Would a hotel pass for unlimited stays work in the hospitality industry?

A recent Hospitality Net World Panel viewpoint discussed the feasibility of a pass for unlimited stays would work for hotels. The viewpoint discusses the idea of hotels offering a pass for unlimited stays, similar to the "all you can fly" promotion recently announced by Frontier Airlines. Experts in the hospitality industry were interviewed, and opinions are mixed. Some believe that the idea could work for large hotel chains with multiple locations, but with limitations such as no more than one or two nights stay at any property per quarter. Others believe that the idea is more of a publicity stunt and would ultimately lead to customer dissatisfaction due to the restrictions and availability challenges that would be required to make it work. Some suggest that a subscription model with a fixed number of nights for a monthly fee would offer more potential for innovation in pricing structure.

The article mentions that Frontier Airlines, a budget airline based out of Denver, Colorado, recently announced an "all you can fly" promotion that offers pass holders unlimited domestic flights, including to Puerto Rico. This led to the question of whether any hotel brand - big or small - or independent hotel would follow suit and introduce a hotel pass with unlimited stays.

Eleven experts in the hospitality industry were interviewed, and their opinions are mixed. Some believe that the idea of a hotel pass with unlimited stays could work, but with certain limitations and restrictions. For example, Larry Mogelonsky, Partner at Hotel Mogel Consulting Ltd. suggests that the pass could be limited to no more than one or two nights stay at any property per quarter, and that it would be more of a publicity stunt than a money maker.

Others believe that the idea of an unlimited hotel pass would ultimately lead to customer dissatisfaction. Peter O’Connor, Professor of Strategy at University of South Australia Business School, mentions that the types of restrictions needed to make it work, such as blackout dates, limits on the number of consecutive nights, and availability challenges would make the reality very different from the promise, leading to disappointment and frustration.

Charlie Osmond, Co-Founder & Chief Tease at Triptease, suggests that an unlimited stay hotel pass would require hotels to ramp up revenue from ancillaries and attributes to make it work, similar to how airlines charge additional fees for every tiny thing/service.

Mark Fancourt, Co-Founder at TRAVHOTECH, mentions that some hotels have already applied the "unlimited stay" model during COVID. Anantara launched such an initiative, where "unlimited" being relevant to the amount of money to offset a realistic number of room nights or stays.

Linchi Kwok, Professor at The Collins College of Hospitality Management, Cal Poly Pomona, believes that "all you can stay" may not work well for hotels as the pricing structure of hotels is different from airlines, and people do not need to travel far for a staycation, and people can live in a hotel comfortably rather than in an apartment with "all you can stay."

In addition to the opinions of the experts mentioned in the article, it also mentions that some hotels have already applied the "unlimited stay" model during COVID. For example, Anantara launched such an initiative, where the customer pays a fixed amount of money and in return they get a certain number of room nights or stays. This can be seen as a way for hotels to offer a flexible and attractive pricing structure, without the need for the customer to pay for each individual stay.

However, it is also mentioned that this type of model comes with its own set of challenges and limitations. For example, there may be restrictions on the number of consecutive nights a customer can stay, or blackout dates when the pass is not valid. Additionally, there may be issues with availability, as a limited number of passes may be sold, making it difficult for customers to find available rooms during peak times.

Another factor that may impact the feasibility of an unlimited hotel pass is the difference in pricing structure between hotels and airlines. Hotels generally charge limited or no itemized fees for a stay, while airlines charge additional fees for every tiny thing/service. This means that hotels would need to find other ways to generate revenue, such as increasing prices for ancillaries and attributes, in order to make an unlimited stay pass viable.

It's also mentioned that an unlimited hotel pass could be more of a publicity stunt than a money maker, as it would be a great way to generate buzz and attract new customers, but it may not be profitable in the long run.

In conclusion, while the idea of an unlimited hotel pass has its appeal, it also comes with a number of challenges and limitations that need to be considered and addressed. Hotels would need to find ways to generate revenue, and overcome issues such as restrictions and availability, in order to make the pass viable. Additionally, hotels would need to think about how to offer a flexible and attractive pricing structure, without compromising on the customer experience.

Read the full World Panel Viewpoint

Article generated with OpenAI - ChatGPT