The MULO Hotel is Alive and Well

Summer vacations have ended but millions of people are still traveling for both work and play. Business travel is almost back to its pre-pandemic level, with close to 500M trips taking place this year and the global business traveler market estimated to reach $2.1T by 2031. Despite the popularity surge for alternative lodgings like Airbnb and VRBO, MULO (multi-location) hotels are still popular for business and leisure travelers.

After all, a comfortable, clean place to sleep, housekeeping and food services, and loyalty points still have tremendous consumer appeal, even if those services can be pricier than alternatives.

“In the early 2000s, there were over 20 major hotel companies. Fast forward to today, and the 10 largest groups control a staggering 65 percent share of U.S. room supply.” Source

According to that same report, a whopping 67 percent of the hotels in the U.S. today are part of the franchise ecosystem. They fall into the categories of:

• Full-service chains (think Hilton)
• Select-service chains (like Courtyard by Marriott)
• Boutique (like Kimpton, known for their aesthetics)
• Resort (water slide anyone?)
• Extended stay (with laundries and kitchens, they serve as “home away from home” for both business and leisure travelers)

The top ten hotel groups ranked by number of properties are:

What’s Trending Among MULO Hotels?

Like all MULO industries, the hospitality world is focused on:

• New locations. As with retail and restaurant businesses, continually giving consumers new convenient options is a priority. In fact, 6,095 projects are currently underway, representing a total of 713K+ rooms, according to Lodging Magazine.
• Technology. Incorporated into all aspects of the guest experience, automation is driving down costs and (hopefully) improving guest convenience:
  • Travel apps that give consumers a wide choice of lodging
  • Phone apps that facilitate check-in and out and door-opening
  • In-room features, from temperature, TV, and window control to food ordering
  • Loyalty point programming, with integrations with other non-lodging and non-travel brands
  • AR and VR for property tours.
• Group experiences. Although hotels have long been gathering places for trade shows, sales meetings, and other business activities, the pandemic has upped the importance of live confabs and many properties have teams focused on building this lucrative side of their businesses.
• Sustainability and health features. About 80 percent of travelers will pay more for experiences that are earth-friendly, and many consumers are now focused on ensuring they won’t get sick while on the road.
• Bleisure. Many of us combined business and fun even before remote work became an option, but the trend is expected to scale at a compound annual growth rate (CAGR) of 12.1% from 2023 to 2030.
• AI. As in many other MULO industries, it will help identify consumer preferences, facilitate targeted marketing and up-selling, and help build brand loyalty and trust.

Because so many hotels and motels are not managed directly by corporate entities, exemplary customer service and brand consistency become even more critical. As we all know, a report of just one uncomfortable stay can spread on social media and impact future reservation-makers’ choices.

Speaking of lodging, be sure to check out some of the hotel options for Street Fight LIVE on November 7th! Learning, connections, AND loyalty points await!