Matthijs Welle: "There's more money in your hotel than you think"

The hospitality industry is a sector that generally does not move very fast. The motto is often: the way things used to be, the way things are still going. Hotel owners are used to thinking in terms of renting out rooms and not square metres. But the world is changing, and so is the way we travel and stay overnight. In this era of increasing competition and uncertainties, room thinking is now outdated. In a world where we are increasingly travelling for shorter periods, it is no longer enough for hotel owners to just rent out rooms.

Hotel owners need to be more creative and start thinking in square metres from now on. One way to do this is by diversifying your revenue. Recent research shows that worldwide, one in five hotels are diversifying their revenues and selling extra bookable spaces. This earns hoteliers on average around €8,000 a month in extra income. In the Netherlands, there is now some movement but hotels still have a lot of catching up to do. So there are plenty of opportunities! Don't just stick to rooms, use extra bookable spaces such as meeting rooms, event and coworking spaces. This is likely to strengthen the hotel's position and generate more revenue.

Another way to increase revenue? Extend the length of stay of guests. In the United States, we see a trend that is gradually making its way to the Netherlands: extended stay. How can a business trip be extended into a leisure trip? A hotel can do this, for instance, by upgrading rooms and facilities and by offering guests more than just a place to sleep. Make sure it is attractive to stay longer, so that that two-day conference is extended by two more nights' stay.

The hotel lobby is also a valuable space. Think carefully about how this space can be used to generate more revenue. Severely outdated hotel lobbies are usually large, empty and equipped with a traditional reception area, where guests wait in line to check in. Is that welcoming? The hotel lobby of the future looks different: use that space for coworking where visitors can rent a desk to work at or buy a good cup of coffee. Many people today work from home but lack social interaction and the ability to concentrate in silence. A hotel lobby is an ideal place to meet these needs and tap into an additional audience.

As far as I am concerned, hotels that think in metres are flexible and can respond to changing guest needs. Hotels that stick to traditional thinking-in-rooms will find it increasingly difficult. So it requires a different mind-set and investment in new facilities and services that will pay off. The only way to start doing this is to start measuring and reporting. Add a line to the monthly results showing revenue per square metre so you can see if you are making progress over time.

Hotel owners who think in metres will be able to strengthen their competitive position. If you don't go along with that.... well, I think you're in for quite a tough time.