Opportunity for Hotels to gear up again after the Lockdown due to COVID-19
Travelling to a new city can be scary for a business traveller! Most of the corporate travellers struggle to find good working space and spots in a new city. They end up working from airport’s waiting area, hotel room or cafe. This might have huge impact on the productivity and comfort. Even if they find out some fancy cafe and open spaces to work. Such spaces can be noisy and unsafe. Also to and fro travel from such work areas to hotel is time consuming and taxing. And the number of people going through this situation is Huge. As per (DCSPlus) In United State alone, about 1.3 million business trips occur each day.
Collaborative Workplace at Hotel
When there is a problem there is an opportunity and this pain point of digital nomads can be solved if unused areas of hotel can be remodeled into a co-working space. If a digital nomad gets an economic workplace environment in a new city, in the Hotel they are staying they will surely hop into it.
Hotel and Co working Space! How is it a perfect Combination?
The hotel Industry has realized this gap and have taken a big leap, Hospitality behemoths like Accor, Marriott have started remodeling their lobby space and unused areas into comfortable workspaces, this not only attract MICE tourism but area locals even.
According to Lauro Ferroni, (Global head of Hotels & Hospitality Research at JLL), “It could be a big opportunity from Hotel Standpoint. Coworking is in high demand, so any thoughtful attempts from hospitality operators to capture some of that demand are likely to be fruitful.”
The Marriott International-owned Sheraton Hotel & Resorts is revisiting around 400 lobbies in an effort to make the spaces more work-friendly. Sheraton is reportedly planning to outfit the new lobby spaces with “productivity tables” that will contain USB ports, rentable drawers and Power Outlets.
Accor Hotels has come in a Joint venture with Bouygues Immobilier to accelerate the growth of Nextdoor in France and Europe. They have aimed to create 80 collaborative Nextdoor workspaces by 2022.
Marriott International has also implemented trendy, millennial-focused co working spaces at their Moxy hotels locations. During day, Moxy Hotels’ co working spaces boast comfortable, modern workspaces for the Entrepreneurs or business traveler; In night, the spaces transform into quintessential hangout and party spots for members.
With the number of co working members expected to jump to 3.8 million in 2020, it is only natural for hotels to capitalize on this feature.
Benefits of developing Coworking space in the Hotel?
1.) It spreads beyond the workspace.
When you have more people spending time it’s an added revenue as sales of other division of the hotel such as restaurants, lobby shops, cafes and more increases, as visitors look to explore the facilities and remain under one roof.
2.) There is a Huge demand
Plug n Play office space demand has increased by 21% annually since 2010, and shows no sign of slowing down. With so many travelers looking for flexible places to work, providing that service where they are staying is almost a no-brainer.
3.) The Work will happen somewhere
Employees especially those traveling for their jobs get work done in coffee shops or in a restaurants. If hotels provide them with superior options it will become their first choice for both local companies and business travelers.
4.) It can be Basic
Workers are mainly looking for Wifi, charging spots and a place to get some work done. It doesn’t have to have a large team involved minimal staffing will work.
5.) It boosts revenue
Renting out your unused public space for an hour or for a day offers an added revenue stream with no such significant capital Expenditure and Operational Expenditure. Plus its irrespective of season.
6.) It Increases Loyalty
Besides generating revenues, this gives positive guest experience and makes them feel that their requirements are fulfilled. They are more likely to stay each time they are in town.
Is this a threat for already Existing Coworking players in the market:-
There is a complete contrast in the customer segment of shared office Space players and workplaces at hotels, the first one creates managed workplace for large teams or startups using for long durations while the later targets individuals using space for short term periods. Coworking spaces like Wework, 91springboard, Innov8, Cowocoli also provide other immaterial benefits to startups using their space like Mentor Support, Industry Expert Training and VC connects which make them their first choice.
The only way for Hotels to Co-exist and grow in the market would be by collaborating with Existing Coworking Brands because the magic behind success of Coworking Space business has been “Community” which these brands have already established and digital nomads will surely get attracted to use workspaces with growing communities.
Some individuals might be reluctant to their traditional methods of running hotel but in coming time business travellers will expect higher standard. In addition to essential services such as Laundry, quiet rooms and Concierge MICE Travellers will also need services like High Speed WIFI, Ergonomic furniture, Meeting Rooms and productive workspace.
It is the perfect opportunity for Hoteliers to standout and be the first mover so as to serve both guests and local professionals together in dynamic, centralized locations and get additional revenues. This trend will not only survive and continue to thrive, but it shows no signs of slowing down and is going to make a positive impact on hospitality sector, local economy and the coworking industry itself for years to come.