WHAT IS IT WITH SERVICED APARTMENTS?

Talk about alternative accommodation, and everyone thinks you’re referring to Airbnb. While it’s true that the use of disruptive providers – like Airbnb – is rocketing in leisure travel, business travel buyers are yet to wholeheartedly embrace them. The serviced apartment industry, however, is flourishing and we have the stats to prove it.

For the last three years, the Business Travel Show has collaborated with ASAP (the Association of Serviced Apartment Providers) to poll buyers. This year, our survey shows that nearly a third of corporate travel buyers increased their use of serviced apartments in 2018.

This is a huge leap from the 20 per cent who turned to serviced apartments more often in 2017. In addition, it was the only accommodation category to see an increase in use over the last 12 months.

Thirty-five per cent of the 134 respondents said they had used the same amount of serviced apartments as they did in 2017 – up from 25 per cent in the previous year’s survey.

When asked why they chose to book serviced apartments, the number one reason given by buyers was “better value for money”, followed by convenience of the self-catering option, more space, flexibility to experience the location like a local resident and long-term suitability.

Kat Hendry, Business Travel Show account manager, below

Buyers are also allocating a higher proportion of their budget to serviced apartments; 77 per cent spent less than 10 per cent of their budget on the accommodation option – down from 90 per cent in 2016. Meanwhile, 17 per cent allocated 11-25 per cent, compared to just 7 per cent in 2016.

For the first time in the survey’s history, a small number of buyers said they allocated 51-100 per cent of their budget to serviced apartments, with 1 per cent claiming to spend their entire accommodation budget on this option.

The number of buyers who didn’t use serviced apartments dropped from 42 per cent in 2017 to 32 per cent in 2018, whereas the proportion not using sharing economy accommodation options such as Airbnb rose from 38 per cent to 45 per cent. Furthermore, the number that haven’t used five-star hotels also went up slightly from 28 per cent to 31 per cent.

These are pretty extraordinary statistics that prove the industry is making considerable headway in raising awareness of serviced apartments as valid and valuable alternative accommodation for business travellers. Not only are more buyers aware of serviced apartments as an option, they also appreciate the pros they offer to their travellers and are much more open to including them in their travel programmes.

They also reflect the ongoing pressure on buyers to cut cost and display improved ROI on travel spend as well as the desire from younger travellers to enjoy the flexibility provided by alternative accommodation providers.

We asked ASAP’s CEO James Foice what he thought of the results. He pointed out how the landscape is rapidly evolving for the serviced apartment sector and how ASAP is also seeing a significant increase in supply year on year. In 2018, he said, they found that more and more companies are booking two-bedroom or two-bathroom apartments, as colleagues will often share the apartment, making it a more cost-effective choice as well as giving employees working away from home some companionship. A two-bedroom option also provides privacy and collaboration space under one roof.

We host the ASAP Pavilion at Business Travel Show, so if it’s a sector you are yet to investigate, come and meet a few them in February.

This post was written by Business Travel Show account manager Kat Hendry -kat.hendry@centaurmedia.com @kathendrybts. The Business Travel Show is the leading event for corporate travel in Europe attracting over 9,000 professionals and 260 exhibitors. Taking place from 20-21 February 2019 at Olympia London, the show is celebrating its 25^th anniversary.

WHY THINKING 12 MONTHS AHEAD MAY NOT BE ENOUGH

The Business Travel Show runs an annual buyer survey. We must have been doing it for nearly 10 years, now. Each year we ask buyers what the biggest challenges they’re expecting to face over the next 12 months are, how budgets will change, if they’ll book more or fewer trips, flights, hotel rooms… It gives the industry an interesting snap shot into how the industry changes from year to year and the issues we need to be aware of over the coming months.

At the show, we also curate conference sessions that focus on the next 12 months. Our Forecasting Forum, which looks at the cost of business travel among other things, is always incredibly popular.

Getting access to insight like this – especially data that’s practical – is valuable and genuinely useful to buyers. And that’s why they come to the show from all over Europe – because they want to spot trends and be inspired by innovation

But is it enough to only look 12 months ahead? Given how long it takes for technology, for example, to really bed in and prove itself on a day to day basis, shouldn’t we look a little further ahead and help buyers to visualise how these innovations can be slotted into the travel programme of the future?

With that in mind, this year’s theme for Business Travel Show is Travel 2022 and we’re launching a host of new features to complement it that are designed to ramp up the visitor experience and prepare buyers for the future of business travel. It will focus on introducing travel buyers and managers to the technology, techniques and topics that will/could dominate the industry over the next three years.

Keep an eye out for WonderLAB. It’s a fun interactive tech showcase where buyers can get hands on with the innovations that will impact travelling and travel management in the future. Think driverless cars, drones, robots and mixed reality experiences.

Then there’s the Future Forum: a new multipurpose theatre and communal space on the show floor where visitors will be able to take part in brand-new Huddles (brilliantly informal educational and networking opportunities) and watch the fourth annual Disrupt Awards final led by head judge Nick Easen.

Talking of the Disrupt Launchpad and Awards, they are back for the fourth year running in 2019. It’s home to the next generation of business travel start-ups and the winner of the Disrupt Awards will be back at the show in 2020 with a free bells and whistles stand.

Over in the conference theatres, there is tonnes of content planned to fit in with the Travel 2022 theme, including agile travel platforms, Brexit and the global risk outlook, using bots in travel programmes, and intro to ONEOrder and a fascinating session on AI, blockchain, bots and mixed reality and how they will transform travel management.

Join us. It’s going to be a fascinating journey.

And if you fancy exhibiting in the WonderLAB – it’s free – just send your entries before Christmas to adam.garside@centaurmedia.co.uk.

This post was written by Business Travel Show marketing manager Kye Blackett. The Business Travel Show is the leading event for corporate travel in Europe attracting over 9,000 professionals and 260 exhibitors. Taking place from 20-21 February 2019 at Olympia London, the show is celebrating its 25^th anniversary.