The serviced apartment sector continues to grow its share of corporate accommodation spend, according to the Global Serviced Apartment Industry Report (GSAIR) 2022, released today by the Travel Information Network and Habicus Group, the parent company of serviced apartment agent SilverDoor.
The report, which included a survey of 6,000 corporates, 2,000 serviced apartment operators and 1,800 agents as well as more than 70 interviews with industry professionals, revealed that serviced apartment usage is on the rise.
Fifteen per cent of corporates reported using serviced apartments more for business travel and shorter (1-28 night) stays since 2021. Fifty-two per cent of corporates and 60 per cent of TMCs also reported an increase in their use of serviced apartments for relocation purposes since 2020.
Twenty-three per cent of businesses surveyed said they now have formal agreements with serviced apartment or home stay brands, and nine per cent of companies have added non-hotel accommodation options to their travel programmes since the Covid-19 pandemic.
According to the report, the main factors for choosing serviced apartments over hotels are traveller preference, total cost of stay and traveller wellbeing.
Serviced apartments saw business increase during the pandemic because, as stated in the report, they offered a safer option for travellers, dedicated and secure workplaces and the ability to cook and eat privately. Sixty-eight per cent of operators said they took market share from hotels in some or all locations, however rates took a hit, with the average daily rate 42 per cent of published rates.
Business trips in 2022, while fewer in number, are expected to be longer, which bodes well for serviced apartments. According to the report, 39 per cent of business trips in 2021 were eight nights or more, and the proportion of 7–14-night business trips in 2021 was double that of 2019 – a trend that is expected to continue.
Global reach of the serviced apartment sector also continues to expand. In 2007, 77 per cent of global supply was in the US, compared with just 52 per cent today. However, supply shortages in key locations and inconsistent quality in existing supply remain the biggest hurdles to the sector claiming a greater share of corporate accommodation spend.
This year’s ninth edition of the report is the first since The Apartment Service (TAS) was acquired by Habicus Group in September 2021, and was a collaborative effort between TAS, the Travel Information Network and SilverDoor Apartments.
Habicus Group CEO, Stuart Winstone, said: “We have exciting plans for GSAIR and look forward to ensuring the report continues to meet the needs of clients and partners alike.”