Capsule Hotels: The Future of Traveling?
Capsule or ‘pod’ hotels were developed in Japan as a way for budget travellers to have somewhere safe and affordable to sleep. Over the years, capsule hotels have remained popular, but the experience of staying in one has dramatically changed, with pod hoteliers competing to provide guests with the most stylish and luxurious experience. capsule hotel
Resting capsules are arranged in two layers down the hallway, each one shaped like the cockpit of an airplane. Many people believe that the only thing you can do at a capsule hotel is sleep, but in reality, some of them feature luxurious spas, saunas, and living rooms that rival certain business hotels in terms of amenities.
Capsule hotels are typically located in major cities and transportation hubs, and they offer a variety of amenities, such as luggage storage, Wi-Fi, and shared bathrooms and showers. Some capsule hotels also have common areas where guests can relax and socialize.
In recent years, value-adding services such as ladies-only floors, sophisticated business lounges, tablets, and manga rental services have made capsule hotels increasingly attractive at a fast pace.
The capsule hotel market size is expected to grow by USD 49.14 million from 2021 to 2026, at a CAGR of 9.86% as per the latest market forecast report by Technavio. Also, the market is expected to record a 9.08% Y-O-Y growth rate in 2022. The capsule hotel market is fragmented, and the vendors are deploying growth strategies such as better amenities, services, and costs, and offering discounts to compete in the market.
Here are some of the pros and cons of staying in a capsule hotel:
Pros:
- Affordable: Capsule hotels are one of the most affordable types of accommodation available.
- Convenient: They are often located in convenient locations, close to public transportation.
- Safe: Capsule hotels are generally very safe, as they have security measures in place.
- Clean: Capsule hotels are typically clean and well-maintained.
- Unique experience: Staying in a capsule hotel can be a unique and fun experience.
Cons:
- Small: Capsule rooms are very small, and there is not much space for personal belongings.
- Private: There is little to no privacy in a capsule hotel, as the capsules are not soundproof.
- Basic: Capsule hotels offer only basic amenities, such as a bed, a light, and an outlet.
- Shared facilities: Guests must share bathrooms and showers with other guests.
Overall, capsule hotels can be a great option for budget-conscious travelers or those who simply need a place to sleep for a night. However, they are not for everyone, and it is important to weigh the pros and cons before making a decision.
Capsule Hotel Market: Major Driver
The growing disposable income of travelers is one of the key drivers propelling the capsule hotel market. For instance, from 2000 to 2020, the disposable per capita income in China increased by around 700%. In Japan, households, on average, spend 22% of their gross-adjusted disposable income on leisure activities. The increasing disposable income improves the standard of living of people, which enables them to spend their income on travel activities.
Key Capsule Hotel Market Trend
- The growth of the global travel and tourism industry is one of the key capsule hotel market trends fueling market growth.
- In the last few decades, the tourism industry has witnessed significant growth, especially in regions such as Europe, Southeast Asia, and North America. While Brazil has traditionally been a country with the strongest tourism industry in South America,
- Air passenger traffic has increased due to the growth of the tourism industry. This growth in air passenger traffic is also expected to be fueled by the growing affluence of the middle-class population in emerging markets, such as China and India.
- Global investments in airport infrastructure are expected to increase significantly during the forecast period. For instance, China currently plans to have 400 airports operational by 2035. The country plans to construct an additional 160 airports over the next 14 years. These factors will promote the growth of the tourism industry in the country, which, in turn, will have a positive impact on the capsule hotel market during the forecast period.
Here are the world’s top 6 capsule hotels, as voted by international travellers
Dream Lodge, Lavender, Singapore
The Dream Lodge is decorated with inspiring quotes, and the sleeping pods mean that it’s possible to share a room without being disturbed by guests on different schedules. But it’s the lodge’s fantastic connections to the Lavender MRT airport that make it popular with both business and leisure travellers.
Nonze Hostel, Pattaya, Thailand
Only a short walk from the Central Festival Pattaya Beach, the Nonze Hostel’s sleeping pods all feature either rustic, modern, or vintage designs. Guests have a choice between double or single capsules, and the hostel has a communal seating area and a rooftop restaurant overlooking the sea.
The Pod Sydney, Sydney, Australia
Every room at The Pod Sydney has a king-size bed, a reading light, charging points, and air conditioning, making it ideal for guests not yet used to those scorching Australian summers. Guests can mingle with other travellers in The Pod’s shared kitchen and dining facilities.
Ease Single Inn, Taichung, Taiwan
A short walk from the National Taiwan Museum of Fine Arts, the Ease Single Inn is located right in the centre of Taichung in Taiwan. It has a 24-hour front desk, free toiletries (not usually offered at capsule hotels), lockers big enough to fit two large suitcases, and a complimentary breakfast.
The Prime Pod Kyoto, Kyoto, Japan
Despite opening in February 2017, The Prime Pod is already one of the top 10 highest-reviewed capsule hotels on Booking.com. The Prime Pod makes a point of providing all of the luxuries of traditional hotels, including flat-screen TV in every pod, free toiletries, robes, slippers, security boxes
UZ Hostel, Taipei, Taiwan
The UZ Hostel is an example of how Taiwan’s hoteliers are taking capsule hotels to the next level. Founded by two friends, the UZ was designed to help travellers with similar hobbies and enthusiasms meet, and it’s used by a variety of Meetup groups to organise social events.
Best of Europe Capsule hotels
CityHub Amsterdam, Netherlands
CityHub Amsterdam offers social accommodation in Amsterdam. Guests can make their own drinks in the on-site self-service bar. With a mobile app, guests can control their room and chat with the CityHosts. Guests will stay in a private sleeping cabin with a king-size double bed.
Capsule Hotel Lucerne, Switzerland
Capsule hotel Lucerne is located in the pleasant Old Town district of Luzern, Switzerland. It is ideal for business people and digital nomads. For those planning to stay in a capsule, they will have access to WiFi and a shared kitchen and lounge. The hotel offers rooms equipped with a wardrobe, a dishwasher, a microwave, and a coffee machine.
Bed and Boarding Benbo, Napoli, Italy
Bed and Boarding Benbo has a convenient location close to Capodichino International Airport in Naples, Italy. It provides just what a traveler needs— an accessible, cheap, and comfortable place for relaxation. Plus, its location makes it ideal for passengers waiting for their flight.
Key Capsule Hotel Market Challenge
- The negative impacts of the pandemic is one of the key factors challenging the capsule hotel market growth.
- The governments of countries worldwide imposed pandemic-induced restrictions and nationwide lockdowns in early 2020 to contain the spread of the disease. There were cancelations of flights and a reduction in domestic and outbound tourists in H1 2020 globally.
- As per the data provided by Eurostat, in April 2020, Europe witnessed a decline in domestic tourism by 93% as compared with the same month of the previous year.
- In MEA, most domestic and international airlines were forced to cancel their flights due to strict quarantine measures and lack of passengers. Regional airlines such as Dubai-based Emirates Airlines, Abu Dhabi-based Etihad Airways, and Qatar Airways experienced significant losses in 2020.
- According to the data provided by the Department of Tourism of Chile, in March 2020, tourist arrivals in Chile dropped by 63% compared with the same month the previous year. In Colombia, travel agencies witnessed a decline in sales of 70% in 2020. Such a decline in tourist arrivals will challenge the capsule hotel market growth during the forecast period.
The capsule hotel market report also offers information on several market vendors, including Book and Bed Tokyo, Container Hotel Group, CVS Bay Area Inc., De Bedstee Capsules Hotel B.V., Dream Lodge, First Cabin HD Co. Ltd., Hostels Hub Point S.L., Inbox Capsule Hotel, Koyasan guesthouse Kokuu, Nadeshiko Hotel, Nonze Hostel, Pangea Pod Hotel, RB Hospitality Pte Ltd., Riccarton Capsule Hotel, TAKE Hostel Conil, The Bed KLCC, The Capsule Hotel, The Pod Sydney, Time Capsule Retreat, Tubohotel, and Urban Pod Pvt. Ltd. among others.
