Demand continues to grow for serviced apartments in 2017

Businesses continue to increase their use of serviced apartments, according to a new survey by the Business Travel Show. Value for money became the top reason why businesses use serviced apartments.

Business traveller using Ipad
One fifth of corporate travel buyers increased their use of serviced apartment suppliers in 2017. This is according to a recent poll carried out by the Business Travel Show in collaboration with Association of Serviced Apartment Providers (ASAP) ahead of the ASAP Convention on 6-7 December.A similar number of buyers directed more spend to budget hotels and over a third (37 per cent) to mid-range hotels. Contrastingly, 28 per cent used five star hotels less compared to just 12 per cent on serviced apartments.

Q1. When compared to the last 12 months, how has your use of the following suppliers changed?

When asked why they book serviced apartments, 57 per cent of respondents said it was because they provide value for money. This was followed by convenience, flexibility, extra space and long-term suitability.While the top five reasons remained the same as last year, their order has changed, with convenience falling from the number one spot. 
Serviced apartments question 1

Q2. Why do you book serviced apartments?

Of those buyers who do incorporate serviced apartments in their programmes, more are allocating a higher percentage of their budget towards them. For example, in 2016, 7 per cent of buyers spent between 11 and 25 per cent of their budgets on serviced accommodation. This year, that rose to 13 per cent, while the number of buyers spending between 26 and 50 per cent remained consistent.
Serviced apartments table question 2

Q3. What percentage of your accommodation budget is spent on serviced apartments? (Answered only by those buyers who use them)

Serviced apartments table question 3
With 42 per cent of buyers not using any serviced accommodation suppliers, however, and 38 per cent still vetoing sharing economy providers (albeit a massive drop from 91 per cent last year), the poll of 243 buyers show there is still a way to go for alternative accommodation providers to be an automatic choice for travel buyers.

Business traveller demographic continues to evolve

David Chapple, event director, Business Travel Show, said, “Our research is great news for the serviced apartment community and is testament to the work ASAP has done in raising awareness of, and building trust in, the industry and its suppliers.“It’s also an honest reflection of the state of the market. For the last two years, our annual survey of travel buyers has shown that the number one challenge facing them is cutting costs while maintaining quality and value for money. With this in mind, it’s of no surprise that more buyers are looking to alternative and budget accommodation providers and incorporating these in their travel programmes alongside more traditional four and five-star business hotels.“Of course, the demographic of travellers is also changing with younger executives enjoying the flexibility and convenience offered by alternative accommodation – something they have become used to as leisure travellers.“We have understood and – to a degree – preempted this shift at the Business Travel Show, and accommodation providers from all sides of the market can be found on the show floor for buyers to talk to, including Melia, IHG, Best Western, Airbnb, NH Hotels, Premier Inn and the serviced apartment providers in the ASAP Hub.”
Related stories:

Serviced apartment supply streches to reach growing demand

James Foice, chief executive of the Association of Serviced Apartment Providers, added, “It’s absolutely fantastic to see that 20 per cent, of corporate buyers have increased their use of serviced apartments this year. “The popularity of our serviced apartment product has never been higher with the significant increase in supply this year – more than 2,000 new serviced apartment units have opened right across the UK in 2017. 17 per cent growth in supply is forecast by 2020 so this trend is all set to continue.“More corporate and leisure travellers prefer this more flexible way to stay offering a bit more space to live, work, sleep and eat. “It’s particularly interesting to see ‘value for money’ coming out as the top reason why corporates are using serviced apartments.“We find more and more companies book two-bedroom/two-bathroom apartments and colleagues will share the apartment, making it a more cost-effective choice as well as giving employees working away from home some companionship. “Our ASAP Quality Accreditation Programme – under which operators are assessed by the Association’s accreditation service, ISAAP, to ensure they fulfil all their duty of care, compliance and health and safety requirements – is also proving to be a very important additional benefit to corporates.  Buyers will find the ASAP Hub at the Business Travel Show, including Acomodeo, BBF, City Apartments, Fountain Court Apartments, Frasers Hospitality, Marlin Apartments, The Harrington Collection, Roomspace and StayCity. Other serviced apartment providers at the show include Go Native, The Serviced Apartment Company, BridgeStreet Global Hospitality, Pine UK Holdings, DBA and Oakwood Worldwide.The ASAP Convention takes place in London from 6-7 December. Online visitor registration is now open for the Business Travel Show at http://www.businesstravelshow.com/register For related news and features, visit our Serviced Apartments section.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Access hundreds of global services and suppliers in our Online DirectoryClick to get to the Relocate Global Online Directory  

Related Articles