Briefing: Design – Demand and revenue

Author: Guy Lean

Hotel design is rapidly evolving to keep up with consumer demands and global trends. When it is done well, clever design can really add to the revenue of a hotel.

The hospitality industry spends annually about $3.7 billion on energy. Initiatives like UNWTO’s Tourism and Sustainable development goals are in place to help companies making good choices. A reduction in room size has emerged as another trend that can save hotels money while maximizing space through design.

In this briefing our experts discuss design drivers and profitability:

The pod or ‘capsule’ hotel concept, originated in Japan where space is exceptionally tight. It is being used mostly in airports and cities. Marriot has taken on board the small room concept in its Moxy brand, which has one hotel open so far at Milan Malpensa Airport. Yotel has hotels in New York, London, and Amsterdam. The successful Pod Hotel from BD Hotels has two hotels in New York, and one planned in Washington DC.

Sustainability has become an important aspect of development in all industries. As one of the worlds’ largest industries Travel and Tourism has a huge footprint.  According to the UNWTO, the industry accounts for 5% of greenhouse gas emissions, and a typical hotel uses 218 gallons of water per day per occupied room. As discussed above, improvements in this area will not only greatly benefit society and the environment, but can reduce outgoings for the hotel.

Although this movement is not driven by the consumer as much as other changes in design, such as social areas in hotels and wifi, studies have shown that guest are very much in favour of sustainability programmes. A study from Cornell University found that three quarters of guests participate in green programs when they are offered at the hotels, and 45% of guests in one hotel in New York said they would be willing to pay a higher room rate for hotel sustainability initiatives.

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Video clips produced by for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.