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Are Micro Hotels the Future of Travel?

A new report suggests micro hotels could be the hottest new trend in travel, with the market primed to exceed $84 billion by the end of 2022.
Are large hotel rooms and suites going away in favor of smaller, more compact micro hotels?


A new report from Future Market Insights suggests that compact rooms could be the wave of the future, with the industry project to grow significantly in the next year as travel comes back online.


With Travel Coming Back, Travelers Eye Smaller, Cheaper, Compact Spaces

Travel has come back in a big way in 2022. With countries opening borders and flight frequency increasing globally, flyers are once again eager to see the world. But as those travelers go to their favorite destinations, they also need a place to stay once they get there.


Once thought of as a novel concept, 2023 could be the year of the micro hotel. According to the study from Future Market Insights, the industry could grow to over $150 billion dollars by the end of next year, with both North America and the Asia Pacific regions holding the highest market share of small rooms.


There are several factors going into the demand growth for micro hotels. Beyond price, the COVID-19 pandemic has increased traveler awareness of the option, with cleanliness and privacy impacting the micro hotel industry by 30%. Online, travelers are searching for micro hotels with more frequency as they come online through booking channels and social media. Finally, more destinations are embracing the small room craze, as New Zealand, the United States, France, Japan, the United Kingdom and Italy coming forward as the top destinations for micro hotels.


“By providing all-inclusive packages and sparing travelers from the trouble of navigating several channels for their excursions, the major [micro hotel] players are able to keep their competitive advantage in the market,” the report summary reads. “Government investments and initiatives are stimulating the market, and they have also assisted the businesses in enhancing their service offerings.”


Full-Service Hotels Remain on Radar for Years to Come

Although micro hotels are growing in popularity, major hotel chains are still betting on travelers wanting bigger spaces and full-size hotels in the future. A 2021 report shows hotels were planning to develop over 300,000 new rooms in the coming years across over 3,000 construction projects.


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Feature image courtesy: Marten Bjork on Unsplash

AllanJ January 28, 2023

I have only one example (one sample) to go by so I can't draw any conclusions (should not jump to any conclusions).

A few months ago I was shopping for a hotel near San Francisco Airport.  I found that the micro hotel cost somewhat more than a nearby "regular" hotel.

volabam November 8, 2022

The big hotel chains have successfully used COVID as an excuse to "change expecations" around housekeeping, amenities, and elite status and now are all shocked Pikachu face when people decide to just pay less at Drury Inn rather than fork over $400 or $500 a night to not have a room cleaned and have to tip for fresh towels each day.

jsn55 November 7, 2022

With truncated services and sky-high prices, lots and lots of travellers will be taking a hard look at where they book their travels.  I just booked 2 rooms for 2 nights at a Premier Inn @Heathrow for less than I could have booked one room at my fave 5* right up the walkway.  It's new, it's clean, the staff is lovely, and I can get something to eat and drink.  Why would I chose anything else?  My 5* will give me goodies in the Lounge, but I can buy goodies at Premier for a nominal price.  So .... it's a no brainer.  I love my luxury, but I don't like paying more for less.  Other than hard-core biz travellers on comfortable expense accounts, I think the big hotels have a surprise coming towards them.