For the majority of
travel managers, serviced apartments account for less than 10 per cent of their
overall accommodation bookings, yet (for longer stays, especially) they can
work out to be a more flexible option for travellers and a more cost effective
solution for organisations.
There are a number of reasons why the use of serviced apartment accommodation is low compared to hotels. The four most notable are poor supply, poor awareness, poor distribution and a lack of industry standard.
In Europe, London
is the most mature serviced apartment market. However, with just 8,000 units in
total, equating to 1.2 per thousand travellers (New York has 5.2) it is small
in comparison globally. As demand grows, however, openings are becoming more
frequent and, in 2012, thanks in part to the Olympic Games, there was a surge of
building launches. Expansion continued throughout 2013 and 2014 and is forecast
to grow by an additional four per cent by the end of 2015.
Compared
to hotels, awareness of serviced apartments continues to be low among travel
managers and travellers – both corporate and leisure. Many people don’t know
they exist or understand what they are, what they offer and how they differ to
hotels. It doesn’t help, either, that they operate under different names
throughout the world, such as aparthotels, corporate housing, extended stay
residences and suites.
When it comes to distribution, serviced
apartments really lag behind that of hotels and are only just starting to
appear on the likes of booking.com, however, SACO is notable for making inroads into the GDS, which is
progress.
In the
UK, ASAP – the Association of Serviced Apartment Providers – is credited with
raising awareness of serviced apartments on behalf of its members. In
September, it also unveiled plans to promote its QualityAssurance (QA) programme beyond members and direct to customers. The QA
programme will finally provide the serviced apartment sector with an official
set of standards – similar to the star rating used by hotels – which will help
customers to book with confidence and provide a further boost for supplier
awareness.
Despite all this, demand for serviced apartments is increasing, and with
good reason. They generally offer more space than hotels. According to ASAP,
serviced apartments are, on average, 30 per cent bigger than an equivalent
standard of hotel room. They are cost-effective, too, as there are no hidden
extras and longer stays often qualify for a discount. Featuring fully fitted
kitchens and, often, separate lounge areas, they also offer guests increased
flexibility to spend their time as they wish.
Serviced apartments may not always be the right solution
for every accommodation requirement. But, next time you’re travel programme is
up for a rethink, it’s definitely worth bearing them in mind as a valid – and
increasingly high quality – alternative for some of your travellers.
In comparison to hotels I feel serviced apartments are the better options for corporate stay. Still there importance is very less known. People should be make aware about the serviced apartments.
ReplyDeleteConvenient access from any apartment to famous shopping malls, restaurants are must. I'd expect amenities include fully equipped kitchens, grocery delivery service, a dedicated office area, a large LCD TV, and high-speed Internet access.
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