Adaptation in the hotel industry is not new. Even before the pandemic, hoteliers were facing disruptions from the sharing economy and technology demands as well as increased pressure to enhance the guest experience.
Today’s traveler pays attention to health, safety, and sustainability. More than 41% of travelers surveyed by travel technology company Amadeus admit they still have fears about contracting COVID-19 during their travels. In this same group, almost half shared that they value sustainable travel options — which include reducing the number of trips they make — and staying in place longer.
All of this ties into a simple fact: Travel is evolving. The trend towards longer stays means that the post-COVID traveler is there as much for the experience as they are for the escape. According to a survey released by the European Commission, nearly half of travelers across Europe choose destinations based on local events, gastronomy, and the natural environment. Close to one-third consider the activities available in the area. As such, where we stay when we travel abroad is more than a room; it’s a home base to explore another part of the world.
If you can work from home, you can work from anywhere
One valuable lesson we learned from the pandemic was how to harness technology to keep us connected whether we travel for business or for pleasure. With the click of a button, we can communicate with our colleagues, clients, customers and have access to work files without setting foot in the office. Being untethered to an office gives employees more flexibility to balance work with their personal lives.
Employees are taking advantage of the opportunities afforded by remote work by blending their work and their vacations. The extended-stay segment has been a bright spot in the hotel industry; revenue increased across all segments in the extended-stay space, exceeding their pre-pandemic totals with a more than 40% jump.
More than 1 in 3 business travelers plan to add a leisure component to their work trips in the next year
Combining business and leisure travel is becoming a way of life for employees who see business travel as an opportunity to explore the culture, history, and food of new places. Before the pandemic, 40% of business travelers admitted to extending their trips to include some vacation time. Recent studies reveal this number may now be as high as 70%. Having time to slow down and give their minds a chance to rest improves concentration and performance. Travelers who schedule their days with moments to unwind and explore the area where they’re staying can process their work and be more productive during their contracted hours.
Whether they’re sojourning alone or with loved ones, leisure travelers are able to stay in a destination for longer periods of time by combining work and play. This is good news for extended-stay facilities, but it’s also an excellent opportunity for accommodation providers who have facilities that can be converted for these guests.
Wyndham extended-stay solutions
Extended hotels were gaining traction in Europe as an untapped asset class before the pandemic. However, the pandemic created more opportunities for investors to see the potential, as it created opportunities for people to stay in and experience these properties — and their amenities — for themselves.
Designed with the extended-stay traveler in mind, Wyndham Hotels & Resorts introduced midscale, upscale, and upper-scale accommodations in Europe, Middle East, Eurasia, and Africa (EMEA) under the names Ramada Residences by Wyndham, Wyndham Residences and Wyndham Grand Residences. Most recently, the company partnered with the IDILIQ Group to brand 12 leisure and business extended-stay properties in popular European destinations, including Spain, Canary Islands, Turkey, the UK and Austria.
Dimitris Manikis - President for Europe, Middle East, Eurasia, and Africa, Wyndham Hotels & Resorts - commented: “If you can work from home, you can work from everywhere. This is trend that is here to stay and will continue to evolve. As more travelers combine business with leisure, the extended-stay offering provides enormous opportunities for the hospitality industry, today and well into the future. Wyndham has seen some fantastic growth momentum with our latest Wyndham Grand Residences, Wyndham Residences and Ramada Residences by Wyndham openings and our focus is to continue to expand in more destinations across the region.”
Hotel amenities for the extended-stay traveler
Extended-stay, either being hotels or residences, offers business travelers the space they need to keep their work and play time separate. In these Wyndham-branded facilities in EMEA, travelers enjoy larger guest rooms, converted to provide plenty of space to accommodate family members or room to spread out for work. With most properties offering separate areas to sleep, work, and dine, guests can participate in video calls with the camera on without worrying about a distracting background for others to see.
Hotels that can offer guests the space and amenities they need to accomplish their work tasks and support their sense of adventure. Take Wyndham Residences Golf del Sur in the Canary Islands, for example. The hotel features apartments and villas for up to eight guests, including rooms with private pools and hot tubs. Guests can spend their mornings catching up on emails or checking in with clients, and spend the afternoon by the pool catching some sun. Between meetings, they can squeeze in a workout in the fitness center or take a stroll along neighborhood streets. In the evenings, they can soak in the hot tub or review notes for an upcoming presentation.
Business travelers are increasingly bringing their families with them on business trips so they can combine work with vacation time. At Wyndham Residences Kusadasi Golf & Spa in Turkey, the entire family has something to do. Business travelers can bring their children to the Kids’ Club while they meet virtually with clients without distractions. They can look over notes for tomorrow’s meeting while lounging at the side of the pool, and then unwind in the Turkish bath after an afternoon sampling the fare and taking in views of the Aegean Sea.
Even hotels located outside the urban core attract business travelers as long as they have an internet connection. In the UK, Wyndham Trenython Manor features a fully restored manor house and private lodges. The contemporary decor evokes the feeling of being at home away from home. Guests can check email or talk with clients and colleagues from the private patio as the sun rises or sets. They can give their eyes a break from the computer screen as they relax in the sauna or enjoy a massage in the spa.
Looking to the future: Economy hotel opportunity
The economy extended-stay space — a segment that consistently performed well during the pandemic and previous economic slowdowns — has caught the attention of investors in markets around the world. In 2020 — a year that saw demand for hotels drop nearly 50% — demand for extended-stay hotels fell a mere 15.8%. Within this space, hoteliers are finding interesting growth opportunities. The rooms have lower price points, but higher numbers of residential guests can increase ROI.
Recognizing these opportunities for economy extended-stay hotels, Wyndham has recently launched Project ECHO (Economic Hotel Opportunity) in the U.S. The prototype hotel for this brand features single rooms and studio suites with en-suite kitchenettes along with amenities that include a fitness center, guest laundry, and lobby. With 50 hotels in the initial pipeline in the U.S., Wyndham is now eyeing additional growth opportunities. The company is targeting at least 300 hotels over the next ten years in the U.S. with potential for additional growth internationally.
Being part of a global hospitality company comes with benefits
The world is traveling again, and now is the perfect time to partner with an industry leader. Wyndham is the world’s largest hotel franchising company with approximately 9,000 hotels across over 95 countries. Recognizing the growth potential in the extended stay offering, the company is poised to continue expanding in this market segment throughout Europe, the Middle East, Eurasia and Africa. Hoteliers, property developers, and operators benefit from the scale, distribution, and expertise of being part of the world’s largest hotel franchising company to market their properties while also reaching a broader audience. Find out more here https://whrdevelopmentemea.com/