Mexico & The Future of BYHOURS
2019 will bring some big changes for BYHOURS, and a main one will be the expansion of the BYHOURS Mexican market and the preparation for the opening of BYHOURS regional offices in Mexico City.
Back in 2012 BYHOURS was a pioneer in introducing the microstay in hotels of three, four and five stars in Europe to the hotel and tourism market. But now the focus is currently to implement the system in Latin America, where BYHOURS sees Mexico as the most relevant market, and now the next step is not only to seek more alliances with hotels but also open regional offices in Mexico City.
Overall, Mexico has been an extremly receptive market, where BYHOURS arrived to Mexico in March 2018 and started with 50 hoteliers in alliance, at the end of the year, we had 88, which represents a 76% growth, just in nine months.
The Mexican Hotel Industry
The Mexican hotel industry has proved to be very open and embracing to BYHOURS, ¨hotels are open to experiment and implement best practices with collaborative economies, in which only what is consumed is paid for and personalized experiences are guaranteed”, quotes BYHOURS founder Guilelrmo Gaspart.
One of the reasons why the founders consider that this business model has been attractive for hoteliers has to do with the arrival of collaborative economy platforms such as Airbnb, however, it stands out that one advantage over these hotels is that hotels have a 24 hour lobby.
“Usually, when hiring an apartment, an agreement must be reached about the arrival time based on the time that guest and landlord establish. However, in the case of hotels they already have qualified personnel available and they also have other services that can provide a better travel experience for users, “emphasizes Gaspart.
The microstay BYHOURS model makes the hosting more flexible for users, giving freedom in aspects such as the choice of check-in time, as well as the amount of time they will use the room, which can be 3, 6 or 12 hours. The way of working this tool is through agreements with hotel chains, who accept this type of flexibility for users who prefer it. For example hotel chains that have already signed with BYHOURS is City Express and Holiday Inn.
Finally, the preferences of the guests indicate that, when they choose micostays for three hours of accommodation, they choose four-star hotels (equivalent to 56% of the total number of choice); then they are followed by three-star hotels, which are 23% of preferences and five-star hotels, with 13% of the overall number analyzed upon arriving in Mexico and verifying the data of the countries in Latin America.
Business Travellers & Mexico
As Mexico is one of the most promising markets in Latin America for both the hotel and tourism sector, it makes Mexico City a key city for general and business travalleres. Due to the increase in business travel the needs of business travelers to have hotel rooms that are rented by the hour and have flexible opening hours are on the rise.
When it comes to business tourism, the interest of BYHOURS continues to increase in Mexico, where just business tourism in Mexico currently has an estimated market value of 17 billion dollars, according to Carlson Wagonlit Travel (CWT),
Tourism in Mexico
Mexico is now the sixth most visited country in the world, with more than 39 million tourists visiting Mexico every year. It has become one of the most important destinations for overall travellers in Latin America, having grown by 18.8% compared to the regional 15.5% that occurred from January to September 2018. Therefore, it makes a lot of sense that not only is it possible to penetrate the market of business, but also in the tourism sector.
Mexico City is especially a very important destination for connecting travelers who need to make a stopover at the airport when travelling internally or to another destination. Therefore, BYHOURS sees in Mexico City the opportunity not only to open spaces for executives who would usually prefer to go to a cafe or a space to work, but for all travellers, now they could choose to rent a room inside or next to the airport to rest when travelling with their family, for instance.
Hotel Travel Report 2018, developed by the online travel metasearch Kayak, ensures that one in seven people searches for destinations within their country. This information represents a very promising scenario for BYHOURS, since the main consumers of national destinations are the Mexicans themselves. BYHOURS has noticed that the national and international traffic of visitors and the growth in business trips are key facors to focus on equally.
In this context, microstays are high in demand with tourists and travellers due to the flexibility in costs and times. “We feed tourists’ aspiration to want to know more in less time, attracted by the variety of destinations in practically the 31 states of Mexico.¨ says BYHOURS founder Guillermo Gaspart.
In the words of Gaspart, BYHOURS sees great business and investment potential in the Mexican hotel sector, motivated by the influx of national and international visitors to the capital, but also to other emblematic cities of the country. “Mexico City is, to a large extent, a final destination, but also a point of interconnection for business travelers in the capital as well as for families who stop at the airport,” he adds.
Technology & Mexico
Another favorable element that stands out about Mexico has to do with the hospitality and tourism adopting and welcoming new technologies to increase the attraction of visitors, their loyalty and to optimize any internal logistics or administrative process. The Mexican markets embraces the use of phone apps that put personalization at the forefront of experience, such as the use of Artificial Intelligence (AI), connectivity, video surveillance and the icloud, to name a few.
In addition, the opening towards new technologies and tools also shows a greater advance in this country, with respect to other Latin American nations, which makes adaptability to new processes and concepts, such as using microstays and the readiness to book them through the app, easier.
Mexico City, the next BYHOURS base
It is important to highlight that because of the previously mentioned aspects, BYHOURS has high confidence in the good performance of the national hotel and tourism sector. BYHOURS founders Christian Rodriguez and Guillermo Gaspart have declared: “This year, Mexico will be our strategic geographical point from where we plan to conduct our regional operations, and trace our First steps towards the United States, opening an office in Mexico City. In addition, we have already attracted the interest of Mexican funds and investors, who we hope will start working with us in the short term, “.
To conclude, BYHOURS is extremely excited about its future plans in Mexico and in Latin America overall.