As the hotel industry evolves to meet the needs of modern travelers, an old business model is quietly re-surfacing: hourly rate bookings. Once dismissed due to their association with illicit activity, these offerings are returning under the banner of flexibility, productivity, and convenience. But while the business opportunity is clear, the risks are even clearer. Flexibility without ethical oversight is a liability waiting to happen.
Why hourly rates are gaining ground
There is no shortage of legitimate reasons for short-term hotel stays. Business travelers often need a quiet space between meetings. Remote workers seek out comfortable, private environments to get things done. Some guests want access to spa services, pools, or daytime amenities without staying overnight. Platforms like Dayuse.com, HotelsByDay, ByHours, RoomForDay, and Goibibo have emerged to meet this growing demand. These services allow users to book rooms for two to eight hours, often with flexible check-in options and luxury amenities. In many cases, these bookings can generate incremental revenue, boost occupancy during slow periods, and appeal to the modern guest. But as the volume of hourly bookings rises, so too does the need for industry-wide accountability.
The hidden cost of convenience
While the surface-level logic for hourly bookings is sound, the reality beneath it is far more troubling. According to recent data, more than 81 percent of active sex trafficking cases in the United States involve hotels. Even more alarming, over 10 percent of sexual exploitation reports to the National Human Trafficking Hotline are directly tied to hotel properties. These figures are not
speculative-they are current, well-documented, and sobering. They highlight a disturbing overlap between hotel operations and criminal exploitation, especially when booking systems allow anonymity, high turnover, and minimal oversight. If the resurgence of hourly bookings continues without rigorous safeguards, these numbers will only escalate.
Regulators are paying attention
In response to rising concerns, cities like Louisville have enacted complete bans on hourly hotel rentals. Others have mandated minimum twelve-hour stays to discourage misuse. At the federal level, the Hotel Fees Transparency Act of 2024 has introduced new compliance measures related to pricing and disclosure. The takeaway is simple: if the industry does not regulate itself, regulators will step in and do it for us.
Technology Is a double-edged sword
The rapid growth of API-based distribution has enabled hotels to connect with guests more efficiently than ever before. But this same technology can be exploited when third-party platforms push hotel inventory into hourly channels without full transparency. Without appropriate controls in place, hotels may unknowingly become enablers of illicit activity. However, the same digital tools that present a risk can also be part of the solution. Identity verification technologies-such as biometric scanning, facial recognition, and real-time document validation-can prevent bad actors from hiding behind anonymity. Artificial intelligence can help monitor behavioral patterns and flag suspicious activity, while blockchain tools can create tamper-proof booking logs that ensure accountability throughout the transaction lifecycle.
Building a framework for ethical hourly bookings
Hotels that want to explore hourly or day-use offerings must commit to a foundation of safety and oversight. This includes implementing multi-factor guest verification, monitoring bookings in real-time, and training staff to recognise signs of human trafficking. Properties should establish crisis response protocols and maintain open lines of communication with local law enforcement. Technology stacks must also be upgraded to support these efforts. Cloud-based monitoring systems, centralised identity dashboards, and IoT-enabled access controls can all play a role in closing the gaps. Just as importantly, hotels need to regularly audit their third-party distribution relationships to ensure that inventory is not being pushed into risk-prone environments without their knowledge.
Leading the charge with industry partners
The hospitality sector is not alone in this effort. The American Hotel & Lodging Association has made a strong commitment through its “No Room for Trafficking” campaign. And now, the Safe House Project https://simplyreporthospitality.com/ has introduced the Exploitation Aware Certified Hospitality Programme, a first-of-its-kind certification focused on operational readiness and exploitation prevention. This initiative provides on-demand training for hotel staff, clear exploitation response protocols, and public-facing certification that demonstrates a property’s commitment to guest safety and corporate integrity.
This Is our crossroads moment
Hourly rate bookings are not going away, and they should not. The demand is real. The business case is solid. But innovation without guardrails will always invite risk. As hoteliers, technologists, and leaders in hospitality, we must ensure that our distribution strategies are as ethical as they are efficient. This is our opportunity to lead with intention. Let us protect our guests. Let us protect our brands. Let us protect our people. If you are ready to join the movement for ethical innovation in hospitality, I invite you to connect with me on LinkedIn or reach out directly to continue the conversation.
