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September 2022, Virtual
September 29 2022, Virtual
Serviced apartment usage in corporate travel programmes is continuing to increase, according to the annual study of the sector from The Apartment Service.
The Global Serviced Apartments Industry report showed 47 per cent of buyers are increasing their usage of serviced apartments compared to last year.
However, the report showed despite serviced apartment usage growing adoption rates are leveling off and many corporate programmes that include serviced apartments are now maturing.
Supply is continuing to expand at a “steady and consistent” rate across all global regions, driven by rising institutional and private investment.
Growth in supply is up 10.5 per cent to 826,759 with the sector expected to hit 1 million units by 2017/18. Supply has doubled over the past eight years.
The study found the arrival of disruptor products such as Airbnb has created a double-edged sword for the sector.
It said that although they have created mainstream awareness of non-hotel accommodation alternatives, they also represent a fragmented aspect of the serviced apartment product.
As a result the sector has to work harder to explain what customers should expect from their serviced apartment offerings.
The Apartment Service CEO Charlie McCrow said: “Sector expansion has brought a proliferation of new brands by operators who are personalising their offerings to different niche audiences though few of these enjoy widespread customer recognition so far. In addition, there could also be imminent brand consolidation, as Hilton have announced with their extended stay portfolio.”