrival times. This approach ensures rooms are quickly turned over. It won't sacrifice cleanliness or quality.

For example, mobile housekeeping tech lets staff get real-time room updates. This helps them prioritize cleaning schedules. Automated systems can also monitor occupancy and alert housekeeping teams when a room is vacated, allowing them to start cleaning sooner.

How Hoop’s housekeeping module transforms micro-stay management
Hoop’s housekeeping module helps hotels better manage frequent room turnovers through features like task automation, real-time updates, and error-reduction tools. The module enables hotels to coordinate between departments seamlessly, track room readiness, and update occupancy status instantly. With Hoop’s technology, hotels can offer micro stays without adding stress to their staff, ensuring a smoother and more efficient guest experience.

Also, Hoop's analytics let hotels track usage patterns. They can then optimise cleaning based on actual guest behaviour. This can reduce cleaning times and improve resource use. It will boost guest satisfaction and hotel profits.


Conclusion

Micro-stay offerings allow hotels to appeal to diverse guest needs, increase room turnover, and make full use of their spaces. By utilising technology for efficient operations, hotels can manage the unique challenges posed by micro stays and maximise revenue from this emerging market segment. Micro stays are a smart revenue strategy. They also meet travellers' growing desire for flexibility and convenience. As guest preferences continue to shift, micro stays offer a profitable model that maximises occupancy, enhances guest satisfaction, and prepares hotels for the future of flexible hospitality.

In conclusion, hotels that embrace this trend can thrive. Those that use effective strategies, including advanced tech, will survive in the competitive hospitality industry. As micro stays gain traction, their potential is clear. They can boost hotel revenue and improve guest experiences. This is a new era for hotel management.