Day-use hotel rentals on the rise: A growing trend in the hospitality industry

More hotels are renting rooms by the hour, thanks to apps like DayUse and Byhours. This trend is driven by a shift in lifestyle and changing perceptions of daytime hotel stays. Travelers like Rae Kappler, who missed a flight and rented a room at a Holiday Inn, are opting for day-use hotels to freshen up and relax. Experts say this trend is gaining momentum, with roadside motels and premium hotels offering daytime rentals.

In recent years, there has been a notable shift in the hospitality industry, with an increasing number of hotels offering hourly room bookings. This trend is primarily driven by a change in lifestyle and a shift in consumer perceptions, facilitated by apps like DayUse and Byhours. The growing demand for hourly room bookings is evident in various scenarios, from weary travelers needing a break to those seeking a romantic escape.

One such example is Rae Kappler, who found herself stranded at Toronto Pearson International Airport due to a missed flight. Kappler opted to rent a hotel room for a few hours to freshen up and relax, an experience that highlighted the convenience and necessity of daytime hotel stays. This trend is not limited to airport layovers; it extends to business travelers, leisure seekers, and even couples looking for privacy [1].

The shift in lifestyle and changing perceptions of daytime hotel stays are key drivers behind this trend. Traditional roadside motels have long offered hourly rentals, but the stigma associated with such stays has largely dissipated. According to Wayne Smith, director of the Institute for Hospitality and Tourism Research at Toronto Metropolitan University, daytime stays are now seen as a practical solution for various needs, such as job interviews, rest during long layovers, and even romantic getaways [1].

The partnership between Hilton and Small Luxury Hotels of the World (SLH) has also contributed to the expansion of luxury travel options. In just one year, Hilton's exclusive partnership with SLH has added more than 450 new hotels across 12 new countries, dramatically expanding Hilton’s luxury offerings and creating new ways for Hilton Honors members to dream and redeem their Points around the world [2].

The financial implications of this trend are significant. For instance, hotels participating in the DayUse platform see a notable increase in bookings and revenue. According to Yves Pouliotte, North American director for DayUse, 40% of their users are travelers in transit, while another 40% are leisure seekers. The remaining 20% are there for business purposes. Although the cost for a daytime booking is often lower than for an overnight stay, travelers tend to spend more on additional services like food or spa treatments [1].

The trend of hourly hotel bookings is expected to continue growing, with more hotels adopting this model to cater to the evolving needs of their customers. As lifestyles change and travel patterns shift, the hospitality industry is adapting to meet these new demands, offering a more flexible and convenient accommodation option.

References:

[1] https://www.cbc.ca/radio/costofliving/daytime-hourly-use-hotels-1.7596455
[2] https://stories.hilton.com/releases/hilton-and-small-luxury-hotels-of-the-world-celebrate-one-year-anniversary-of-exclusive-partnership