Hoteling

Hoteling is a term used to describe two distinct concepts in economics and office management. In economics, it refers to Hotelling's location model of spatial competition, developed by Harold Hotelling in 1929. In workplace management, hoteling denotes a desk-sharing system in which employees do not have permanently assigned workstations but reserve desks or workspaces as needed.

Hotelling's location model imagines a linear marketplace where customers are uniformly distributed along a line, and firms choose locations to maximize their share of demand. The model highlights strategic positioning and leads to the principle of minimal differentiation, where competitors locate near each other to capture adjacent customers. Variants include the linear city model and the dispersion of product characteristics along a spectrum. The theory has been influential in industrial organization, regional planning, and transport economics. Its assumptions—one-dimensional markets, fixed demand, and simple travel costs—have drawn criticism and led to numerous extensions that address more complex geographies and market dynamics.

In office management, hoteling enables flexible use of real estate by allowing staff to choose a workspace when they come to the office. Desks are not assigned permanently; a computerized booking system records availability and reservations. This approach can reduce occupied square footage and real estate costs, support remote or hybrid work patterns, and enable collaborative or project-based seating. Implementations often require standardized furniture, secure access, endpoint devices, and robust IT support. Critics point to potential privacy concerns, the need for reliable reservation practices, and the risk that underused desks waste resources if occupancy is low or erratic.

Hoteling remains widely used in large organizations and government agencies, particularly where space is constrained or mobility is high. It is closely related to hot desking and activity-based working.