Rates for extended stay accommodation may soon increase as operators feel the pinch of rising energy prices, according to research by serviced accommodation agency, Situ.
In response to a global survey of 500 accommodation partners, 75 per cent stated rates are at risk of increasing by between 10 per cent and 25 per cent due to rising energy costs.
To mitigate costs, 70 per cent of respondents said they preferred to implement a rate increase rather than a possible energy surcharge.
Additionally, 77 per cent said they plan to implement ‘awareness programmes’ to encourage guests to be ‘mindful and efficient’ with their energy usage. This includes friendly reminders at check in, signage within the accommodation and controlled energy systems such as air conditioning and heating.
When asked how best to tackle the challenge, extended stay operators suggested a collective negotiation of rates with energy providers, seeking government support in terms of VAT reductions, tax breaks and energy caps for businesses of all sizes.
Phil Stapleton, managing director of Situ, said transparency regarding rates and charges is “important”, and that the company will “continue to negotiate the best rates possible for customers".
He added: “Although increased accommodation costs are a possibility in 2023, Situ is furthering our commitment to our operations both through sustainable and cost-controlled programmes throughout this year and into the future.”
Additional challenges faced by accommodation operators include a lack of labour and resources (cited by 50 per cent of respondents), currency fluctuations (particularly the value of the UK pound against the US dollar), legislation around short-term lets, and the need to assist staff with the cost of living.