Technology puts customized living solutions for extended-stay business travelers in a class by itself.
Itâs hard to overstate the evolutionary forces at work in the traditional hotel space. As it has in other industries, disruption is rattling legacy business models in the hospitality sector.
Todayâs threat comes from the shared-living space revolution, ushered in 12 years ago by Airbnb. What started as a âsubstitute goodâ for traditional hotels has morphed into a seemingly endless array of options. As lines between traditional hotel typologies and emerging shared-living companies blur, hospitality maps are already changing.
The evolution of shared living space designed to accommodate business travel is the next frontier of the short-term rental (STR). Driven by branded real estate, this new enterprise application targets the needs of business by delivering an attractive alternative to the traditional hotel.
Today, Mindmetre Research says 67 percent of businesses globally are choosing flexible workspace as a long-term strategy. Between relocations and project-based travel, business travel stays are stretching. In that context, the traditional hotel experience begins to take on a constrictive, one-size-fits-all feel.
Short-term rentals offer more space, integrated kitchens and the flexibility to tailor an environment to meet both personal and professional needs. Amenities are just part of the package. For business travelers who demand productive work environments and network connectivity while on the road, extended-stay accommodations are designing to meet the needs of the new mobile employee.
AN EVOLUTION DRIVEN BY TECHNOLOGY
While the corporate apartment concept has been around for decades, innovations in IoT and platform technology have brought it into a new era. âIt is a critical junctureâ, says Luke Bujarski, founder and managing director of Luft Research & Advisory.
âTechnology will separate the winners and losers as this industry consolidates,â he predicts. âTechnology is the enabler of smart property management and customer acquisition and retention.â
That is precisely what industry newcomer Dwelloptimal is banking on. Differentiating itself in an increasingly crowded landscape of branded accommodations, Dwelloptimal has been created to optimize live/work environments for corporate applications. Identifying as a real estate technology firm, Dwell uses responsive technology to zero in on client needs. The Dwell platform aims to simplify the business travel process, from booking to expense management, for both the HR team and the employee.
ASSET-LIGHT APPROACH
Working closely with client HR departments, DWELLoptimal uses travel spend analysis tools to build out demand for corporates. Similar to âjust-in-timeâ inventory management, the approach sidesteps the pitfalls experienced by real estate start-ups with fast-growth strategies.
Dwell brings a uniquely nimble approach to the category. âA lot of incumbents in the space operate on the legacy arbitrage model of entering into long-term leases and offering it out hotel style,â says Craig James, Dwell CEO and founder. âAs a business-to-business entity, we aim to be truly asset-light, which means we only stand up units as we source demand. From our perspective, premature scaling is an irresponsible use of capital. And particularly in light of post-Corona realities, that kind of operating model is of no interest to us. Itâs not responsible growth.â
The asset lite approach is also formula designed to meet corporate priorities, says James. âWe think we can do a better job of appealing to the needs of business. We start at the enterprise level by actually asking companies what they want. We can then build out tighter HR integration to complement our real-estate offering.â
POWERING PRODUCTIVITY
Creation of optimized living solutions, James notes, canât happen without effective technology.
âAt our core, we want to power the productivity of the employee,â James says. âAnd that starts with utilizing tech to eliminate travel friction in all the obvious ways. With instant Wi-Fi connections, Zoom conferencing and Slack integration, weâre utilizing technology to actually give time back to the mobile employee.â
Ease-of-use is an important part of the equation, which is guided by an elegant application interface. âIn business travel, mobile professionals prioritize the overall tenant experience, which includes fitness, nutrition and wellness,â James says.
That kind of customized experience is designed to keep increasingly mobile employees functioning at a high level â and keep them onboard. âWe see secure real estate as
an offensive strategy designed to attract and retain employees,â James says.
âWhy wouldnât you give your employees access to the most productive and secure environments you can?â
Written by Leslie McManus, a freelance writer specializing in industry and business-related topics.
