How to Increase Revenue Using Extended Length Stays

One of the challenges that revenue managers face daily is developing new and innovative ways to increase revenue at their properties.

Recently, small hotel trends are indicating that extended length stays are rising among travelers, so this may be an opportunity to generate additional revenue for your hotel property.

What Products Can be Offered During Extended Length Stays?

Guests who are looking to stay for longer than seven to 14 days would be considered extended stay guests, and their needs are different from those of traditional leisure travelers.

Extended stay guests may require extra services, such as laundry services and high-end housekeeping services. In addition, they may also be looking for small hotels that offer premier amenities, such as common rooms, fitness centers and outdoor living spaces.

You can market specific products and amenities to extended stay guests to motivate them to book with you.

How Should Extended Length Rooms Vary from Traditional Small Hotel Rooms?

A traditional room at a small hotel needs to include the basic necessities, such as a bedroom outfit, a sitting chair, a desk, a bathroom and possibly a balcony or patio area. An extended stay room will need to be different from traditional rooms, as these guests have different needs and desires. In most cases, the largest difference is the presence of a kitchenette within the room. This allows extended stay guests to cook their own meals in a way that is private, comfortable and affordable. In addition, an expanded living area or sitting room may allow an extended stay guest to feel more comfortable during their lengthy visit at your property.

What are the Benefits of Extended Length Stays?

There are several benefits to extended length stays for you as a hotel operator, including:

• The opportunity to earn additional revenue that lasts for a longer period of time. You should use a different pricing strategy for your extended stay rooms in order to encourage guests to book for longer stays.
• You can attract a different target audience to your traditional rooms. For example, you may be relying heavily on leisure travelers at your small hotel and have found out which types of leisure travelers book your traditional rooms. But with an extended stay room, you would be able to market your products to business travelers who may be looking for a home-like atmosphere during their next trip abroad that lasts for several weeks.

There are also benefits for guests who are searching for extended stay options:

• Guests are able to secure a larger room with more amenities for an affordable price. Extended stay rooms are priced differently than traditional rooms, which makes it more realistic to stay in one place for several weeks or months at a time.
• Guests benefit from the atmosphere at small hotels, where they can feel comfortable and get to know the people around them.

How Can Revenue Management Technology Be Used in Relation to Extended Length Stays?

Revenue management technology can help you evaluate the various factors that influence a guest to opt for an extended length stay, and this same technology can also use relevant data to help you develop an effective pricing strategy for these niche guests.

You will want to make sure that you revenue management technology also takes into account the various distribution partners that you use in order to attract guests who are interested in extended length stays.