How Hotels Can Take Advantage of the Staycation Boom

Due to logistical, economic, and environmental pressures and the convenience of a more local tourist attraction, many holidaymakers turn to the staycation for their getaways. After being forced to find alternatives to international trips during the pandemic, the staycation holiday has climbed to the peak of the tourist to-do list. Many hotels have adjusted their targets to appeal to this market.

With lockdowns behind them and with a newfound appreciation for the outside world, people relish the chance to travel like never before. While the tourism industry plummeted because of the lockdowns, short trips and local travel prove themselves an excellent outlet for these wanderlusting tourists^[1]. Hotels, bed and breakfasts, and air B&Bs can all look to capture this stay and vacation market with a few good strategies.

What is a staycation?

To go on a staycation means taking a domestic holiday (a holiday without travelling abroad). In countries with a variety of climates like Australia or the USA, this can still involve travelling somewhere hotter or cooler than your home.

The word staycation has been used to describe stay-at-home holidays since the onset of the 2008 financial crisis, though the practice has been common far longer than that. North American journalists began using this portmanteau word by merging “stay” and “vacation” into one catchy phrase to explain this simple, money-saving strategy in travel and tourism^[2].

Economic shifts heavily influence staycation trends due to the short-term reduction of international opportunities for holidaymakers. Travel agencies and travel bloggers can anticipate these moments and lean towards local options.

But local businesses that rely on tourism can predict when more or fewer people come to the area and shape business plans around these expectations. While Covid-19 clamped down on the tourism business, staycation figures boomed afterwards and these simple, cheap holidays have remained popular.

The values of the staycation market

Staycationers often look to relax in a manner they might have at some sunny overseas resort, but as a whole, they have interests as broad as the tourist market. A rural cabin with a hot tub, an inner city bedsit, or an upmarket, hotspot hotel will appeal to national tourists much the same as international. 

Expedia group's research into the values of current holidaymakers shows that most people intend to travel within the next six months^[3]. With money tight, fuel prices high, and travel disruption commonplace, many of these people will spend time closer to home on frequent, short trips rather than fewer large-scale overseas trips.

Despite this preference for numerous short trips and the rising fuel prices, vacationers also want more time to spend travelling through extended time off work and value this over any potential pay rise.

Given that shorter trips seem more likely options at present, this desire for time off work demonstrates this emerging desire to kick back and relax, to casually explore. This goes a long way toward explaining the staycation boom and why it has taken place.

It follows that tourists value less crowded tourist destinations which may favour small businesses in small-town locations where staycationers can relax. Given widespread environmental concerns, sustainable tourism also pushes travellers away from hotspots and the negative effects of overcrowding.

Staycation business ideas

Whether you’re a business owner with a large hotel, a smaller business or an Airbnb, adapting for staycationers doesn’t necessarily mean restructuring to any great scale. However, adjustments can be made that appeal to local tourism without compromising on other markets.

For instance, given that staycationers often look to book on late notice, with flexibility, and for short periods, making offers that appeal to any of these points can help boost bookings. For hotels that find themselves regularly underbooked, a good offer to extend bookings or cut-price offers on two-night or overnight stays could lead to an increase in local sales.

Short-term house rental businesses, like Airbnb, get enormous amounts of trade through these kinds of bookings, and during the holiday season often remain booked and make excellent revenue. However, staycationers create an opportunity for greater off-season sales through these short stay holidays. Consequently, targeting this market with similar short-stay offers could boost booking figures.

Tourism media mentions

Ensuring as many people become aware of your business’s area and your hotel means a larger pool of potential visitors to the area all considering staying at your location. A business can cultivate wider awareness by contacting travel bloggers or journalists with offers of a visit in exchange for the marketing provided in articles, reviews, travel blogs, and vlogs.

Partnering with local tour guides and other nearby businesses can also lead to productive relationships where each can bring trade to the other.

Building an online presence

A presence on online travel agencies and as many social media platforms as possible will lead to a stronger domestic reputation. Online travel agencies take a huge slice of bookings for staycations just as they do for international tourism. Though they take a cut of the fee, they also lead to more bookings.

Using social media to demonstrate the appeal of your hotel to staycationers provides the business with greater flexibility and control over the image projected. Documenting local appeal, other staycation visitors, special offers, or local/in-house events can entice any traveller no matter how near or far they may be. Google reviews can also optimise and validate any marketing your business carries out. Customers feel reassured by a strong Google rating

Email Marketing

These pricing strategies, while useful, need a tailored marketing plan to achieve the best results. When hospitality businesses stay proactive with email marketing they can ensure their hotel gets considered for unplanned or late notice trips.

Email marketing only targets repeat customers but might therefore lead to a business earning a stable group of regular staycationers that they can rely on. Establishing a sign-up option during your booking process can help cultivate a marketing list which can be managed through a POS system with a customer management function.

Businesses boom with the best POS solutions

Taking advantage of trading opportunities has never been easier. Epos Now POS solutions combine the latest transaction processing software and hardware with an integrated back office system to create all-in-one business system.

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