Over half of corporates are using serviced apartments for business travel, with 40% of corporates allocating up to 20% of accommodation budget to extended stay solutions.
LONDON – The Apartment Service (TAS Global) has published the latest edition of its award-winning Global Serviced Apartments Industry Report (GSAIR), compiled by the Travel Intelligence Network (TIN).
GSAIR estimates there are now in excess of 1,022,984 serviced apartments worldwide (with a further 73,563 corporate housing units) in more than 13,164 locations. This compares to 826,759 apartments (with 70,300 corporate housing units) in 10,777 locations two years ago. These figures represent a significant increase in available inventory; 23.7% growth compared to 10.5% growth as published in the 6th edition.
This 7th edition, compiled from both primary and secondary global sources, has comment and debate from over 40 industry buyers, suppliers and consultants. It also features a series of case studies detailing how corporates have successfully adopted serviced apartments for business travel, assignment working and relocation requirements.
Assessment of the results of the latest GSAIR survey of 6,000 corporates, 2,000 serviced apartment operators and over 1,800 agents show the following;
- Over half of corporates are using serviced apartments for business travel, with 40% of corporates allocating up to 20% of accommodation budget to extended stay solutions
- Serviced apartments have found their niche as a 'stand-alone' category and are featuring less in the standardised annual hotel RFP's
- 37% of corporate companies are now mandating the use of a specialist agency channel (similar to TAS Global), alongside an RMC or TMC for their apartment bookings.
- 47% of corporates allow their travellers to independently select/book their own long stay accommodation
- Corporates are continuing to leverage long-stay savings of between 17% and 29% versus their hotel programme spend
Charlie McCrow, CEO of The Apartment Service says 'The growth of supply of the global serviced apartment industry continues to increase at speed and as predicted in the last edition of GSAIR. There is still huge potential for growth and new opportunities in many destinations.'
Jo Layton, MD Group Commercial Sales adds "As the sector continues to mature and grow, the key requirements of compliance, transparency, analysis and cost effectiveness – added to ease of booking – are becoming even more apparent. Open debate and continued communication with all stakeholders is important to drive the continued development of this vibrant sector forward."
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.