Premium hotels are popularising long stays, offering feel-at-home suites with kitchen islands, areas to work and rest and programmes such as cocktails, cooking sessions with chefs
Feel at home at a luxury hotel. To boost their occupancies and revenues and gain an edge over increasing competition from homestay players, premium hotels are popularising long stays that stretch beyond 15-20 nights.
Overnight guests at luxe properties located in metro cities mostly constitute corporate clients, with a handful of medical tourists and patrons thrown in time and again. But to encourage guests to stay for longer durations, hotels have started introducing features that convert sterile rooms into cosy apartment suites with a homely touch.
Globally, Hyatt, through its Hyatt House offers feel-at-home suites with areas to work and rest, apart from living rooms and kitchen islands, besides providing credits on food and laundry.
“Long stay travellers benefit the brand by becoming our brand ambassadors, vouching for the authentic care and services we are known for,” says Fredrik Blomqvist, general manager, Four Seasons Hotel Bengaluru.
According to Pankaj Wadhwa, director of sales and marketing, Sofitel Mumbai BKC, long stays benefit hotels in terms of building goodwill through word-of-mouth about the brand. “A satisfied traveller who admires the facilities provided by the property and chooses the hotel again while travelling to the city accredits loyal customers to the property, which goes a long way in the success of the hotel. As companies relocate some of their employees for temporary stints in other cities, it helps to build a rapport with the corporate itself, and encourages an increase in the amount of business done between the corporate and the hotel.”
A long-stay guest, apart from occupying the room for a lengthier duration, ends up using ancillary facilities like the spa, restaurants, bars, business centres and transportation services; bringing in greater revenues to the hotel brand.
Amitabh Rai, general manager, The Ritz-Carlton, Bangalore, says, “From a business perspective, long stays lead to an increase in weekend occupancy, F&B (food and beverage) and spa revenues.”
Long-stay guests at premium hotels are mainly globe-trotters and international corporate/leisure travellers. As per hospitality industry data, international tourist arrivals in India are expected to reach 30.5 million by 2028, from about 10.18 million this year. This would provide a big boost to the concept of long stays at hotels, say experts.
Long stays can significantly enhance the average daily rate (ADR), which indicates the income generated from occupied hotel rooms over a period of time, feel experts. ADR in India had dropped to around $85 in 2016-17, from a high of almost $199 in 2007-08, as per data by business intelligence agency Statista. The average room tariff per night in a premium hotel in India fell to about $180 per room per night at present, from about $250 in 2007-08, with operational costs and overheads shooting up.
“With global financial markets slowing down or stagnating, corporate and leisure travel witnessed a dip, compelling hotels to slash rates and offer greater discounts and thereby stare at losses. By promoting long stays, properties are trying to work their way up, while remaining competitive,” say experts.
Wadhwa says in the past year, long stays constituted 15% of their overall occupancies, “and it is certainly on a steady rise.”
According to Rai, they have noticed about a 43% growth in the long-stay business, “which is again a testimony to the inspired and personalised experiences we are committed to designing for our guests.” With premium properties biting the long-stay bait, brands are sharpening their unique offerings to stand apart from the competition. The Ritz-Carlton, Bangalore has customised programmes for children of long-stay guests that help them interact with the surrounding culture and nature. “We also organise cooking sessions with our chef brigade to engage the long stay guest’s family. Moreover, long stay cocktails are organised at regular intervals to allow guests to network and socialise with other long stay guests,’’ says Rai.
Four Seasons Hotel Bengaluru, meanwhile, has designed facilities to organise tailor-made business requirements like private office amenities, personal fitness training; apart from having on board a residential service manager and a facility coordinator to “ensure the needs of long staying guests are taken care of,” says Blomqvist.
CHECKING-IN BIG BUCKS
30.5 mn – International tourist arrivals in India by 2028
$180 – Per room per night is avg. tariff in a premium hotel in India at present, down from $250 in 2007-08
- Long stay is a benefit for hotels in terms of building goodwill through word-of-mouth about the brand
- Long-stay guests use ancillary facilities like spas, restaurants, bars, business centres, bringing in greater revenues
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