What is a micro hotel?

A micro hotel is a type of accommodation that offers affordable sleeping spaces and flexible lengths of stay. Micro hotels can be defined in two ways. One definition describes micro hotels as ultra-affordable, space-saving accommodations that often take the form of capsules or pods. These are popular in busy cities and usually offer bare-bones amenities, such as a bed and power outlet to charge devices.

Another way to describe a micro hotel is as a hotel that offers micro stays instead of, or alongside, traditional hotel stays. These micro stays might be charged by the hour, rather than per night.

Usually a hotel stay would be a minimum of 18 hours, with check-in sometime in the afternoon, and check-out mid-morning or middle of the next day. However, micro hotels, micro inns, or other micro stay properties offer bookings from as little as three hours all the way up to 12 hours.

This blog will take you through everything you need to know about quick stay hotels and enable you to decide if they’re a strategy that’s right for you.

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Why are microstay hotels popular?

Micro hotels are popular because they can be convenient and affordable for travellers and guests who don’t require an overnight stay or who may want a very late check-in. Specific guest segments can often find micro hotels particularly useful. 

For example, business travellers and corporate guests enjoy the flexibility of not having to pay for a full night if they don’t plan on staying overnight or are not going to spend much time at their hotel. Flying in, using the hotel as a base to prepare for a meeting, and then flying back out becomes much more affordable if they can pay by the hour.

Leisure travellers can also seek out micro stays if they are visiting several destinations on their trip, they’re stuck between flights, or they simply want privacy and convenience to take a break and refresh during their day of exploring.

What are the benefits of offering micro stays?

Offering micro stays at your hotel can have a number of benefits:

You can attract last-minute guests

The majority of travellers that book micro stays often do so at the last minute via their mobile devices. This is because they often need or want accommodation within 24 hours notice. Offering micro stays will enable to you to maximise the sale of your inventory.

You can maximise revenue per room

Being able to book the same room multiple times per day on an hourly basis gives you the chance to make the room more profitably. Because you’ll have to turnover the room more than once, you can charge high hourly rates that ultimately make you more revenue than selling the room for an entire night.

It will also allow you to reach a broader range of guest segments, including business travellers and leisure travellers with unique requirements.

You can use them seasonally

Micro stays are a flexible offering for hotels and are not something you have to make available all the time, unless you want to make it a defining part of your brand.

Instead, you can use them in periods of low demand to generate revenue you might not otherwise have gained. This also reduces your reliance on peak season results, making your business strategy more stable all year round.

You can beat the competition

Not all properties will be comfortable or have the resources to offer short stays to guests. This means if you can, your property will be a more attractive option for travellers who desire flexibility.

How to market yourself as a short stay hotel

To ensure you catch the eye of travellers who are open to, or actively looking for, short stays, consider the following ideas:

Highlight the benefits for guests

It goes without saying that you need to advertise the fact that you offer short stays on your website and also on any third-party profiles such as Booking.com or Expedia.

You should also remind guests why a micro stay is a good option: the flexibility, the convenience, and the budgetary benefits. 

Create targeted packages

Create special packages designed for short stays, including “city break” deals with local attraction tickets or “business stopover” packages with airport transfers.

Craft a strong online presence

Make sure your website is highlighting elements that appeal to micro stay guests, such as your gym facilities or work spaces. You should also create some content or blogs with relevant keywords such as short hotel stays. Replicate these messages across your social media platforms.

Build local partnerships

Collaborate with restaurants, cafes, or event organisers to offer bundled packages that combine your short stay accommodation with local experiences. You could also integrate elements of the local culture and atmosphere into your hotel experience, making it a unique and memorable short stay destination.

How to boost micro stay bookings

Your marketing efforts will go a long way to bringing in micro stay bookings, but there are a few more best practice tips that will help you get travellers over the line:

  • Be efficient – Promote the ease and convenience of micro-stays at your hotel. Advertise features like streamlined check-in/out processes, luggage storage, and proximity to public transportation hubs or airports.
  • Be flexible – Offer flexible cancellation policies to encourage last-minute bookings for spontaneous travellers.
  • Be friendly – If you take a mobile-first approach to your website design, you can be sure your guest experiences will be mobile-friendly and that there will be less travellers abandoning their bookings.
  • Be decisive – If you’re going to commit to targeting micro stays, consider using tactics such as running social media ads and creating limited time promotions to capture the attention of last-minute bookers.

By Dean Elphick

Dean is the Senior Content Marketing Specialist of Little Hotelier, the all-in-one software solution purpose-built to make the lives of small accommodation providers easier. Dean has made writing and creating content his passion for the entirety of his professional life, which includes more than six years at Little Hotelier. Through content, Dean aims to provide education, inspiration, assistance, and, ultimately, value for small accommodation businesses looking to improve the way they run their operations (and live their life).