Hybrid hospitality is the most significant recent leap in the hospitality industry. As the lines between professional and personal lives become increasingly blurred, there is a greater desire for flexible spaces that fuse together both spheres. The seismic shifts in lifestyle and the nature of the workplace we witnessed during the pandemic are now intrinsically encased in how we go about our lives.
People no longer look for just a place to stay; instead, they seek multi-purpose spaces that can meet the demands of their evolving lifestyles. Some of the recent trends we have witnessed include the popularity of multifunctional spaces, which foster meaningful connections and enhance the overall guest experience. In that vein, we have witnessed more and more co-living spaces transitioning into hotels. This is likely due to the expanding demand for hotel rooms as well as the growing popularity of co-living.
Co-living has emerged as a prime disruptor in the hospitality industry, attracting urban professionals who look for an alternative to traditional hotel accommodations. Generally, PGs and hostels offered an engaging community experience but lacked high-quality spaces. On the other end, hotels provided excellent hospitality, often without community or connection. This is leading hotel chains to adapt their businesses and reimagine their offerings to compete with co-living spaces. At a fundamental level, single-use hotels could be adapted further to incorporate co-working spaces, wellness spaces, general entertainment spaces, new F&B concepts, and delivery-only kitchens.
How co-living is transforming the hospitality industry
Foster social collaboration: Co-living offers a strong sense of social connection. Residents typically share common areas and amenities such as co-working spaces, community kitchens, gyms, and more. This can be a great opportunity to make new friends and connections.
More profitable business: The most common challenge for many hotels is seasonality. Hotels, particularly those located in seasonal destinations, experience high demand during peak season and sell out quickly. During the off-season, hotels generally struggle to attract guests and maintain profitability. Co-living can help hotels address this challenge by attracting guests who are looking for longer stays. In addition, co-living can help attract a new type of traveler and help create a more sustainable and eco-friendly hotel.
Meet the demands of modern consumers: The need for longer stays is due to several pandemic-induced trends. Remote working has taken hold at the moment, with many people realizing that they can now work from anywhere. Notably, some tech-based companies are giving employees the opportunity and assistance to work abroad for a long period of time. The line between leisure, work, and travel has blurred as many travelers and wanderers are now extending their stays by working during their visits.
Flexible accommodation: Unlike hotels, which generally require a minimum stay of one or two nights, co-living spaces can host guests for weeks or months at a time. This makes co-living a more flexible and attractive option for remote workers, digital nomads, and long-term travelers. To add to the benefits, most of the co-living spaces are situated in residential neighborhoods, providing guests with an immersive local experience. Overall, co-living has the potential to disrupt the hospitality industry by offering more affordable, social, and flexible experiences. As the demand for unique and cost-effective travel experiences continues to grow, co-living is poised to become a major player in the hospitality industry.
A cost-effective alternative for travelers and professionals: Co-living spaces provide cost-effective options as compared to traditional hotels, especially for long-duration stays. Hybrid hospitality is becoming the norm, and for good reasons: it’s enabling the hospitality sector to expand its offerings and bring underutilized spaces to life.
The duo brings in better amenities: For several years, ‘hotel amenities’ were limited to a few things, such as a gym, bathrobes, single-use toiletries, and overpriced laundry services. At the present, however, the hospitality world has a lot more to offer. The forward-thinking brands are offering extra comfort to their customers. Amenities can also mean providing tech-driven services like keyless entry, digital check-in, and the ability to make restaurant or spa reservations using a smartphone to create a more seamless consumer experience.
The future of hybrid hospitality has enormous potential to grow and flourish. It is a great way to combine the best of both worlds and offer guests a unique and eclectic experience. There are several types of hybrid hospitality businesses, and each one has its own set of opportunities, all inclusive of one monthly bill. The innovations that we are witnessing will cement the hybrid model as the new norm in the hospitality industry.
(The author is Co-Founder and CEO, Olive by Embassy)
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