In this series, we will extract some of the data we published in our 2019 Meeting Room White Paper and dig deeper on our analysis.
Meeting Rooms are an indispensable amenity in any coworking space for three main reasons:
- Members need them for their own meeting requirements, both planned and sometimes impromptu
- Meeting rooms are an important revenue center, and a very profitable one at that
- Hosting meetings in your coworking space draws very desirable traffic that may convert into membership
What’s important to full-time members is that the meeting rooms are there and accessible when they need to host a meeting that cannot be accommodated in their office. Everyone likes “free,” but the availability of the rooms are more important than the price.
This is important to realize because the opportunity to monetize the meeting rooms outside of your membership is significant.
If you have a coworking space with 50 to 200 members, maintaining two meeting rooms and one day office is the bare minimum to provide the level of service that shared office space members expect. Many centers, particularly those with a healthy virtual office business, will have 5 and sometimes 10 or more meeting rooms and day offices.
The average number of meeting rooms in the U.S. is 3.5 per location, with 25% at 4 meeting rooms or more. As a reminder, these statistics come from analyzing the CloudVO inventory of 2,500 meeting rooms published on CloudVO.com, out of 700 partners worldwide with two-thirds of them in the United States. In some cases, operators do not publish all their inventory for online bookings which may slightly under estimate the true inventory numbers.
Monetizing Meeting Rooms is Too Important to Ignore
Whereas some free access to meeting rooms for full-time members can be a good idea, the opportunity cost associated with “free” is very high and the ability to monetize the rooms to outside visitors is too important to ignore. A better idea is to make them available to the public at large, and market them via resellers such as CloudVO as well as via your own local marketing efforts.
Pacific Workplaces estimates that the revenue generated by its meeting rooms (over 100 rooms in 20 locations) is 125% to 300% what it could generate by converting the rooms as full-time offices instead. The larger the room, the bigger the opportunity cost. Hence, it pays to have an aggressive meeting room profit center strategy as many CloudVO partners have found.
Over the last 10 years, we have seen a drastic reduction in ‘free’ meeting room hours provided to full-time members by operators, and a significant increase in meeting rooms available online via resellers such as CloudVO, Liquidspace, or DaVinci.
Use your Vacant Offices as Temporary Day Offices
Unlike WeWork, Regus has a healthy Virtual Office and Meeting Room business. We undertook a comprehensive comparison of their meeting room inventory, available for online bookings, with that of independent operators. It is interesting to see that Regus tends to maintain fewer larger- sized meeting rooms than independent operators, but many more rooms classified as “day offices.” This is because Regus will systematically list vacant offices as “day offices” and make them available to Virtual Office clients and “off-the-street” bookings.
They can also work as overflow for full-time members when the dedicated meeting rooms are full. We think this approach is a best practice that independent operators should emulate. Many IT platforms such as Yardi KUBE, Essensys, or DeskWorks will support the automatic listing of a vacant office as a free office, adding to your inventory of rooms that can be monetized as a meeting room until it’s leased again to a full-time client. The CloudVO platform integrates with many of the prevalent IT coworking platforms, which will enable us to market the available slots in your meeting room calendar and give end-users a seamless experience.
If you need assistance on how to monetize your vacant offices as day offices until they are leased to a full-time member again, do not hesitate to reach out to us.