Long stays have turned into one of the most significant patterns in hospitality during the last 2 years.
NB: This is a post from Mews
In their Report on Travel && Living, Airbnb discusses the share of long stays (reservations longer than 28 nights) increased from 14% in 2019 to 24% in 2021. Companies like Sonder constructed their entire post-covid company technique around extended stays. The Student Hotel has closed an enormous EUR300M funding round to expand its principle, blurring lines in between hotel and trainee lodging around Europe.
Subscribe to our weekly newsletter and stay up to date
The value and the strength of long stay business
Checking out about these trends and business strategies, one might be wondering: “Is it really an excellent idea to start providing long-lasting accommodation?” To this, we say yes! Its an excellent idea. Weve even got the data to back it up.
Cancellation rate data
What does the chart tell us? Guests booking stays longer than 27 days are much less most likely to let Covid measures alter their choice to take a trip. These people are extremely often moving for company or research studies and when they book their stay, its likely that they will really get here. For short-term stays, the cancellation rate in these countries is currently 3 times greater. Put plainly, people will cancel their weekend trip to Amsterdam since of Covid steps, but they wont cancel their task or university studies.
Now that we comprehend the resilience of the long stay company, we must look at the monetary metrics. The average everyday rate (ADR). Once again, were looking at data from Austria, the Netherlands, and Germany and comparing stays of 1-7 days with stays longer than 27 days..
We looked at the strength of long stay organization and compared cancellation rates for stays of 1-7 days with those longer than 27 days in countries just recently affected by strict covid steps. Specifically, this data covers Austria, the Netherlands, and Germany in 2021 between July 1 and the end of the year. Procedures such as closed non-essential shops, bars and restaurants were introduced in the 2nd half of November 2021 in these nations.
The cancellation rate revealed below is computed as bookings cancelled/reservations developed in each week. The first graph reveals long remain reservations, the second shows brief stays.
We looked at the durability of long stay service and compared cancellation rates for stays of 1-7 days with those longer than 27 days in nations just recently impacted by rigorous covid steps. Now that we understand the strength of the long stay service, we must look at the monetary metrics. The distinction is clear: the ADR for brief stays (around EUR100) is around double the ADR of long stays (EUR40-50). If we consider occupancy and operations expenses, long remain service is more efficient. The typical length of long stays in our data is around 100 days.
Financial information
There are other metrics suggesting that long stay business can be very helpful. If we consider occupancy and operations expenses, long remain business is more efficient. The average length of long stays in our information is around 100 days.
The distinction is clear: the ADR for short stays (around EUR100) is roughly double the ADR of long stays (EUR40-50). Yes, that looks a lot much better in the Manager Report. In the next metric, nevertheless, the long stays win. Heres the typical worth of appointment (additional products and services are ruled out).
The typical value of reservation for long stays is 15 to 20 times higher. If you manage to attract guests for this kind of stay, they are golden eggs, generating approximately EUR4000.
Read remainder of the post at Mews.
Operations information and more.
