How to meet the evolving needs of business travelers
The rise of remote and project-based work has led to a growing number of professionals seeking flexible accommodation options for longer periods of time - but they aren't the only ones. Extended-stay reservations, meaning guests seeking lodging for longer term stays, make up 70 million annual travelers in the U.S. and includes but is not limited to: medical staff, emergency workers, project-based workers, construction and infrastructure staffing, employees that are relocating. and individuals with temporary housing needs. This booming segment of diverse travelers presents unique requests to the hospitality industry, and Hilton is listening.
Extended-stay demand and demand for value accommodation is growing year-over-year and by 2024, is forecasted to reach a historic high of 1 billion hotel room nights. This is surpassing the long-term average with more than one quarter of those travelers likely to stay five or more nights. Over the past three decades, the extended-stay hotel room supply has increased by 190.3% and hospitality companies. globally, are developing solution-driven insights on what's driving these travelers to stay.
One factor behind value-stay segment growth is a general shift to a remote-friendly work market. With companies now boasting "remote-first" as a compelling job perk, business travelers can now book extended accommodations and set up their workspaces anywhere in the world.
A contributing factor to extended-stay demand is the expansion of the workforce staffing segment. In the past four years, construction industry extended-stay lodging grew 120% and medical staffing is expected to grow at a compound annual growth rate of 6.69% from now until 2030. Manufacturing and transportation are also on the rise with an influx of insurance housing needs for displaced persons due an increase in weather and climate disasters.
Project-based travel is seeing an uptick as well, and with it comes the opportunity for hospitality leaders to consider a new take on continuity and reliability. Meeting this demographic where they are, wherever they are, will look like intentional space-making combined with prioritization of amenities unique to the everyday traveler.
The Hilton approach
Meet two of the newest brands by Hilton, made perfect for business travelers. LivSmart Studios by Hilton, serving extended-stay travelers and Spark by Hilton. serving budget-conscious travelers are two thoughtfully unique brands.
Built to accommodate guest stays of 20 nights or more, LivSmart Studios by Hilton offers a lower midscale, extended-stay solution for the traveler who never stops going. Combining purposeful design, spacious studio apartment- style accommodations, and implementing nontraditional lobby experiences, this new addition to the Hilton family of brands also participates in Hilton Honors. LivSmart by Hilton takes loyalty another step further by offering enhanced Points earnings the longer a guest stays.
Delivering exceptional essentials at a budget-friendly price, for leisure and business travelers is Spark by Hilton. While not extended-stay, every Spark by Hilton is making waves with the intention to deliver "routinely exceptional comfort" through consistent amenities like common spaces and helpful service.
Hilton is laser-focused on building out streamlined capabilities that meet and exceed the needs of these multi-faceted travel segments. For example, emerging new payment capabilities that will allow customers to book any Hilton product and invoice in a streamlined way are on the horizon. Hilton understands that the number of touchpoints from booking to check-in is invariable. meaning a seamless payment and check-in process is much needed for project workers and displaced people alike.