RECENT DEVELOPMENTS ON STAYCATIONS IN NIGERIA

Nigeria's staycation industry is experiencing significant growth, driven by factors like new hotel developments, increasing demand for short-term stays, cost-effectiveness, and the desire to explore local attractions. In recent times, we see most hotels adapting to this trend by offering attractive packages, incorporating technology for improved guest experiences, and focusing on immersive experiences. Additionally, there's a growing demand for event-driven and group travel packages, as well as packages tailored to the Nigerian diaspora.

We took time out to scout the recent developments surrounding staycations in Nigeria, where domestic tourism continues to outnumber international arrivals in hotels:

Hotel Industry Trends

- Growth in Hotel Development: Despite challenges, Nigeria's hotel development pipeline is robust, with 125 new hotels and 21,000 rooms expected to open in the coming years.

- Technology Integration: Hotels are leveraging technology to improve guest experiences, reduce costs, and streamline operations, including mobile apps for booking, check-in/out, and in-room tech like smart TVs, and AI-powered chatbots.

- Sustainability: Prioritizing sustainability practices, such as reducing waste, conserving water, and using renewable energy sources, is crucial for the industry's growth and success.

- Event-Driven Packages: Hotels are adapting to the trend of travelers planning trips around events and holidays, offering event-specific packages and promotions.

- Group Travel Packages: Recognizing the rise of group travel, hotels are tailoring packages, services, and pricing to appeal to families, friends, and those seeking shared experiences.

- Diaspora-Focused Packages: The increasing number of Nigerian diaspora visitors is driving demand for quality accommodations and activities, leading hotels to develop specific packages for this segment.

Popular Destinations

- Lagos: A commercial hub with top hotel destinations like Eko Hotels & Suites and Radisson Blu Anchorage, with 67 extended stay hotels.

- Abuja: A popular destination for business travelers, with 59 extended stay hotels.

- Port Harcourt: A growing city with 184 hotels, including 13 extended stay hotels.

- Lekki: A city with 23 extended stay hotels, known for its high average rating of 8.20.

Pricing and Ratings

- Average Price: The average price for extended stay hotels in Nigeria is around $75-87 per night, with prices peaking in January at $87.

- Best Month to Visit: July is the best month to book an extended stay hotel, with an average rating of 7.63, while May is the cheapest month, with prices averaging $79.

- Ratings: The average rating for extended stay hotels in Nigeria is 7.07, based on 2,347 reviews, with friends being the most satisfied travelers, rating 8.61 on average.

Government Initiatives

- Visa Policy: The Nigerian government is working on a more accessible e-visa application channel for short visits.

- Airport Upgrades: The upgrade of Ibadan airport is expected to connect Oyo to the global market.

- Tourism Contribution: Tourism is estimated to contribute N12.3 trillion to the economy by 2032, with 2.6 million jobs expected to be created.

Challenges and Opportunities

- Operating Costs: Rising operating costs, soaring inflation, and political risks are concerns for hoteliers, potentially impacting growth prospects.

- Diesel Prices: Sky-high diesel prices are affecting hotel operations, with some considering rate increases or converting to real estate.

- Opportunities for Growth: The staycation industry in Nigeria has opportunities for growth, driven by increasing demand for short-term stays and new hotel developments.

Ultimately, the staycation industry in Nigeria is experiencing significant growth, driven by new hotel developments and increasing demand for short-term stays. With government initiatives and opportunities for growth, the industry is expected to continue to thrive. However, challenges such as rising operating costs and diesel prices need to be addressed to ensure sustainable growth.