ONE IN FIVE BUYERS INCREASED SERVICED APARTMENT USE IN 2017

The serviced apartment industry has gone from strength to strength in recent years for a whole host of reasons: its trade ASAP has done sterling work in raising the profile of the sector among business travel buyers and worked hard to introduce a recognised quality and standards charters, travellers are more open to use hotel alternatives thanks to the rise and rise of Airbnb in the leisure sector, and tightened budgets are thankful for a budget-friendly option. 

According to Business Travel Show's recent survey, their use among 20 per cent of business travel buyers increased again in the last 12 months alone. A similar number of buyers directed more spend to budget hotels and over a third (37 per cent) to mid-range hotels. Contrastingly, 28 per cent used five star hotels less compared to just 12 per cent on serviced apartments.

Q1. When compared to the last 12 months, how has your use of the following suppliers changed?

	More				Same		Less		Don’t use
	2017	2016	2015	2014	2017	2016	2017	2016	2017	2016
Five star hotels	13				31	41	28		28
Sharing economy	18				36		8		38	91
Serviced apartments	20	39	19	13	25	75	12	4	42	4
Mid-range hotels	37		87		47		9		7
Budget hotels	22	17	60		37	77	8	1	32	0

When asked why they book serviced apartments, 57 per cent of respondents said it was because they provide value for money. This was followed by convenience, flexibility, extra space and long-term suitability. While the top five reasons remained the same as last year, their order has changed, with convenience falling from the number one spot.

Q2. Why do you book serviced apartments?

	2017	2016
1	Better value for money	Convenience of self-catering option
2	Convenience of self-catering option	Better value for money
3	Flexibility to experience the location like a local resident	More space
4	More space	The flexibility serviced apartments allow for experiencing the location like a local resident
5	Long term suitability	Long term suitability

Of those buyers who do incorporate serviced apartments in their programmes, more are allocating a higher percentage of their budget towards them, corroborating the above statistics (see below). For example, in 2016, 7 per cent of buyers spent between 11 and 25 per cent of their budgets on serviced accommodation. This year, that rose to 13 per cent, while the number of buyers spending between 26 and 50 per cent remained consistent. 

Q3. What percentage of your accommodation budget is spent on serviced apartments? (Answered only by those buyers who use them).

%	2017	2016
Less than 10	84	90
11-25	13	7
26-50	3	3

With 42 per cent of buyers not using any serviced accommodation suppliers, however, and 38 per cent still vetoing sharing economy providers (albeit a massive drop from 91 per cent last year), the poll of 243 buyers show there is still a way to go for alternative accommodation providers to be an automatic choice for travel buyers.

David Chapple, event director, Business Travel Show, said: “Our research is great news for the serviced apartment community and is testament to the work ASAP has done in raising awareness of, and building trust in, the industry and its suppliers.

“It’s also an honest reflection of the state of the market. For the last two years, our annual survey of travel buyers has shown that the number one challenge facing them is cutting costs while maintaining quality and value for money. With this in mind, it’s no surprise that more buyers are looking to alternative and budget accommodation providers and incorporating these in their travel programmes alongside more traditional four and five-star business hotels.

“Of course, the demographic of travellers is also changing with younger executives enjoying the flexibility and convenience offered by alternative accommodation – something they have become used to as leisure travellers. We have understood and – to a degree – preempted this shift at the Business Travel Show, and accommodation providers from all sides of the market can be found on the show floor for buyers to talk to, including Melia, IHG, Best Western, Airbnb, NH Hotels, Premier Inn and the serviced apartment providers in the ASAP Hub.” 

James Foice, chief executive of the Association of Serviced Apartment Providers, added: “It’s absolutely fantastic to see that 20%, or 1 in 5, of corporate buyers have increased their use of serviced apartments this year. The popularity of our serviced apartment product has never been higher with the significant increase in supply this year – more than 2,000 new serviced apartment units have opened right across the UK in 2017. 17% growth in supply is forecast by 2020 so this trend is all set to continue. More corporate and leisure travellers prefer this more flexible way to stay offering a bit more space to live, work, sleep and eat.

“It’s particularly interesting to see ‘value for money’ coming out as the top reason why corporates are using serviced apartments. We find more and more companies book two-bedroom/two-bathroom apartments and colleagues will share the apartment, making it a more cost-effective choice as well as giving employees working away from home some companionship. 

“Our ASAP Quality Accreditation Programme - under which operators are assessed by the Association’s accreditation service, ISAAP, to ensure they fulfil all their duty of care, compliance and health and safety requirements - is also proving to be a very important additional benefit to corporates.

Buyers will find the ASAP Hub at the BusinessTravel Show, including Acomodeo, BBF, City Apartments, Fountain Court Apartments, Frasers Hospitality, Marlin Apartments, The Harrington Collection, Roomspace and StayCity. Other serviced apartment providers at the show include Go Native, The Serviced Apartment Company, BridgeStreet Global Hospitality, Pine UK Holdings, DBA and Oakwood Worldwide.

Click the link to continue your free registration to the Business Travel Show, which takes place at Olympia London from 21-22 February 2018.