Embracing Hybrid Hospitality: A Blueprint for Boosting Hotel Revenue

In the ever-evolving landscape of the hospitality industry, it can feel hard to stay ahead of the curve – or even in the middle of it. However, changing habits, attitudes, and trends send a clear message: the status quo is no longer sufficient to meet the complex needs of modern guests. The solution? Embrace a flexible tech stack and adopt innovative revenue models. Enter hybrid hospitality – a game-changing concept that’s redefining spaces, mindsets, and guest experiences.

What is Hybrid Hospitality?

Hybrid hospitality is more than just a buzzword. It’s a paradigm shift in how hotels operate. It’s about transforming lobbies into dynamic co-working spaces, turning amenities into revenue-generating opportunities, and building communities that extend beyond hotel walls.

5 Hybrid Hospitality Strategies

Now that you know what hybrid hospitality is, let’s delve into five key strategies hoteliers use to adapt and thrive in this new era.

1. Focus on Upselling Extras

Move over RevPAR, it’s time to embrace RevPAM. Revenue per available square meter is gaining traction as hotels expand their revenue diversity beyond room bookings. By offering additional bookable services such as parking spots, day-use rooms, event spaces, and health and fitness options, hotels can tap into new income streams.

Plenty of properties are already doing this and seeing the rewards. To illustrate how big a difference it can make to your revenue, one city center property integrated their parking into Mews Hospitality Cloud and generated over €100k in only a year. The ease of tracking and the low maintenance costs showcase how a strategic approach to amenities and extras can significantly impact the bottom line.

2. Monetize Lobby Space

Lobbies are no longer just transitional areas – they are becoming vibrant hubs of activity. The demand for co-working spaces has prompted hotels to reimagine their lobbies, turning them into versatile, multi-purpose areas. Beyond providing a welcoming space for guests, these revamped lobbies become lucrative revenue streams during off-peak seasons.

Unlike traditional co-working spaces, hotel lobbies offer the advantage of being accessible 24/7 with on-site staff, meeting rooms, and dining options. The best hotels are creating co-working spaces that facilitate deep focus and collaboration, catering to the needs of the modern workforce.

3. Embrace F&B Offerings

Food and beverage offerings are integral to many a hotel’s revenue stream, but hybrid hospitality takes it a step further. Beyond the standard restaurant or bar, hotels can explore upselling dining packages before arrival, introducing guest chefs, and fostering local partnerships. Even without an on-site restaurant, modern vending machine choices and in-house convenience stores can contribute to F&B revenue.

Take a cue from The Hoxton, which features a Hox Shop in the lobby, offering snacks, drinks, and limited-edition items at supermarket prices. Such creative approaches not only enhance the guest experience but also boost revenue in unexpected ways.

4. Build a Community

Modern travelers seek more than just a place to stay. They crave experiences and a sense of community. Hybrid hospitality encourages hotels to build connections between guests and locals. Offering introductory deals, partnering with local businesses, and creating subscription models can help foster a sense of belonging.

The Social Hub, a revolutionary brand, exemplifies this approach. Their hybrid hospitality model transcends demographics, providing vibrant social spaces and events that create a dynamic atmosphere for networking and forming connections. Oh, and by encouraging more locals into your hotel, you’ll also increase and diversify your revenue.

5. Provide Unforgettable Experiences

Memorable experiences are the hallmark of successful hotels in the era of hybrid hospitality. Whether it’s sustainability-focused tours, neighborhood walking tours, or daily events and activities, creating unique and impactful experiences sets hotels apart.

The important thing is to lean into what makes sense for your brand. If you’re an eco-conscious hotel, provide trips to a local farm or supplier where you source your food. If you’re a sleek, design-led hotel, team up with galleries to provide art for your property or exclusive events. These experiences not only contribute to guest satisfaction but also act as powerful marketing tools through word of mouth.

The era of hybrid hospitality is upon us, and it’s time for hotels to embrace the change. Diversifying revenue streams through innovative approaches to spaces and services is not just a trend – it’s a strategic imperative for future-proofing your business. As you embark on this transformative journey, remember that the key lies in adapting these strategies to your brand and guest demographics. The possibilities are vast, and the potential for revenue growth is immense. So, why wait? Dive into the world of hybrid hospitality and unlock the full potential of your hotel.

Free Guide: Learn How to Diversify Your Hotel Revenue