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As rooms are getting smaller, guest’s wallets are getting bigger, with the option to pay as little as £19 a night to stay in a compact hotel room. According to Commercial Property Consultants, Lambert Smith Hampton, compact rooms accounted for 18% of new hotel rooms opened last year. Overall there has been a 95% increase in the number of compact rooms delivered annually across the industry since 2016, and it's a figure set to rise.
So, what is a compact hotel room? Consisting of a bed, bathroom and TV, guests are giving up windows, desks, tea making facilities and some extra floor space to save some pennies. For an ultra cheap room, guests are also opting for locations just outside of city centres. And it would seem it's worth it, particularly for business people travelling from one hotel to the next with no time for relaxation, as well as guests on city breaks who purely want a place so rest their head after a long day of sightseeing.
From compact rooms to eco hotels, the hotel industry is certainly going through a period of exciting change, particularly for millennials, allowing them to save money in or near high-end locations. 'Zip hotels by Premier Inn' appear to be the first chain to make this lucrative move, where guests might have previously opted for a cheaper Air Bnb stay compared to staying in one of their regular rooms.
So, what's the impact on the rest of the industry? Bnb's will likely suffer the most as well as other chain hotels where they have previously been the more affordable option, particularly in city centres. The majority of their customers will now opt to stay in compact rooms as they can pay half the price for the same service and trusted brand. Boutique hotels may not be affected in the same way, in fact compact hotel rooms give them an opportunity to set themselves further apart which is great for guests with a bigger budget who are purely seeking luxury.
There is no doubt that many chain hotels will jump on the concept in the coming years. Perhaps other types of hotels will be forced to focus more on their offering and what makes them different, including the guest experience which is much harder for budget hotels to personalise. For help in measuring and improving your guest experience, please contact our team today on 01225 477099 or email enquiries@hgem.com.
