Extended Stays are the Future of Travel | 5 Reasons Why
By 2025, an estimated 70% of the US workforce will work remotely. The travel industry is rapidly evolving, and extended-stay travel is at the forefront of this transformation. This article dives into 5 key trends demonstrating why this decade will be dominated by longer-term stays, altering the face of tourism as we know it.
1. Governments Want Extended Stay Travelers
Countries around the world are trying to attract extended stay travelers through nomad visa programs, attractive tax laws, and social security regimes targeted at remote workers.
For example, the Work From Bermuda Certificate specifically targets self-employed digital nomads, university students engaged in remote learning, and remote workers on its official website.
Extended stay travelers who take advantage of this 12-month program do not have to pay income tax in Bermuda, receive help finding healthcare in the country, and can apply for renewal. During the pandemic, the Government of Bermuda specifically appealed to the pain points of many remote workers:
“No need to be trapped in your apartment in a densely populated city with the accompanying restrictions and high risk of infection; come spend the year with us working or coding on the water.”
Bermuda is just one of dozens of countries aggressively trying to attract extended stay travelers, examples of other offers include:
Albania’s Unique Residence Permit allows remote workers to stay and work in the country for up to 1 year.
Bali’s Second Home Visa targets investors, travelers, and elderly, retired tourists by requiring proof of funds ($140,000).
Belize’s Work Where You Vacation Program allows remote workers a 180 day renewable permit which is extended to families with children who can attend local schools.
Costa Rica’s digital nomad visa permit offers a 12-month stay with the option to renew for an additional 12-months.
The fact that such countries continue to entice remote workers to their shores post-pandemic shows that extended stay travel is quickly becoming an established global trend.
2. Destinations Are Changing
In 2022, Airbnb sought identify and partner with the most remote worker friendly destinations in the world with its Live and Work Anywhere initiative:
Baja California Sur, Mexico
Bali, Indonesia
Brindisi, Puglia, Italy
Buenos Aires, Argentina
Caribbean
Canary Islands, Spain
Cape Town, South Africa
Colombia
Dubai, United Arab Emirates
Friuli-Venezia Giulia, Italy
Lisbon, Portugal
Malta
Mexico City, Mexico
Palm Springs, California, USA
Queensland, Australia
Rural France
Salzkammergut, Austria
Tampa Bay, Florida, USA
Thailand
Tulsa, Oklahoma, USA
While some destinations on this list are unsurprising, others, like Tulsa, Oklahoma, are not the first that come to mind when we think of extended stay travel. Paris, Rome, and Tokyo will remain popular destinations for the traditional tourist, but extended stay travelers have unique priorities that draw them to lesser traveled destinations—affordability, wifi, community, experience, healthcare, language, safety, etc.
It’s also important to note that extended stay travelers don’t just stay in one location year round. 71% of extended stay travelers stay in 1-2 countries per year, 19% travel between 3-4 countries, and 8% manage to visit more than 5. Here are some other important points to consider:
Bangkok, Thailand has established itself as the global hotspot for remote workers
Singapore was the fastest growing remote work hub in 2022
Germany grants the longest digital nomad visa validity (3 years)
27% of Airbnb searchers in April 2021 were flexible on location
Finally, Nomadlist—a website that ranks destinations for digital nomads—ranks the best countries for digital nomads based factors like cost, internet, fun and safety:
Mauritius
Hong Kong
Lebanon
Slovenia
Nepal
Serbia
Cuba
Czechia
Taiwan
Bulgaria
Cambodia
Norther Macedonia
Singapore
Kosovo
Latvia
And for cities:
Bangkok, Thailand
Lisbon, Portugal
Canggu, Bali
Zagreb, Croatia,
Bengaluru, India
Berlin, Germany
Gran Canaria, Canary Islands, Spain
Chiang Mai, Thailand
Madeira, Portugal
Buenos Aires, Argentina
Ko Pha Ngan, Thailand
Timișoara, Romania
Krakow, Poland
Kathmandu, Nepal
Mexico City, Mexico
These trends show that the opportunities to capitalize on extended stay travel won’t just be afforded to traditionally popular travel destinations. Properties in cities small and large can attract this demographic if they provide the right amenities.
3. Favorable Demographics
Check out our Profile of a Slow Traveler for a deep dive into extended stay traveler demographic trends. From what we’ve gathered, the evidence is clear—remote workers are young, educated Millennials with white-collar, high-income jobs:
47% (over 28 million) of slow travelers are from the US, followed by the UK (7%), Russia (5%), Canada (4%), Germany (4%), and France (3%)
61% are in their 30s, 34 year olds lead the way at 8%, followed by 31 and 36 year olds (7% each)
60% are men, 39% women, and 1% reported other
90% have a bachelor's degree or higher
36% make between 100K - 250K a year, 34% between 50K - 100K, 15% between 25K - 50K, and between 250K - 1M, and 2% make over 1M
42% are employed full time, 17% freelance, 16% are startup founders, 8% are full-time contractors, 7% work for an agency, and 3% work part time
34% of men work as a software developer, 28% as a web developer, and 27% are startup founders
16% of women work in marketing, 15% in a creative occupation, and 12% as a startup founder
61% work from a home office, 15% in coworking spaces, 8% from cafes, and 5% in an office
Demographics are in favor of extended stay travel. Millennials will inevitably grow older. Some will settle down, some will continue to be extended stay travelers. However, Gen Z’s purchasing power is set to rise more than 70% over the next 5 years. This is good news for hoteliers and property managers catering to extended stay travelers as Gen Z is more accustomed to the idea of working remotely and 52% are already frequent travelers.
4. Lucrative for Operators
From an operating standpoint, hotel chains offering extended stay are more efficient than traditional models. Rooms designed for long term guests require less attention from the front desk and housekeeping staff, have more predictable energy costs, and higher occupancy rates. Take this an example from our article, “Operational Efficiency: How Extended Stays Reduce Costs and Streamline Operations”
“Let's flesh this out with a simple example. Imagine a mid-scale extended-stay hotel with 100 rooms. Say the cost for housekeeping per room per day is $30—a total of $3,000 in housekeeping costs per day. Suppose we reduce housekeeping to once a week for extended-stay guests. In that case, the cost decreases to $420 per day (assuming an even distribution of housekeeping throughout the week), resulting in significant savings.”
Furthermore, data show that hotels offering extended stay options are generating billions of dollars in revenue:
In Q1 of 2023, the number of extended-stay hotels rooms increased to 51.5 million, a 43% jump from 2016
Extended stay travel brought in $4.37 billion in Q1 of 2023, a $2 billion increase from 2016
The average nightly cost of an extended-stay room offering kitchenettes is $116.74 compared to $212 for a standard hotel room with fewer amenities
5. Bleisure or Workcations
Interest in bleisure or workcations has increased 25% in recent years. This trend blends business and leisure travel, where business travelers extend their trips to explore the city or country they're in. Many companies are becoming more flexible, allowing employees to add vacation time to their business trips.
The duration of bleisure trips has tripled within the last 3 years
US business travelers take over 405 million extended business trips annually, with an estimated 243 million (60%) adding vacation time to their trips
When asked if they thought employees were more interested in blended travel post-pandemic, 82% of travel managers answered that their teams were now equally or more interested in adding leisure time to their business trips in according to a survey by the Global Business Travel Association (GBTA)
American Airlines revealed that nearly 50% of its $13.46 billion revenue was generated from bleisure itineraries, in 2022
Bleisure travel isn’t going anywhere. Julius Robinson, Chief of sales & marketing officer for US and Canada for Marriott International had this to say about bleisure travel:
“The idea of ‘bleisure travel’ is no longer a trend — it is here to stay. From The Ritz-Carlton to Residence Inn, our 30 hotel brands are well equipped to cater to different lifestyles, leisure pursuits, and interests, while also meeting the needs of and supporting working professionals.”
Conclusion
These five trends firmly establish that the present decade will be defined by extended-stay travel. As the dynamics of tourism shift towards longer stays, travelers, operators, and the hospitality industry at large must adapt to embrace this revolution. The future of travel is longer, slower, and more immersive.
