Serviced apartment booking specialist SilverDoor has seen rates rise by 15 per cent in the EMEA (Europe, Middle East and Africa) region so far this year compared with the same period in 2022.
But the company’s latest market update shows that rates in the region are now 13 per cent lower than during the peak periods of demand last year.
“We’ve essentially seen a waning of the unprecedented demand that followed the pandemic but cost of living factors have ensured rates are still higher than the same period last year,” said SilverDoor in its report.
“Notably, we are seeing a distinct seasonality being reintroduced to rates. While rates have reduced significantly in London, Dublin, Berlin and Amsterdam, cities like Stockholm and Milan continue to see strong demand relative to supply.”
SilverDoor said that corporates were now beginning to book further ahead to secure lower rates and have access to a wider choice of apartments.
“While published rates are punchy across the board as providers seek growth on 2022’s yield with rising costs of operating, they are definitely levelling off in EMEA and the Americas, although APAC (Asia Pacific) continues to command the strongest rates we have seen for the region" added Serena Dines, SilverDoor’s group head of revenue.
“The cutbacks we are seeing in the tech industry are representative of financial caution across the business travel sector. Travel volumes are reduced and some corporates are being stricter on what trips they will allow.”
The report found that there were now fewer but longer trips, with average length of stay rising by 12 per cent year-on-year from 41 to 46 nights. An increase in enquiries about pet-friendly accommodation is also being attributed to the trend of combining multiple trips into one.