Hourly rate hotels get a bad rep. One startup is changing that for bargain travelers

It’s not a bad place to take a nap. Photo credit: victorias / 123RF Stock Photo.

A little over a year ago, I traveled to Japan to see a lot of friends. They lived pretty far apart from each other, which meant that I had a week to fit everyone in (and try to experience some of the country while I was there). That meant that I was always moving and only took a bit out of my day – less than eight hours – to curl up in a guesthouse and sleep. Most lodging places charge by night, though, so I was paying full price, even though I was barely there long to unpack and take a shower.

Short overnight stays are common for businesses as well. Seetharaman N experienced several of these types of stays and found himself wondering – was there any way the stay could be cheaper? If a hotel charged 30 to 40 percent of the room rate for a shorter stay, that would open the room up for other hours. It would also help attract customers.

I was paying full price, even though I was barely there long to unpack and take a shower.

But mentioning you’d like a hotel with an “hourly rate” gets you more than a few raised eyebrows.

“There’s a stigma attached when you want a room for a few hours,” admits Seetharaman. His startup 6hourly takes that into account and immediately makes two departures from an hourly rate hotel: hotel guests can book in six-hour increments (12 and 18 hour stays are alright – three hour ones are not) and it only partners with hotels that have been rated at least three stars.

The idea for 6hourly’s “microstay” service came around last year in March. The startup was operating in beta by October, and it launched a month ago. Seetharaman says 6hourly is currently available for 7,500 rooms across 25 Indian cities and is in the process of growing that number – its goal is to add 5,000 more rooms in the next month. Its five-member team works from Bangalore.

Persuasion nation

A plus of working with three to five star hotels is that there is more organization to work with, says Seetharaman. The hospitality industry traditionally has been unorganized, but the arrival of millennials and companies like Airbnb has shaken up the industry.

6hourly’s team. Seetharaman is in the middle.

Still, the startup had to clear two hurdles. Technologically, it had to build an engine for its partner hotels to book for hourly guests. On a more financial and moral note, it had to convince hotels that 6hourly was a lucrative partnership and wouldn’t bring down the image of the place of lodging.

There’s a stigma attached when you want a room for a few hours.

Seetharaman was frustrated at the accommodations’ “if it ain’t broke, don’t fix it” approach . “We found that the traditional [hotel] revenue managers are tuned to the 24-hour concept,” he tells Tech in Asia. After getting their work off the ground, though, things evened out. 6hourly now has a negotiation team which helps find new lodging centers and rooms.

The startup may also be getting a boost from the oil market. Though falling prices mean cheaper travel – more roadtrips and flights – it may hurt the hotel industry due to a lack of confidence in the market. A discounted hourly rate could look appealing to someone looking to save for a less certain future.

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