Remote Work Now Touches Every Corner of the Lodging Sector

25.08.2023 - 13:54 / skift.com / Varsha Arora / Matthew Parsons / Merilee Karr

Remote work is embedded in the overall lodging sector, going by many speaker insights and observations shared on stage during Skift’s Future of Lodging Forum on Wednesday.

The one-day event, held in London, looked to the future — themes of wellness and experiences resonated in particular. But what was interesting to hear is just how much, across a broad range of sub-sectors, from budget to luxury, the remote worker has made an impact.

Here’s a brief overview of how some of the day’s speakers viewed the landscape.

The Skift Research Take
Kickstarting the forum with her “Experience Economy 2.0” presentation, Skift’s senior research analyst Varsha Arora discussed remote work trends from the outset.

“Work from home might just permanently increase, and the travel behavior around it will keep evolving,” she said. “This reshuffling calls for a reboot of version 1.0 (of the experience economy) to version 2.0.”

Hybrid hospitality —championed by the likes of CitizienM, Zoku, Selina and many others — represents an opportunity for hotels today. Arora noted it is simply about brands using their space throughout the day, and at different times of the day. For example, by “stacking” a co-working model onto hotel real estate, hoteliers can open a window of 24-hour revenue generation. Overall, hotels can grow revenue by 20 percent by offering spaces to work in.

Starwood Capital Group
Despite the very small rooms, it turns out Yotel is a draw for remote workers, according to one of its investors.

“Throughout Covid, we learned one of our brands, Yotel, has actually found a niche in catering to digital nomads and remote workers,” said Joe Pettigrew, chief commercial officer, hotel asset management, Starwood Capital Group, which part-owns the brand. “Go to any of the Yotels, and we didn’t really envision this, you go into the lobby at three in the afternoon on a Tuesday, it’s full of people working, and staying five, six, seven nights — which we didn’t envision because those rooms are very small.”

UndertheDoormat Group

Merilee Karr, founder and CEO, UndertheDoormat Group, noted that consumer preference for short-term rentals had increased the most of all accommodation types, by 11 percent, according to STR data, compared to before the pandemic.

“People tested short-term rentals and vacation rentals during the pandemic, and recognize it’s fantastic not just for when they’re going on a family vacation but also when they’re traveling for business. When you see more combinations when people can remote work, when business travel and leisure travel states to merge into one, then that type of accommodation provides that flexibility people are looking for,” she said. “That’s a trend that’s here to stay.”

Mr & Mrs Smith
Tamara