The extended stay hotel target market is a unique segment within the hospitality industry, catering to guests who require accommodations for extended periods—typically one week or more. This market includes business travelers, relocating individuals, and others in need of temporary housing.
Identifying and understanding the diverse needs of this audience is crucial for hotel operators looking to maximize their offerings and appeal to a wider range of long-term guests. By tailoring services, amenities, and pricing to the preferences of the extended stay hotel target market, operators can enhance customer satisfaction and drive sustained revenue growth.
Understanding the Target Market for Extended Stay Hotels
The extended stay hotel target market consists of individuals who need temporary lodging for extended periods, often due to work, personal reasons, or transitions. These hotels provide home-like amenities such as kitchenettes, spacious rooms, and flexible stays, which appeal to those seeking more than just a short-term vacation. By offering a balance between comfort, affordability, and convenience, extended stay hotels cater to a range of guests, including business professionals and people in between permanent residences.
Some of the most common personas in the extended stay hotel target market include:
- Business Travelers
- Relocating Professionals
- Corporate Groups
- Families in Transition
- Contractors and Field Workers
- Medical Patients and Caregivers
- Vacationers on Extended Trips
Let’s take a closer look at the key segments of the extended stay hotel target market.
#1. Business Travelers
Business travelers represent one of the most significant portions of the extended stay hotel target market. These individuals often travel to different cities for work-related purposes, including meetings, conferences, project assignments, and training sessions. Their stays can range from a few days to several months, depending on the scope and duration of their work.
Key Characteristics:
- Frequent Travel: Business travelers often find themselves moving from one city to another, attending multiple engagements, or working on assignments in different locations.
- Need for Reliable Internet: High-speed internet is essential for business travelers to stay connected with colleagues, clients, and their organizations. Many extended stay hotels offer dedicated workspaces, Wi-Fi, and printing services to meet these needs.
- Preference for Comfortable Workspaces: Many business travelers prefer accommodations that offer comfortable office-like spaces within their rooms, including desks, ergonomic chairs, and access to conference or meeting rooms.
- Flexible Terms: Business trips don’t always align with the typical hotel booking schedule. Extended stay hotels cater to this market by offering flexible check-in/check-out options and the ability to extend stays based on project timelines.
- Duration of Stay: Business travelers may stay anywhere from a week to several months, depending on the project or work engagement.
Example: A consultant hired for a six-month project in another city may choose an extended stay hotel to enjoy home-like amenities such as a kitchen, laundry facilities, and comfortable living spaces during their extended stay.
#2. Relocating Professionals
Relocating professionals often find themselves in a transitional period between their old home and a new location. This group typically moves to a new city due to a job opportunity, promotion, or organizational transfer. The need for temporary housing arises because these individuals may not have secured permanent housing or are awaiting relocation logistics, such as finding the right home or completing the moving process.
Key Characteristics:
- Job-Related Moves: Relocating professionals are generally moving for a job, either due to a promotion, a career change, or a company transfer. This shift often requires a temporary place to stay while they transition.
- Need for Convenience: Relocating individuals often need accommodations close to their new place of work or temporary housing. Extended stay hotels, with their proximity to business districts or popular relocation areas, make them ideal for this group.
- Desire for Comfort: Adjusting to a new environment can be stressful, and extended stay hotels provide the comfort of home with the added benefit of amenities like kitchens, living spaces, and flexible leasing options.
- Duration of Stay: Stays typically last from a few weeks to a few months, allowing these professionals to settle in without the burden of rushing into a permanent living arrangement.
Example: A mid-level manager moving to a new city for a role in a tech company might stay in an extended stay hotel while looking for a house in the area.
#3. Corporate Groups
Corporate groups encompass teams or entire departments who require accommodations for business trips, projects, or training sessions. These teams could be traveling for corporate events, meetings, or to work on a collaborative project that requires long-term presence in a particular city or region.
Key Characteristics:
- Team Accommodation: Corporate groups often require bulk booking of rooms for their entire team or department. Extended stay hotels cater to this by offering special corporate rates and group packages that make it easier for companies to book accommodations for their employees.
- Need for Group Amenities: These groups often need additional amenities such as meeting rooms, workspaces, and conference facilities. Extended stay hotels that offer these features are an excellent choice for corporate teams.
- Cost-Effective: Extended stay hotels can provide better value for money when compared to booking multiple standard hotel rooms. Many hotels offer long-term corporate rates or discounted packages for larger groups.
- Extended Duration: Corporate groups may stay for several weeks or months, depending on the project at hand. Extended stay hotels provide the flexibility needed for longer stays with the convenience of self-sufficiency.
Example: A company sending a sales team for a quarter-long product launch may opt for an extended stay hotel to keep all team members in a centralized location with amenities like meeting rooms and full kitchens.
#4. Families in Transition
Families in transition often require temporary accommodations when undergoing major life changes, such as moving to a new city, awaiting home construction, or undergoing a divorce. Extended stay hotels cater to these families by offering more spacious rooms, kitchen facilities, and flexible terms, all of which provide a higher level of comfort during a stressful time.
Key Characteristics:
- Life Transitions: Families may be undergoing significant life changes such as selling a home, waiting for a new house to be completed, or adjusting to a new city. These transitions make it difficult to commit to long-term housing immediately.
- Space and Comfort: Families generally need more space than a traditional hotel room provides. Extended stay hotels offer larger suites with multiple bedrooms, full kitchens, and living areas that make the transition easier and more comfortable.
- Pet-Friendly Options: Many families also need pet-friendly accommodations as they relocate. Extended stay hotels often allow pets, providing the family with peace of mind while transitioning.
- Duration of Stay: Families in transition often stay for longer periods, typically from a few weeks to several months, as they search for permanent housing.
Example: A family selling their home in one city while waiting for their new home to be built in another city may opt for an extended stay hotel to ensure that their children are comfortable during the transition.
#5. Contractors and Field Workers
Contractors and field workers, including construction workers, engineers, and other professionals, often find themselves working on projects that require long-term stays in specific locations. These individuals need accommodations that offer convenience, comfort, and affordability, which is where extended stay hotels come in.
Key Characteristics:
- Temporary Job Sites: Contractors and field workers are often assigned to specific job sites that require them to stay in one place for an extended period. These projects can last for weeks or months, and extended stay hotels provide them with the flexibility to stay as long as needed.
- Practical Amenities: Extended stay hotels provide amenities such as in-room kitchens, on-site laundry facilities, and large workspaces that are highly beneficial to contractors and field workers who are away from home for extended periods.
- Proximity to Work Sites: These workers prefer accommodations close to their job sites to minimize commute time. Many extended stay hotels are located in industrial areas or near large construction projects.
- Duration of Stay: Contractors may stay in extended stay hotels for anywhere from a month to several months, depending on the length of their project.
Example: A team of construction workers on a multi-month project may choose an extended stay hotel near the job site to have easy access to work while enjoying the comforts of home at night.
#6. Medical Patients and Caregivers
Medical patients and their caregivers often need temporary lodging near medical facilities, especially if they are undergoing long-term treatment or recovering from surgery. Extended stay hotels cater to this market by providing accommodations with the necessary amenities to support recovery, comfort, and day-to-day needs during extended stays.
Key Characteristics:
- Proximity to Medical Facilities: These guests typically seek accommodations that are close to hospitals, clinics, or treatment centers. Extended stay hotels in medical districts or near major hospitals are ideal for this group.
- Comfort and Accessibility: Patients and caregivers often require a comfortable environment that feels like home, especially during a challenging medical situation. Hotels with kitchenettes, fitness centers, and wheelchair access are appealing to this group.
- Long-Term Stays: Many patients are in town for ongoing medical treatment, which can last for weeks or months. Extended stay hotels provide the flexibility to extend stays as needed without the hassle of changing hotels.
- Caregiver Needs: Caregivers accompanying patients need accommodations that offer enough space for rest, cooking, and personal care during their stay.
Example: A family staying at an extended stay hotel near a hospital while a loved one undergoes cancer treatment will appreciate the space, comfort, and convenience of having kitchen facilities and laundry services available.
#7. Vacationers on Extended Trips
Vacationers on extended trips are those who travel for leisure, often for a month or longer. This includes individuals on sabbaticals, retirees exploring new regions, or people who want to immerse themselves in a destination over a prolonged period.
Key Characteristics:
- Long-Term Leisure Travel: This group typically stays for extended periods, often longer than the typical vacation. They want to experience a location in-depth, whether it’s through cultural exploration, outdoor activities, or a slower-paced lifestyle.
- Home-Like Amenities: Extended stay hotels are particularly attractive to vacationers because they offer amenities like full kitchens, which allow travelers to save on dining costs and cook their own meals.
- Flexible Stays: Vacationers on extended trips may stay in one location for weeks or months, making the flexibility of extended stay hotels ideal for those who don’t want to be tied to short-term rental contracts or traditional hotel stays.
- Desire for Comfort: These travelers often prefer accommodations that provide a more comfortable and home-like environment than what traditional hotels offer.
Example: A retiree traveling the country in search of new places to explore may choose an extended stay hotel to enjoy the comforts of home while on the road for several months.
Closing Thoughts
Understanding the extended stay hotel target market is key for hoteliers aiming to provide tailored services to specific guest groups. Whether catering to business travelers, relocating professionals, contractors, or vacationers, the ability to meet the needs of these diverse personas is crucial for success in this competitive segment. By offering the right combination of flexibility, comfort, and affordability, extended stay hotels can attract and retain long-term guests, ensuring sustained business growth.
As the demand for extended accommodations continues to rise, hoteliers must adapt their offerings to cater to the evolving needs of their target market. A deep understanding of each segment—along with careful attention to customer preferences—can make all the difference in creating memorable, cost-effective stays for those who need a home away from home.