The hotel industry in the Philippines is experiencing a paradigm shift with the rise of hourly room bookings, a trend that is quickly gaining traction among both hoteliers and travelers. Hotels in this Southeast Asian nation began selling rooms by the hour in a more noticeable and structured way starting around 2022 to 2023, and this has transformed the way rooms are sold and consumed. In an industry that has traditionally been based on nightly stays, hourly booking has now emerged as a way to maximize room usage and revenue, while catering to guests' needs.
Who is Booking Hotel Rooms by the Hour?
Hourly bookings aren’t just for couples or budget-conscious travelers. The profile is now more diverse, driven by short and flexible stays.
- Business Travelers: These guests typically require a room for a short period between meetings, flights, or events. They’re not looking for a whole night’s stay—they’re looking for privacy, comfort, and convenience.
- Leisure Travelers: Couples and solo tourists often use hourly bookings for short breaks, daycations, or rest periods between travel legs. It’s a way to recharge without committing to a whole night.
- Transit Tourists: With the country's archipelagic geography, many travelers hop between islands. Hourly bookings allow them to rest, shower, and regroup between flights or ferry rides.
More and More Hotels are now selling rooms by the hour
About 25% to 30% of hotels in major urban centers in the Philippines now offer hourly booking options. That figure is expected to climb steadily as more properties recognize the operational and financial advantages.
While budget hotels were the first movers, especially in high-footfall areas like Boracay and Baguio, mid-range and upscale hotels are now entering space. These include business hotels, boutique properties, and even luxury brands that see value in catering to short-stay guests.
Benefits for hotels
- Maximized room utilization and revenue: Traditional nightly bookings leave rooms idle for large portions of the day. Hourly bookings fill those gaps. Hotels can now sell the same room multiple times within 24 hours, especially in business districts or near transportation hubs.
- Expanded market reach and enhanced guest loyalty: Selling rooms by the hour based on guests' needs allows hotels to appeal to a new and growing number of guests seeking flexible stays. Additionally, guests who value hourly stays are more likely to return and recommend the hotel to others.
- Enhanced operational efficiency: Shorter stay means faster turnovers. With the right housekeeping and tech systems in place, hotels can streamline operations and reduce downtime.
The benefits of hourly bookings for hotels are evident. Hoteliers who embrace this model will not only meet the needs of today’s diverse travelers but also ensure their profitability in a competitive and dynamic market.