Remote Work Models That Hotels Should Follow Now

Hotels could soon find themselves competing with shops for their share of distributed workforces, as flexible workplace provider IWG trials a new concept in Napa Valley, California.

“We’re trying to utilize retail space, and incorporate places to work within a bigger retail setup. It depends on the type of shop, but we’re trialing things,” Simon Loh, its chief operating officer, UK, told Skift.

IWG, which owns brands including Regus and Spaces, has taken on 500,000 new members in the past six months. Now it needs to test new models to meet new demands, and hotels should watch carefully.

Part of IWG’s effort centers around creating safe working environments. While it’s already offering Covid testing pods at some locations, it goes further than medical needs. It has now acquired a majority investment in The Wing, a community and co-working space company designed for women.

IWG operates Basepoint Business Centres in the UK.

“It’s a membership lounge, so a slightly different business model,” Loh said. “Our aim is to scale that business … We’ve put our markers down on a few things. The Wing is all about female networking, and having that space to collaborate, and do it safely, that’s front of mind for us.”

And as some brands, including Selina, start promoting the social side of their properties, Loh said this was also a challenge IGW faced: “In today’s world, how do we facilitate that, in a way that works for more people. How do we support that collaboration?”

Banks Lead the Way

Financial companies Standard Charter and EY, as well as Nestle and technology company NTT, are among IWG’s latest big name sign-ups. “They’re looking to exit their usual footprint,” Loh said. “They’ve now started moving towards these membership deals. Under those enterprise deals, our business model is now going to start adapting with different demands and technology. It’s an exciting space at the moment.”

A growing number of companies are now looking to offload their offices for a range of reasons. That could accelerate towards the end of this year as some wait until they can break free from their contracts. They’re effectively bleeding cash until they can reach their break clause, but avoid incurring large penalties.

Meanwhile, IWG is exploring regional cities, away from capitals. In the UK, for example, it could be going to smaller places in Wales, or Cornwall, and is already seeing a pick-up in commuter hubs.

Despite its membership boost, IWG wasn’t immune to pandemic in 2020. It reported an adjusted operating loss of $240 million for the 12 months, and closed some of its centers. It also raised $920 million through the issue of a new equity and convertible bond.

Hotel groups are already catering to remote work, in particular Accor with its Wojo brand. But IWG’s broadening scope should give hotels plenty to think about — in particular those groups who think switching rooms into offices will be enough.

“Our intent is to continue shaping the world of work,” Loh said.

IWG already has one million future members in the pipeline, but with its prediction that  1.9 billion people worldwide will be working flexibly by 2022, there’s enough to go round.

Sidenotes

What does a subscription service for business travelers look like exactly? We now get to find out, as corporate travel-focused hotel group Mint House is officially launching the “Mint Pass” next week.

The subscription, which Skift revealed was in the making in January, costs $250 a year. Members get 30 percent off each stay over five nights. There’s also a flexible cancellation policy, so guests can cancel up to 48-hours before check-in, as opposed to its standard seven day policy. Stay in five different cities, members gain “Nomad Status” and earn a free night.

The discounts will be useful to companies, but unlimited stays may fall short of some expectations.

Mint House properties are also being plugged into American Express Global Business Travel’s new Workplaces platform. Through this, its property at 70 Pine Street in Manhattan is now offering day-use work spaces to guests.

A new report from Microsoft says this kind of hybrid work is inevitable. “When you lose connections, you stop innovating. It’s harder for new ideas to get in and groupthink becomes a serious possibility,” said Dr. Nancy Baym, its senior principal researcher. The report also discusses how rebuilding social capital, mentioned in an earlier Future of Work Briefing, is a business imperative.

10-Second Corporate Travel Catch-Up

Who and what Skift has covered over the past week: Amadeus, AOKpass digital health passport, CommonPass (video), Locomote, Lufthansa Innovation Hub, Onsite Covid safety, Pangiam.

In Brief

Virtual Meetings Here to Stay?

A new Global Lodging survey of travel managers from Morgan Stanley Research has said they now predict a 44 percent shift of travel volume towards virtual meetings, up from 34 percent when quizzed in October. It polled 200 travel managers, who represent $7 billion in annual travel spend, between March 3 and 15 this year. They have become bearish despite the vaccine rollout, which Morgan Stanley believes is because of the relative success of virtual events and the cost savings they bring. It also found more openness to using alternative accommodations.

TapTrip Partners Up With TravelPerk

TapTrip has partnered with TravelPerk to integrate its TravelSafe API, a new product that allows agencies, tour operators, airlines and travel management companies to supply its customers with real time insights on point-to-point travel restrictions and requirements, Covid-19 transmission levels, vaccine exceptions and local guidelines directly into their interface.

TripActions Has Its Eyes on Europe

Corporate travel agency TripActions has taken on Simone Buckley as its new vice president of marketing for Europe, the Middle East and Africa. Buckley was previously CEO of Fello Travel, and is a well known figure in the UK, having previously been CEO of the UK’s Institute of Travel Management. TripActions has also launched new rail partnerships to expand in Europe with Trainline for Business, and added more languages to its app, including German, French, Spanish and Italian. It also plans to open a new data center in Frankfurt, Germany, chief customer officer Ciara Govern said during its Europe Destinations virtual event on Monday

Capita Travel and Events Gears Up for Change

UK business process outsourcing firm Capita has said it won’t be able to sell its travel management division until 2022 or 2023. Capita Travel and Events currently sits in its Specialist Services portfolio, a division of its businesses which are not within Capita’s growth markets. The Specialist Services division saw a £100 million drop in revenue in 2020, with a corresponding falling margin from 15 percent to 2.2 percent. “Unfortunately, some of the assets, specifically our corporate travel and events and resourcing businesses, have been hard hit by Covid and will likely take some time to recover before we would wish to dispose of them,” said Capita CEO Jon Lewis. Meanwhile, Capita Travel and Events has appointed Donna Fitzgerald as its chief operating officer, starting May 1, 2021. She will also become an executive team member.

Indonesia Will Launch a Digital Nomad Visa

Indonesia is creating a new five-year visa to enable foreigners to live and work in the country without a work permit. According to reports, Tourism and Creative Economy Minister Sandiaga Uno is hoping to attract digital nomads to boost its coronavirus-hit tourism sector.