BYHOURS is a start-up that was launched in 2012. It partners with hotels and creates an online platform that allows users to book these hotel’s rooms by the hour. Flexibility is the most important value they offer, allowing the customer to choose between 3, 6 &12 hours stays and the time of check-in & check-out. 

After validating their business model, BYHOURS is ready to grow their customer base, by approaching new user case scenarios. The challenge for this project is to answer the next question: “How might BYHOURS extend its market with new micro-stay use cases?”

To solve this question, we did several trend researches, including digital nomads, co-working spaces and boutique hotels; data researches with an important finding, telling that 67% of short-term stays are made in less than 24hrs (eHotelier,2017). Also owing to the focusing in finding new extreme users, we did 38 interviews from our network, neighbors and with the people we met at airport.

And we got some insights from these interviews.  

Diego i sa freelance photographer and graphic designer. He travels to take wedding photographs but he is in need of a changing and a safe environment. He wants to have a chance to find punctual space to rest and to do other works for a short period of time. So BYHOURS can provide inspirational spaces for freelancers to work privately for a short time.

Selda loves attending different event/outing/meeting after work. But she is a daily commuter because of living far away from work place. She wants to have access to some services for very short time to be ready for the night. So BYHOURS can provide nano services/stays.

Ahmet travels alone and likes staying exclusive hotels. But he generally prefers hostels to meet new people in the city he visits. He wants to be social while staying in exclusive hotels. So BYHOURS can create a sociable environment for people to give them a chance to connect other people.

Jason works for a big company and he travels for business. He uses an intra platform to organize his travels. But he finds the intra platform very limited. He wants to have more options offered by this platform that his company conducted. So BYHOURS can use these kind of platforms and reach businesses and professional organizations to offer more benefits/options to employees and members.

Jane is a mother and a local tourist. She loves to travel but in a tighter financial situation. She wants to feel like on a vacation on a budget. So BYHOURS can provide some trips-like moments to people that can't afford to travel away.

Then we decided to focus on first two insights; take advantage of routine (Diego), and nano services/stays (Selda).

When we turn back to the Diego’s situation again; he needs a place to have a rest and do some work after a long drive and wedding photography work. But he does not want to spend his night at hotel. So he turned back after finishing wedding photography job with his tiredness and works which should be done. However, he is in need of a space to do some work and have a rest.

At this point we shaped our first opportunity question; “How might BYHOURS help users shape their micro experience in the hotels?” And we created the “Service Kits”. This is a concept that BYHOURS can offer some extra packages to the customers besides 3, 6 and 12 hours stay. With the help of these packages, customers can have hotel services at reduced price.

There are two different main kits. The first one is basic kit with food beverage service, including meals and room service and unlimited coffee or tea; also people can add one more service like laundry, spa treatment.

Second one is premium kit. It has two different options for leisure and work. If people choose leisure one, they will have food and beverage with meal and room service and discovery cocktails, some other special features such as spa treatment, movie streaming and popcorn etc.; also they can add extra service like co-working space etc. And in the work one, they will same have food and beverage but with a difference, consisting of unlimited coffee or tea instead of discovery cocktails, special features such as premium Wi-Fi, co-working space etc.; also similarly they can add extra services like spa treatment etc.

Customers can add these kits to their stays during the booking process on BYHOURS’ online platforms.

Through these service kits, BYHOURS provide enhanced micro-experiences to their customers while it makes more money and gain customers. Also the hotels have more customers and sell more services, as customers have more services with less money.

For the first phase of service kits, we planned to implement of Basic and Premium Service Kits with existing hotel services. So the customers can start to benefit of these kits. The only thing we fear for this easy and quick implementation is potential hotel restrictions to discount. On the other hand, even if they have some restrictions about service discount, they can easily adjust them because they have chance to sell more services and make more money with services.

And for the next step we planned for 2021, BYHOURS can integrate with service business within 1km in the areas of partner hotels to be able to create more options for users and provide improved experiences to them through BYHOURS. Although scheduling availability problems and lack of different service options may cause problems to integrate with other service businesses, having an opportunity to reach more local and foreign tourists through this collaboration with BYHOURS push businesses to arrange the schedule; in addition, the fact that there are too many hotels close to the city centers makes it easier to find and collaborate with different services.

In the third step of service kits, we worked up creation of a double-sided platform where service providers could offer their services by hours through BYHOURS in the care of keeping service quality.  

To implement these ideas, the first step for 2019 is doing some deeper researches on hotel services for kits development and website and application prototyping to integrate kits option to the existing platforms. After this implementation works, negotiation with service businesses within 1km in the areas of partner hotels and scenario prototyping should be done for second phase of service kits. And last steps for the double-sided platform creation in 2023 are doing researches on expanding services and double-sided platform development and prototyping.

As a second insight from interviews, when we look to the Selda’s situation; she really likes to have an event/outing/meeting at night near work. But she just goes to the work in mornings and turns back home at nights due to leaving far away from work and not having time to go home to take a shower, get outfits etc. She needs to access to some services for very short time to be ready for the night.

So we created our second opportunity question; “How might BYHOURS introduce nano service experience to users?” And we designed the “Nano Services”. The nano services offers hotel services, facilities and rooms to the customers for 15-30-45 and 60 minutes.

Nano services works with fast check-in/check-out system. It is prior for the concept to be implemented because the duration of service/stay is pretty short. Responsively there are some existing systems and technologies for fast check-in/check-out.

Also nano services provide membership card program. Customers can credit their card and use it in booking of nano services. Additionally, they get some discounts for future booking thanks to the points they gained from their previous nano services bookings. And they can get some extra discounts on transportation through new partnerships.

By providing nano services ,actually BYHOURS present the maximum flexibility to its users, while it makes extra money from nano services and have new customers. Also the hotels have more customers and increase the use of services and facilities, whereas the users have access to the services for short periods.

For the first phase we planned to introduce the nano service as a part of booking options. Namely, through the BYHOURS application or website users can book a hotel room or an existing hotel service without a room by minutes. In this first stage, there may be a doubt that some hotel and legal regulations will restrict the service in some points to launch this service. But actually we do not think that BYHOURS will face with a really big problem in that point. Because according to our benchmark research we realized that through a new application (Recharge) some of hotel chains like W Hotels started to sell their rooms just for minutes (in US). So we do not believe regulations will create a big problem for BYHOURS. 

In three years after this first launch of nano services through BYHOURS, BYHOURS work out with hotels about the creation of nano-stay rooms which are more suitable for these short and fast stays like some special rooms or spaces that are less furnished. On the other hand, creation of these special rooms maybe will increase the prices of the nano services/nano stays. But against the negative effect of this increase an important advantage is that this price increase will be 3 years after the first launch of the nano services, after users got accustomed to use nano services. Moreover, the hotels will maybe help to adjust prices to make them more user friendly because of having a chance to make extra money and to improve awareness/familiarness of the hotel with the help of nano services. So we believe that also in this phase there will not be a problem which is too hard to overcome.  

And for the last phase of the project we again planned to offer a double-sided platform where outside service providers could offer their services and spaces which are suitable for nano services/nano stays through BYHOURS. Since it is certain that BYHOURS is placed in between the users and service provider. But only the users can see the other side of the wall, and reach providers. If the BYHOURS will start to be a little bit more open for both sides and let the service providers offer their services and find the users, we believe this will increase the interaction between users and the suppliers on the BYHOURS platform. Only one thing, which may not be positive, is that controlling service quality users have can be more difficult in this platform than in the current one. But we do not think it is impossible to control, because we have several good examples like Airbnb.

For the first phase of the implementation of nano services, some researches should be done about the existing technologies for micro-chipped card and software/hardware systems to be able to offer fast check-in/check-out to users in nano services. And website and application prototypes should be created and tested for the integration of nano services. Also the membership card program should be developed. And in the second phase, it isnecessary to meet with hotels about the creation of nano-rooms. Also some service and hotel scenario prototypes should be created and tested. For the last one, again some researches should be done to expand service suppliers and integrate with them. And a double-sided platform should be developed and tested.

In the end we have two different solutions. Both of them have its own features and advantages. But if we but these solutions on a table which has different criterias (a deep note: we created the table with the help of our user testing), we can understand that the first solution, the service kits, needs less time to implement and also BYHOURS is more capable to implement this solution. Because the solution is not very far away from the existing business model. BYHOURS has already had background and tools to implement it like hotel partnerships, technology. Also in this solution there is no need to sell totally a new idea. The users are aware of something, they just upgrade their bookings but they also feel they upgrade their experiences. It is an upsell concept.

On the other side, the nano services needs more time to implement, and the capability of BYHOURS is less than the first solution to implement it. Because for this one, BYHOURS needs to use a new technology for fast check-in/check-out processes. And also they really need to work out with hotels to implement the solution. And for this time there is need to sell a new approach to users. But it is important to indicate that also the nano services has a significant detail. It creates a really new path in the hotel industry. It surely adds more on the most important feature of BYHOURS. The flexibility will be on top with nano services.

Finally, there are two solutions with different specialties. First, ‘the service kits’ with its high feasibility and profitability features. And second, ‘the nano services’ with its more innovative approach to the market and maximum flexibility.