Author Archives: NAIDominion

Hotels Look to Home-Sharing as Next Revenue Stream

 

Hotels like to posit themselves as one’s home away from home, but lately this has been given a new twist. With the continued rise of home-sharing services such as Airbnb, hotels have decided to get into the arena by creating their own space in the private high-end home rental market.

“Now they see it’s the same travelers just choosing different accommodations based on the occasion or situation,” Boston University assistant professor of hospitality marketing Makarand Mody told The New York Times, adding that guests who choose a hotel for a business trip may opt for a different flavor of property such as an apartment in a unique neighborhood when it comes to personal vacations.

Moreover, Mody said, hotels are starting to see private home rental as a means of nailing down total customer travel spending. “If I’m a Marriott customer, Marriott wants me to be able to find all my lodging needs on their website, whether it’s a business trip or family reunion,” he said, adding that hotel firms are best served by being willing to provide emergent types of accommodation if that’s what customers seem to want.

Onefinestay, founded in London in 2010 and purchased by AccorHotels six years later, rents upscale accommodations such as private homes and apartments. Additionally, AccorHotels has bought Squarebreak, which provides rentals across a wide spectrum, and Travelkeys, a manager of vacation properties. With professional check-in services, around-the-clock support, and hospitality-grade cleaning and amenities, Onefinestay chief executive Javier Cedillo-Espin told The New York Times, private home rental acts as a complement to hotel services.

Major hotel chains Hyatt Hotels Corporation and Marriott International are also getting into the game, with the former taking a minority investment stake in home rental company Oasis to – as Hyatt head of transactions James Francque told the Times, “serve high-end travelers across more dimensions of their lives”. Meanwhile, Marriott is currently experimenting in London with HostMaker, a home manager. The experiment, which runs six months, groups homes with the Tribute Portfolio Hotels collection, with the homes known as the Tribute Portfolio Homes. They offer personal check0in, high safety and security standards, and industry-grade cleaning and on-call services.

One potential customer for such services is Cornell University professor Cathy Enz, who told the Times that she felt duped by an Airbnb that she booked this summer.

“The description didn’t offer a clue that there might be other people staying in the apartment,” she said. However, there were several other guests that were staying there, unbeknownst to her.

And this may be how the game-changer enters the picture – hotels start to really professionalize the trend that places like Airbnb and VRBO have begun on a more amateur level and bringing home stays up to a more industry-grade level. However, as with all other things, time will tell as to what will happen.

Grab a Bite to Eat and CoWork too? Restaurants Jump in CoWorking

When you think about it, it makes sense to turn restaurants into CoWorking spaces. The CoWorking model emerged after 2008 when the economy was in freefall and unemployment was in the double digits in many places. Coffee shops became the place to network, start a business, do freelance and contract work – anything to make money when there were no jobs.

Multi-ethnic group of people working together on a project in cafeteria.

Those café entrepreneurs soon began launching businesses to great success. Many who left the traditional workforce have not – and likely will not – come back to the traditional office after finding success working independently. However, WeWork recognized that they also needed a place to work that was affordable and better than a coffee shop.

So WeWork began buying up office space and turning it into shared offices where different companies could lease parts of the building. These buildings though were not your standard cookie cutter cubed offices. WeWork began the work/play model that all companies are trying to replicate now.

Offices these days look more like campus hangouts with game rooms, relaxation rooms, TVs, restaurants, on-site cafes, and atypical seating arrangements for offices and desks. Then just a couple of years ago WEach Seats came up with a brilliant idea – use restaurants that are empty during the day as CoWorking spaces from 9 to 5. That idea is sprouting roots and spreading across the country.

Better than Coffee Shops

 Coffee shops are noisy and so are gyms. For much less than a membership at a CoWorking space, businesses are able to pay to use restaurants that only open for dinner all day until dinner time, to use their space for an office. That way the environment can be more controlled for noise levels with the added bonus of ambience with relaxing lighting and access to coffee and water.

Elite Café in New York is also testing the CoWorking restaurant trend. Starting at 8:30 am, the restaurant becomes a CoWorking space where the business owners are given the keys and tasked with opening the restaurant for work. Then the workers help the restaurant transition from day to night – some even help set up the tables for dinner!

Spacious is another New York based CoWorking restaurant that has a couple dozen offices in both New York and San Francisco with memberships as low as $99 per month. Bars and tables are used as desks. Private rooms are being used as conference rooms.

A Win-Win For CoWorkers and Restaurateurs

Of course, for some places, zoning will be an issue. Generally speaking, a restaurant has to be used as a restaurant but in New York, the city says it’s okay as long as the building is used primarily as a restaurant.

What businesses are noticing is how cost effective and low maintenance running a CoWorking restaurant can be. Plus there are added benefits like the possibility of interaction between coworkers as well as other businesses sharing the space.

Like running a restaurant, these spaces ask tenants questions like “how they like coffee, the milk options” and what their noise requirements are. One business decided to try this just because lunch hours were so slow. Now the business is thriving every day as a CoWorking restaurant.

Advertising is cheap. Leases provide an additional stream of income when the building would otherwise be sitting idle. This trend will likely continue to grow based on its current successes.

This is What the Office of the Future Looks Like

In the future, connectivity may be an even more important factor when purchasing office space than location or price, some are predicting. Just like every office first had to be wired for telephone systems, then coaxial cable for the internet, and now wireless, in the future Smart technology will be standard for all office buildings.In the future, connectivity may be an even more important factor when purchasing office space than location or price, some are predicting. Just like every office first had to be wired for telephone systems, then coaxial cable for the internet, and now wireless, in the future Smart technology will be standard for all office buildings.

underside panoramic and perspective view to steel glass high rise building skyscrapers, business concept of successful industrial architecture

Office space itself is already changing dramatically. More often than not, there are multiple companies in one building instead of one company per building. Outside of the building, office space is becoming more like a university campus designed just for office tenants. What will the office of the future look like? Here’s a glimpse:

Walls that Can Talk. By 2050, the office environment will be completely immersed in technology. We expect to be able to talk to walls without the need for a mobile device or app to tap. Projector screens will be unnecessary and video conferencing will be setup through the wall behind giant HD screens – maybe even holograms.

Augmented reality and virtual reality technology is only going to enhance those immersive technologies. Expect the office of 2050 to look more Star Trek like than ever before. Humans will still be necessary but technology will enhance our abilities combining “our horizontal intelligence, with the vertical execution capabilities of artificial intelligence.

Couches Instead of Desks. Already traditional desks and offices are changing. Expect that to only get more fantastical by 2050. Not only will the lines be completely blurred between work and life, or better stated, the office will be a place of social gathering primarily, most employees will only dip into the office from time to time.

Currently more than 40% of the workforce works remotely at least part of the time. That will increase the need for businesses to provide office environments that are more comfortable and inviting in order to encourage workers to come to the office.

Smaller Spaces, Fewer People. Since there will be fewer employees working Monday through Friday, 9 to 5 in the office, the office space itself will continue to shrink drastically. Of course, there will still be a need for regular employees who reside in the office on the traditional office schedule but even their work will be less restricted and more flexible.

Offices Will be Customizable. No more “cookie-cutter” offices in 2050. All office buildings – walls, floors, cabinets, equipment – will be customizable. Rooms will be convertible to serve multiple purposes at different times. Imagine tapping a switch and a partition divides the room, turning it into a brainstorming session that won’t disrupt the rest of the office.

Everything Will be So Very Green. Thirty years from now, we expect that climate change and energy conservation will no longer be debatable. Businesses will recognize the financial savings and work efficiencies embodied in green technology (as many are now) and employees will demand it.

Considering that the workforce in 2050 will largely be made up of Gen Y and Gen Z who are already green oriented, every office building will be a green building. That includes mandates requiring builders to use all sustainable materials perhaps and regulations requiring buildings to meet much more specific green standards.