The way people travel is changing. Technology is not only shaping the way in which people share their experiences, it is also shaping where and how they do it. Home-sharing tech companies such as Airbnb have existed for less than a decade, but have managed to cause significant disruption in the hospitality industry. This disruption is forcing hotel companies to revamp the traditional model of doing business and to reinvent themselves to compete.
“One of the things that people are trending away from is the idea of people spending time in their rooms. [Before] it was about larger rooms and larger suites and people maximizing the ability to do things in their room, [but] younger guests are more interested in spending time in common spaces,” Colliers International Valuation Services Director Ryan Sikorski said. Here are six ways hotel brands are reinventing themselves to stay relevant during a time of tech dominance and intense competition.
The concept of co-working has risen in popularity over the past few years. While spaces have traditionally been located primarily in office buildings, that is changing as hoteliers appeal to business travelers by including co-working options in their facilities.
These corporate amenities are particularly essential as Airbnb begins to target the business traveler demographic.
“Airbnb’s next stated objective is to eliminate some of the stigma that goes with the business traveler staying in an Airbnb. They are making efforts to increase the comfort level that a business traveler would have going that route,” Sikorski said.
Serendipity Labs, a company that delivers co-working as an upscale hospitality brand, saw an opportunity to merge the two industries and recently 3H Group Hotels, SSM Hospitality and Hunter Hotel Advisors joined the concept as franchisees.
They are not the only ones jumping on this trend. Serendipity has more than 100 properties under development.
“There’s this huge market where people want to work and the way people work is changing. We think we’re way out in front [of the hospitality industry]. This is the early days of this category and we’re setting standards,” Serendipity Labs CEO John Arenas said.
LiquidSpace, an online marketplace for flex space based out of Palo Alto, California, has also ventured into the hospitality industry. More than 30 major hotel chains, including Hilton, DoubleTree, Embassy Suites and Hampton have signed on to offer office and meeting space for users of the app.
While Marriott International launched its own workplace rental concept, called Workplace On Demand, it is also working with LiquidSpace to market its services on the app. Spaces are for both hotel guests and business professionals who need to quickly drop in and work.
Source: Lara O’Keefe, “6 Ways Hotel Companies Are Reinventing Their Product To Compete”, Bisnow National