Download as pdf or txt
Download as pdf or txt
You are on page 1of 8

How Hotel Guestroom

Entertainment Is Serving
Digital Nomads and
Bleisure Travelers

sponsored by

©2023 Hotel Business - hotelbusiness.com/reports


sponsored by

How Hotel Guestroom Entertainment Is Serving Digital


Nomads and Bleisure Travelers
Introduction
Business and leisure travel are blending to a degree never seen in hospitality, and with remote work
becoming commonplace, workers are more likely to hit the road more often. These travelers rely
on their personal devices to anchor their personal lives to travel, and their preferences echo a more
significant shift in traveler expectations over time. Learning how to meet the needs of bleisure
travelers, digital nomads and everyone in between requires a balanced approach to guestroom
entertainment for multiple surprising reasons.
For one, while streaming remains the fastest-growing entertainment option in the consumer
and travel spaces, the guestroom TV remains the screen of choice for viewing content. Hotels
with a robust entertainment suite capable of accommodating guest devices are well-positioned
to benefit as streaming continues to establish its popularity. However, live TV remains the most-
used guestroom entertainment option by far. Hotels must ask themselves how to meet travelers’
growing expectations in this changing entertainment environment.

To gain these insights, DIRECTV HOSPITALITY commissioned independent research with


HUB Entertainment Research, surveying 1,538 U.S. hotel consumers between the ages of 16 and
74 who have stayed more than one night at a hotel, motel, inn, resort or casino in the past year. The
data sample includes bleisure travelers and digital nomads and contrasts their answers against other
respondents. Findings from these submissions show a continued desire to interact with the hotel
TV, whether through cable programs or their personal devices.

Who are bleisure travelers and digital nomads?


The blurring of business and leisure (bleisure) travel has been taking place for some time, with
37% of corporate travelers from North America extending their business trips for leisure activities
in 20211. A 2023 report from Hilton found this figure had increased to 40% of business travelers,
clearly showing bleisure travel was not a pre-pandemic trend2.

Digital nomads are remote workers who use their job flexibility to work while traveling. These
travelers blend travel into their daily working lives and often frequent hotels, short-term rentals,
coworking spaces and recreational vehicles to enhance their travel experience. Despite these critical
differences, the habits of digital nomads are like those of bleisure travelers. Both groups value
technology and connectivity and demand a mix of streaming and traditional content to remain
entertained.

Among survey respondents, 24% reported extending their business trip for leisure travel. While
this represents roughly one in four hotel guests, it also represents 15% of the total traveling
population3.

According to Jon Giegengack, principal, Hub Entertainment, these findings show the impact of a
©2023 Hotel Business - hotelbusiness.com/reports page 2
sponsored by

generational shift on hotel stay habits. Bleisure travelers and digital nomads are much more active
on the road than other guests, with both groups staying roughly 50% more nights than other hotel
guests3. The survey also showed that these groups tended to be younger and more ethnically
diverse while representing a larger market share.

“Just as we’ve seen in our research among consumers at home, younger viewers are more
omnivorous when it comes to entertainment consumption,” Giegengack said. “They have access to
more platforms and use more diverse kinds of content, such as TV, music and gaming, than older
guests. Brands that want to appeal to younger travelers have an opportunity to make connectivity
and entertainment versatility a part of their messaging–especially if they want to stand out from
other properties that have not made that distinction.”

The guestroom TV remains a hub


Industry analysts have long pondered whether the guestroom TV would eventually be replaced
considering the rising number of guest devices, but large screens are here to stay. According to
Hub Entertainment Research’s survey, 47% of respondents consider live TV a must-have in the
hotel guestroom. Streaming, by comparison, was a distant runner-up at just 27%3; however, this
could be attributed to the technology’s gradual adoption rate and inadequate guest awareness of
its availability. Additionally, 21% of travelers said premium channels or free Video-On-Demand
services are necessary3.

©2023 Hotel Business - hotelbusiness.com/reports page 3


sponsored by

According to Kimberly Twiggs, associate VP,


market development, DIRECTV HOSPITALITY, The most popular personal
these results speak to the value of live TV in guest devices in 2023
hospitality across various demographics. “We
continually conduct research to keep a pulse on the 1.­­ Smartphones
state of the industry… and our recent survey found 54% of respondents use these
that live TV programming still tops the list of devices during their stay, and they
preferred hotel guestroom entertainment options,” are often travelers’ most
Twiggs said. “Nearly half of our respondents said consistent gateway to learning
live TV is necessary while traveling. also know direct information about a hotel,
from our research that 7 out of 10 guests want the
ability to stream content, saying the ability to watch and its amenities and services.
their own streaming services would increase their
satisfaction during their stay at a hotel3. 2­. Tablets
25% of respondents use tablets,
Hotels continue to rely on and value large screens and hotels must continue
to attract guest attention. To that end, 41% of considering tablet accessibility
respondents claimed they watch live TV every and formats when approaching
time they stay at a hotel, with just 24% saying the website design and guestroom
same for streaming services and 22% for YouTube3. entertainment options.
“For entertainment purposes, viewers still choose 3. Laptops
the biggest screen available,” Giegengack said. 24% of respondents use a laptop
“This is a benefit for hotels because the expanded during their stay, a trend that
capabilities of today’s smart TVs allow hotels to has seen a resurgence due to
use TVs as a home base for video, music, gaming,
smart home capabilities and more.” remote work and the plausibility
of the digital nomad lifestyle.
The value of the guestroom TV as a screen and a
hub for traveler entertainment remains significant 4. Streaming media players
considering new capabilities offered by technology (Apple TV, Roku)
providers. According to Twiggs, DIRECTV 13% of respondents said they use
HOSPITALITY’s Advanced Entertainment streaming media players on the
Platform (AEP) was designed specifically to road, showing a significant
provide traditional DIRECTV service alongside number of the traveling public
over-the-top, app-based content. By channeling desires direct access to their
a guest’s entertainment experience through the personal entertainment content
when they leave home.

©2023 Hotel Business - hotelbusiness.com/reports page 4


sponsored by

guestroom TV, hotel operators can provide quick


access to guest entertainment while providing The Fast Lane
property information and engagement options
using a customizable home screen, unique The success of any streaming service’s
promotional channels and more. application in hospitality simply
comes down to how fast its speeds are
“DIRECTV is out-pacing technology in the hotel and how reliable it is. This is true for
space with our AEP product by diminishing the both free and paid services, as guest
complexity of multiple logins for multiple services use of free internet tiers remains high
and revolutionizing in-room entertainment with while travelers who invest in higher
one aggregated, consistent experience,” Twiggs speeds demand quality service. The
said. “This is an ideal platform for brands to key to the future of connectivity is fast
differentiate themselves and to make full use of and free.
available guest entertainment technology.”
—64% of respondents said
offering the capability of
Streaming and guest satisfaction watching “free” streaming
Streaming is a significant aspect of consumer services would have a positive
entertainment today, and the most impactful impact on guest satisfaction3.
entertainment investment hotels can make is
the capability of offering Subscription Video On —29% of respondents said
Demand (SVOD) services to the hotel guestroom. access to a fast connection
Access to SVOD content creates parity with the would significantly increase
guests’ home experience by keeping access to a guest satisfaction, but drilling
guest’s personal entertainment on hand. According
to Hub Entertainment’s survey, 70% of respondents down shows more, with 52%
said the availability of native SVOD capabilities in of bleisure and 55% of nomads
the hotel guestroom would positively impact guest saying access to a fast
satisfaction3. However, this is not typically a simple connection positively impacted
plug-and-play solution hoteliers can invest in. guest satisfaction3.

Currently, there are 354 standalone, over-the- —33% of all respondents said they
top streaming and video services available in the were much more likely to stay
marketplace, up from 319 in 20194. Hospitality at hotels offering “fast”
technology budgets do not allow operators streaming services. Still, bleisure
to accommodate even a modest fraction of and digital nomads were
the available SVOD services for guests, so it 56% and 59% more likely to
book a stay based on
connection speed, respectively3.

©2023 Hotel Business - hotelbusiness.com/reports page 5


sponsored by

becomes necessary to determine the most relevant services to hotels. Clarifying the guestroom
entertainment space for your hotel may be challenging, but this year’s survey shows the benefits are
significant–if initially obscure.

As noted previously, providing guests with the ability to watch SVOD content from their own
subscription accounts increases satisfaction in 70% of guests3. However, drilling down into the
data tells us this is more impactful among specific groups of frequent travelers. Among bleisure
and digital nomad travelers, the ability to watch personal SVOD content positively impacted
satisfaction scores 60% and 64% of the time, respectively. Furthermore, generalized guest responses
show that 60% of respondents would choose a hotel based on their ability to watch their SVOD
content in the guestroom3.
These trends show the results of a gradual yet significant shift from traditional DVD and Pay-
Per-View content in favor of SVOD content. While this represents a departure from a revenue-
generating service to a satisfaction-generating service, it is ultimately the way of the future and
should be a priority for hotel investment.

According to Twiggs, today’s most influential hotel operators benefit from providing guests with
a flexible set of in-room entertainment options to provide personalization wherever possible.
“Guests crave the choice of either watching live TV or having the option to stream their content
because it allows them to conduct their stay on their terms,” she said. “This level of control is
personalized, choice-driven and creates a home-like environment in the guest space.”

©2023 Hotel Business - hotelbusiness.com/reports page 6


sponsored by

Larry Birnbaum, principal, Xenios Group, said the answer to increasing streaming adoption among
travelers and the utilization of the guestroom TV is to rethink the avenues travelers are given to
cast their content. The trick is allowing guests to cast their content easily and securely to the TV.
Birnbaum said hotels and the industry are adopting QR codes to connect guests and hotel devices
more efficiently while managing security concerns.

“When we talk about guestroom TVs and guest content, we need the ability to manage the hotel’s
entire network environment to provide secure casting of content,” he said. “Considering the
proliferation of new streaming platforms, the challenge of keeping up with developments in the
way casting is implemented by device makers, the costs of offering all available content, and the
associated digital rights management (DRM) to multiple streaming platforms on property, hotel
operators are incentivized to simplify the casting process to the guestroom TV.”

Conclusion
The guestroom entertainment space has evolved to keep pace with shifting guest preferences and
desires, and today those needs have come into sharper focus. Remote work has expanded workers’
flexibility. Along with pent-up demand for travel, the desire to cut the cord and break out into the
world has led to an uptick in digital nomad and bleisure travelers across all segments and markets.
These travelers have the same desires as traditional guests, only more so, with an increased need to
make their hotel a home away from home. This includes access to their personal content on their
terms, quickly and frictionless.

©2023 Hotel Business - hotelbusiness.com/reports page 7


sponsored by

Among all the new developments impacting hospitality, the importance and positioning of
the guestroom TV remain crucial to guest satisfaction. Travelers have expressed a desire to use
available screens in the guestroom alongside their personal devices, as they provide quick access to
the full suite of entertainment options a hotel offers. The guestroom TV continues to give guests
a lifeline to current events outside their temporary homes through live programming and internal
hotel updates.

Despite the enduring strength of live TV, streaming’s value to guests should not be underestimated.
TV’s overall usage by guests continues to diminish year-over-year in favor of streaming, which
has simmered to around 24% usage among guests3. This figure will likely increase as more hotels
adopt streaming technology, simplify access to guests’ SVOD content and inform travelers of its
availability.

Access to streaming directly correlates to improved guest satisfaction because providing access to
SVOD content increases personalization, which all guests desire. Access to streaming also plays an
increasingly prominent role in determining guests’ choice of property, particularly among bleisure
travelers and digital nomads.

Guests crave consistency and novelty equally, and streaming paired with the guestroom TV
complements their desire for entertainment while on the road. As the types of entertainment
options available to consumers continue to diversify, the TV as a hub remains consistent

1
https://www.gbta.org/sit-back-relax-and-stay-awhile-a-quick-guide-to-bleisure-travelers/

2
https://stories.hilton.com/2023trends

3
HUB ENTERTAINMENT RESEARCH Survey conducted May 2023 with 1,538 U.S. hotel consumers who stayed one or more nights
at a hotel, motel, inn, resort, or casino within the past year.

4
Parks Associates Research. OTT Video Market Tracker: Insights into the Evolving US Streaming Landscape
4/5/23 8:30 – 9:30am PDT

To learn more about DIRECTV HOSPITALITY for your hotel, please call 1.855.443.4484 or visit directv.com/hotels.

©2023 DIRECTV. DIRECTV and all other DIRECTV marks are trademarks of DIRECTV, LLC. All other marks are the property of
their respective owners.
©2023 Hotel Business - hotelbusiness.com/reports page 8

You might also like