A key question about the digital nomad life is “why?” – and that’s pretty easy to answer. Typically, it’s the freedom to explore the best of the world without constraints. Why work from an office park cabin when you can work from a beach in Bali?
In recent years, countries have invested heavily in digital nomad opportunities as more and more people find flexibility at work. Spain is the last in a long list of countries propose new laws that define a place in society for people who wish to live and pass through the country for a longer period than most tourist visas, without taking any local jobs.
Having a desk job and long-term housing can tie people up and make things like spontaneous travel or the joy of catching the seasons at their peak much more difficult than they ideally would be. And for this reason, one would assume that hotels are a very popular choice for digital nomads. They would also be wrong.
For those with location flexibility, this is extremely exciting. But for the others…
The rise of digital nomad opportunities has resulted in unique housing issues, from local rental agencies to Airbnb, and hotels have largely missed out on the big trend. As a general travel boon platter, hotels take on another look.
Hotels are increasingly creating products to divert nomads from long-term Airbnb or apartment rentals. And as we see more and more evidence of friction between nomads and locals, this may be good news for everyone.
From Bangkok to Barcelona
Thailand is trying to to position yourself as a perfect refuge for digital nomads.
The country is looking to recover from a protracted tourism slump and the fact that well-heeled digital nomads are spending money in local shops, bars, cafes and restaurants certainly doesn’t hurt efforts to boost local economies.
There is, however, much to discover about the impacts of digital nomads – and many points have not been fully explored. At the margin, is it better to have outsiders contributing to local economies, rather than paying standard residence taxes? I would say yes, but that’s just me. Does it revitalize areas, or drive up prices and force residents to move away?
Mexico would have a lot to say on this topic, right now.
And this is where the subject of hotels and nomads gets interesting.
Apartments, whether rented long-term or sublet through an Airbnb or similar equivalent, generally offer much better setups for nomads who need workspace, bedrooms, and other facilities like laundry or kitchen areas. Reliable wifi is a big deal.
They are also usually cheaper by a fair margin. But, as nomads flock in, rents rise – and people are pushed out of local neighborhoods.
A growing number of hotels are trying to change that, attracting digital nomads who aren’t necessarily becoming nomads for the extreme savings on accommodation, but for the locations themselves.
Maybe Bangkok for a month, then Ho Chi Minh, then Singapore, huh?
If compelling hooks are created, the hotel’s desire to woo nomads could resolve the issue between nomads and locals who are upset with the changing dynamics of the neighborhood. A kind of “come and spend, but don’t take our accommodation” agreement could emerge.
Take 137 pillars in Bangkok, a luxury hotel now offering 7-night and 14-night “digital nomad” packages, instead of traditional hotel stays. For what it’s worth, Barbados was one of the first countries to create hotel packages for long-stay visitors.
Back in Bangkok, nomads at 137 Pillars are offered five-star accommodation, plus…
- Free high-speed Wi-Fi
- Baan Borneo Club daily benefits include all-day breakfast, afternoon tea, coffee and snacks, and sunset drinks with panoramic views of Bangkok
- Thai massage or aromatherapy at the Nitra Serenity Center once a week.
- Yoga or meditation or Muay Thai classes once a week.
- 24-hour access to a fitness center and golf driving range
- Daily maid service
- Internal discount of 10-15% on additional food and beverages, spa, laundry and other services.
- A Thai SIM card is available for purchase and allows unlimited Wi-Fi.
- Suites Guests have 24/7 access to the rooftop pool, shuttle services, and butler service.
- Residence guests have access to an infinity pool on level 27 and shuttle services
Whether it’s for you or not, you have to admit it sounds good. Hotel groups such as Marriott, Hilton, Hyatt, Radisson and more have all offered longer stay packages, either as global initiatives or as bespoke offers from individual properties.
Marriott enters the vacation rental business is a clear sign that he doesn’t want to lose customers who choose apartments over hotels.
At around $1,000 a week, the 137 Pillars deal certainly isn’t cheap at all, but a New Yorker accustomed to renting a one-bedroom apartment with no amenities for more would probably be enticed.
It is not savings that are sought after for many nomads, but an ability to explore. And yes, obviously there are plenty of long-term rental apartments available in Bangkok for less than $1,000 per month.
Hotels exploring seductions
Why is an apartment better than a hotel room? Is it strictly the price? Is it the extra living room or the kitchen facilities?
Hotels have missed the digital nomad boat, and designing longer stay packages, or even tailoring rates and amenities to accommodate what someone making a hotel a “home” might need is really popular. This is even fueling the construction of hybrid hotels.
There are many features that residences would like to find in hotels, and obviously vice versa.
The challenge for hotels will be how to integrate alternative, longer-term pricing without negatively impacting guest perception. If nomads pay $100 a night for a large hotel based on seven-day stays, while guests staying five nights cost $250 a night, there is a risk of cannibalizing the core business.
At the same time, longer-term rates provide stability, and offering discounts to buy more of something is practiced in almost every industry. That’s how Costco works, after all. Can hotels follow the trend? Only time will tell.
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