why are extended stay hotels so cheap


When it comes to hotel accommodation, the cost is often a significant consideration. Travelers are always on the lookout for affordable yet comfortable places to stay. Extended stay hotels have gained popularity for their relatively low prices. So, why are extended stay hotels so cheap? Let’s delve into this intriguing topic and uncover the reasons behind their affordability.

1. Fewer Amenities

Extended stay hotels are designed for longer stays, and as a result, they typically offer fewer amenities compared to traditional hotels. While you may not find luxuries such as spas or extravagant dining options, extended stay hotels usually provide the essentials like fully equipped kitchens, laundry facilities, and workspaces, catering to the needs of long-term guests. By cutting down on additional amenities, these hotels are able to keep their costs low and pass on the savings to their guests.

1.1. Limited Services

Unlike full-service hotels, extended stay properties often have limited front desk and concierge services. This means they can operate with a smaller staff, reducing labor costs and ultimately leading to lower room rates for guests.

2. Economies of Scale

Extended stay hotels benefit from economies of scale. By accommodating guests for longer durations, these establishments can streamline their operations and reduce overhead expenses. This efficiency allows them to offer competitive rates without compromising on the quality of service.

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2.1. Lower Maintenance Costs

Extended stay hotels are built to withstand the wear and tear of long-term guests. With less frequent turnover, these establishments experience lower maintenance costs, resulting in more affordable room rates.

3. Flexibility in Booking

Extended stay hotels offer flexible booking options, allowing guests to choose the length of their stay. This flexibility enables these hotels to optimize their room occupancy and generate steady revenue. As a result, they can afford to offer lower nightly rates to attract long-term guests.

3.1. Lower Marketing Costs

Extended stay hotels often rely on word-of-mouth and repeat business, reducing the need for extensive marketing efforts. This helps them cut down on marketing costs and allocate their resources to providing affordable accommodations.

4. Location and Market Segment

The location and market segment of extended stay hotels play a significant role in their pricing strategy. These hotels are often situated in suburban or business district locations, where real estate and operational costs are lower. Additionally, extended stay hotels target a specific market segment of long-term travelers, allowing them to tailor their services and pricing to meet the needs of this demographic.

4.1. Long-Term Partnerships

Extended stay hotels often establish partnerships with local businesses and organizations, offering discounted rates for their employees or members. These long-term partnerships contribute to a consistent flow of guests, enabling the hotels to keep their prices competitive.

5. Conclusion

Extended stay hotels are able to maintain affordable rates by focusing on the essentials, leveraging economies of scale, offering flexible booking options, and strategically locating themselves in cost-effective areas. Their ability to cater to the needs of long-term guests while keeping costs low makes them a popular choice for budget-conscious travelers seeking extended stays.

Frequently Asked Questions

1. Are extended stay hotels suitable for short-term stays?

While extended stay hotels are designed for longer stays, they often welcome guests for short-term stays as well. The flexibility in booking options makes them suitable for various accommodation needs.

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2. Do extended stay hotels compromise on cleanliness or comfort due to their affordability?

Extended stay hotels prioritize cleanliness and comfort to provide a pleasant living experience for their guests. Despite their affordability, they maintain high standards to ensure guest satisfaction.

3. Are extended stay hotels only for business travelers?

Extended stay hotels cater to a diverse range of guests, including business travelers, vacationers, and individuals relocating to a new area. Their versatility makes them an appealing choice for different types of travelers.

4. Can guests expect the same level of service at extended stay hotels compared to traditional hotels?

While extended stay hotels may offer fewer amenities, they strive to provide exceptional service to meet the needs of long-term guests. The focus on personalized care and attention sets them apart from traditional hotels.

5. How can guests make the most of their extended stay hotel experience?

Guests can maximize their extended stay hotel experience by taking advantage of the fully equipped kitchens, laundry facilities, and workspaces. Additionally, building a rapport with the staff can enhance the overall stay.