Travel Management Companies (TMCs) and Relocation Management Companies (RMCs) anticipate extended durations for project-based assignments, corporate travel, and employee relocations.
LONDON – There is a shifting pattern in corporate travel management, where extended stay accommodations are no longer limited to relocation scenarios. The Apartment Network’s (TAN) recent Education Session “Extended Stay Accommodations: Navigating this crowded space for success” held during the GBTA Dallas Convention in August, was well-timed and well received.
In a recent survey, 19% of participants forecasted an increase in requests for serviced apartments over hotels. We expect this figure to increase in 2024. As companies deal with increased employee mobility and the demand for extended stay accommodations, there will be an impact on travel policies and strategies, bringing Travel Management closer to Mobility when it comes to providing extended stay solutions.
“The lines between corporate travel and mobility are blurring when it comes to extended stay accommodations, and it is vital for travel managers to adapt for this trend. It’s important to consider that the processes and timings involved in booking extended stay are different to booking short-term stays. There are more touchpoints, more human intervention, it takes longer – and despite advances in technology, human involvement in extended stay booking is unlikely to change.” remarked Marcos Isaac, CEO for The Apartment Network.
The GBTA audience resonated with the view that extended stays and alternative accommodation are now seen as a versatile solution for business travel, project teams, crew members, and remote workers. Both Travel Management Companies (TMCs) and Relocation Management Companies (RMCs) predict longer stays in project and assignment work, business travel, and relocation. Being able to track duty of care coverage, sustainability, and DEI with extended stay accommodations, has further elevated the popularity of these types of bookings.
This level of interest and activity has led to a crowded marketplace with many new providers of extended stay solutions creating uncertainty in decision-making. With 47% of corporates now using specialist extended stay booking agents to book accommodation, choosing who to work with is an important procurement decision.
Through recent analysis of its own data, The Apartment Network (TAN) reports average length of stay is up 10% in H2 2023 compared to H1 2022 and rate of enquiry is up 40%, with increased activity in the US, Europe, and Asia PAC. In the last 24 months, TAN has grown its property inventory by over 50% to meet this increase in inquiries and will continue to look for suitable accommodation to meet the growing demands of its global client base.
Marcos was joined on stage at GBTA Dallas by Megin Dressler North America Travel Manager for Keller and Ana Prado, Brazil Fleet & Travel Sr Buyer, Indirect Procurement for Syngenta. Group.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.