Does Hotel Room Size Matter?

Size matters when it comes to choosing the perfect hotel room. But does it really make a difference when it comes to guest satisfaction? While room size is undoubtedly an important factor, it is just one of many factors that contribute to overall guest satisfaction such as service and pricing vs. expectation. A virtual concierge can greatly benefit your service level and guest expectations, while lowering costs. Larger hotel rooms tend to be associated with higher levels of guest satisfaction. However, hotel owners must strike a balance between providing comfortable accommodations and ensuring profitability. In this blog, we explore the relationship between hotel room size and guest satisfaction and offer some rough estimates of average hotel room sizes in different parts of the world.

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Does hotel room size matter?

When it comes to choosing a hotel room, yes. Some travelers prioritize spacious accommodations, while others are content with a more modest space. But does hotel room size really matter when it comes to guest satisfaction?

The answer is not straightforward. While room size is undoubtedly an important factor, it is just one of many that contribute to overall guest satisfaction, such as services like a digital concierge. In fact, some guests may prefer a smaller room that is well-designed and functional over a larger room that is poorly laid out and cluttered.

However, there is evidence to suggest that larger hotel rooms are generally associated with higher levels of guest satisfaction. According to a study conducted by J.D. Power, guests who stay in larger hotel rooms (measuring at least 350 square feet, i.e. 33 square meters) tend to be more satisfied with their stay than those in smaller rooms. This is likely because larger rooms provide more space for guests to move around, store their belongings, and relax.

At the same time, it is important to note that larger rooms are often more expensive than smaller ones. Therefore, hotel owners must strike a balance between providing comfortable accommodations and ensuring profitability. This may involve investing in high-quality furnishings and amenities that enhance the guest experience, regardless of room size.

Ultimately, the relationship between hotel room size and guest satisfaction is complex and multifaceted. While room size is an important factor, it is just one of many that contribute to overall guest satisfaction. Hotel owners must consider a range of factors, including room layout, amenities, and pricing, to ensure that guests have a comfortable and enjoyable stay.

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Hotel room sizes around the world

The average hotel room size can vary significantly depending on the location and type of hotel. Here are some rough estimates of average hotel room sizes in different parts of the world:

• North America: In the United States and Canada, the average hotel room size is around 325 square feet (30 square meters) for a standard room in a mid-range hotel. Luxury hotels and resorts may have larger rooms, ranging from 400 to 600 square feet (37 to 56 square meters) or more.
• Europe: The average hotel room size in Europe is slightly smaller than in North America, with standard rooms typically measuring around 215 square feet (20 square meters) in mid-range hotels. Luxury hotels and resorts may have larger rooms, ranging from 300 to 500 square feet (28 to 46 square meters) or more.
• Asia: Hotel room sizes in Asia can vary widely depending on the location and type of hotel. In general, rooms in budget and mid-range hotels tend to be smaller, with standard rooms ranging from 100 to 250 square feet (9 to 23 square meters). Luxury hotels and resorts may have larger rooms, ranging from 300 to 600 square feet (28 to 56 square meters) or more.
• Middle East: Hotel room sizes in the Middle East tend to be larger than in other parts of the world, with standard rooms ranging from 400 to 500 square feet (37 to 46 square meters) in mid-range hotels. Luxury hotels and resorts may have even larger rooms, ranging from 600 to 800 square feet (56 to 74 square meters) or more.

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Hotel room sizes per hotel type

Hotel room sizes can vary significantly depending on the type of hotel, ranging from budget accommodations to luxury resorts. Here are some rough estimates of average hotel room sizes per type of hotel:

• Budget hotels: Budget hotels typically offer small rooms with basic amenities, such as a bed, a small bathroom, and perhaps a desk or chair. The average room size for a budget hotel is around 150 to 200 square feet (14 to 19 square meters).
• Mid-range hotels: Mid-range hotels offer more space and amenities than budget hotels, with rooms typically ranging from 250 to 350 square feet (23 to 33 square meters). These rooms may feature additional amenities such as a mini-fridge, a seating area, and a larger bathroom.
• Luxury hotels: Luxury hotels offer the most spacious and well-appointed accommodations, with rooms ranging from 400 to 600 square feet (37 to 56 square meters) or more. These rooms may feature high-end furnishings, a separate seating area, a balcony or terrace, and a large bathroom with luxury toiletries.
• Boutique hotels: Boutique hotels are typically smaller, with rooms that range from 150 to 400 square feet (14 to 37 square meters). These hotels often feature unique decor and personalized service, with amenities that may include a small bar or restaurant, a fitness center, and complimentary breakfast.
• Resorts: Resorts offer a range of accommodations, from standard hotel rooms to private villas and suites. Rooms at resorts can range from 350 to 600 square feet (33 to 56 square meters) for standard rooms, with larger suites and villas ranging from 800 to 1,500 square feet (74 to 139 square meters) or more.

It's important to note that these are rough estimates and can vary significantly depending on the specific hotel and location. Additionally, there are many other factors that can impact hotel room size, such as local building codes and zoning regulations, market demand, and the hotel's target clientele.

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The impact of hotel room size on key performance indicators

Hotel room size can have an impact on several important metrics for a hotel. Here are a few examples:

• Occupancy rate: The size of a hotel room can affect the number of guests that can comfortably stay in a room. In general, larger rooms can accommodate more guests, which can increase the hotel's occupancy rate. Higher occupancy rates can increase revenue and potentially improve EBITDAR.
• Average daily rate (ADR): Hotel room size can also impact ADR, which is the average rate charged per room per day. Larger rooms are typically more expensive than smaller rooms, so hotels with larger rooms may have a higher ADR. However, the hotel also needs to consider the target market and local competition when setting room rates. Higher ADR can increase revenue and potentially improve EBITDAR.
• Revenue per available room (RevPAR): RevPAR is a key metric for hotels that takes into account both occupancy rates and ADR. Larger rooms can potentially increase RevPAR by accommodating more guests and commanding higher rates.
• Gross Operating Profit per Available Room (GOPPAR): GOPPAR is a profitability metric that takes into account a hotel's total revenue and expenses. It is calculated by subtracting total hotel expenses from total hotel revenue and then dividing the result by the total number of available rooms.
• Guest satisfaction: The size and layout of a hotel room can impact guest satisfaction. Guests may feel cramped or uncomfortable in smaller rooms, while larger rooms may provide a more luxurious experience. However, it's important to note that guest satisfaction is influenced by many other factors besides room size, such as cleanliness, amenities, and customer service. Improving guest satisfaction can lead to higher occupancy rates, ADR, and ultimately, improved EBITDAR.

It's important for hotels to find a balance between room size and other important metrics, such as guest satisfaction and operating costs, to optimize profitability and ensure guest satisfaction. While larger rooms may potentially increase revenue and occupancy rates, they may also increase operating costs, such as cleaning and utilities, which can impact EBITDAR. Additionally, hotels need to consider the preferences and needs of their target market when designing and marketing their rooms.

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Hotel Room Pricing and Room Size

Hotel room size can have an impact on hotel room pricing. Larger rooms are typically more expensive than smaller rooms, but pricing can also depend on factors such as location, amenities, and competition. Here are some ways that hotels can optimize their pricing strategy based on room size:

• Market research: Hotels need to research their target market to determine what they are willing to pay for different sizes of rooms. By understanding the preferences and behaviors of their target market, hotels can price their rooms more effectively to maximize revenue.
• Competitive analysis: Hotels need to analyze the prices of their competitors to determine how their pricing strategy compares. If a hotel has larger rooms than its competitors, it may be able to charge a premium for those rooms, but if the prices are too high, it may lead to lower occupancy rates.
• Dynamic pricing: As mentioned earlier, hotels can use dynamic pricing to adjust room rates based on demand and availability. By using pricing algorithms, hotels can optimize their room rates to maximize revenue while still appealing to their target market.
• Room configuration: Hotels can configure their rooms to offer a variety of sizes to appeal to different segments of their target market. For example, larger rooms may be ideal for families or business travelers, while smaller rooms may be more suited for solo travelers or budget-conscious guests. By offering a range of room sizes, hotels can optimize their pricing strategy to appeal to different segments of their target market.
• Special offers and promotions: Hotels can offer special deals and promotions for larger rooms during periods of low demand to attract guests and generate revenue. For example, hotels can offer a discount on larger rooms for guests who book in advance or stay for an extended period.

Optimizing hotel room pricing based on room size requires a strategic approach that takes into account market research, competition, dynamic pricing, room configuration, and special offers and promotions. By effectively pricing their rooms, hotels can maximize revenue and profitability while still meeting the needs and preferences of their target market.

There is some evidence to suggest that there may be a non-linear relationship between hotel room size and hotel room prices. Research has shown that while larger rooms are generally more expensive than smaller rooms, there may be a point at which increasing room size no longer justifies a higher price.

One study conducted by STR analyzed hotel room pricing and occupancy rates in the United States and found that while larger rooms do command higher prices, the relationship between room size and price is not always linear. In some cases, there may be a point at which increasing room size no longer results in a significant increase in price.

Another study published in the Journal of Hospitality and Tourism Research found that there may be a non-linear relationship between room size and price in the luxury hotel market. The study analyzed data from luxury hotels in New York City and found that while larger rooms were generally more expensive, there was a point at which increasing room size did not result in a proportionate increase in price.

While more research is needed to fully understand the relationship between hotel room size and pricing, there is some evidence to suggest that the relationship may not always be linear. This highlights the importance of carefully analyzing market demand and consumer preferences when setting room rates.

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Concluding

To sum up, while hotel room size is an essential factor in guest satisfaction, it is just one of the many aspects that contribute to a guest's overall experience. Larger hotel rooms tend to be associated with higher guest satisfaction levels. Nevertheless, it is crucial for hotel owners to strike a balance between providing comfortable accommodations and ensuring profitability. The relationship between hotel room size and guest satisfaction is complicated and multifaceted, with other factors like layout, amenities, and pricing also playing a role. Hotel room sizes can vary considerably depending on the location, type of hotel, and the specific needs of the target clientele.

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References

1. STR. (2017). “STR: Bigger hotel rooms aren’t always better.” Hotel News Resource.
2. Ryu, K., Han, H., & Kim, T. H. (2008). The relationships among overall quick-casual restaurant image, perceived value, customer satisfaction, and behavioral intentions. International Journal of Hospitality Management, 27(3), 459-469.
3. J.D. Power. (2019). 2019 North America Hotel Guest Satisfaction Index (HIS).
4. Akinlabi, B. O., Ayoade, F. O., Akinlabi, E. T., & Ogunyemi, B. (2019). Hotel Room Price Determination Based on Dynamic Pricing Model Using Nonlinear Programming Method to Maximize Revenue. Journal of Hospitality and Tourism Research, 43(6), 839-867.