Serviced apartments are continuing to gain popularity over alternative accommodation for business travellers.
- Corporate buyers’ use of serviced apartments has increased year-on-year, with almost 40% using them more in 2016 than 2015
- With overseas assignments growing by 25% in the past ten years, demand by business travellers for serviced apartments continues to increase
- London, Edinburgh and Manchester have a significant undersupply of serviced apartments
An increasing number of business travellers are choosing serviced apartments over hotels year-on-year.
A poll carried out by the Business Travel Show in collaboration with Association of Serviced Apartment Providers (ASAP) has shown a significant leap in the use of serviced apartments by business travel buyers.
Nearly four in every 10 (39%) corporate buyers claim they have used serviced apartments more in 2016 than 2015. This figure compares to increases of 19% and 13% in 2015 and 2014, respectively. Some 41% of buyers used fewer five-star hotels, while 60% used more budget range hotels and 87% more mid-range suppliers.
The top five reasons given by buyers for using serviced apartments over alternative accommodation options are the convenience of having a self-catering option, better value for money, more space, long-term suitability and the opportunity that serviced apartments allow for experiencing a location ‘like a local’.
Overseas business assignments have grown 25% over the past decade, while rapid urbanisation is seeing accommodation demand exceed supply. Almost 75% of operators have seen a year-on-year increase in demand for serviced apartments.
This rapid urbanisation is particularly evident in regional cities across the UK, including Manchester, where job growth is set to outperform Berlin, Tokyo and Paris over the next five years. A positive correlation is expected to be seen between the projected job growth and demand for suitable accommodation for business travellers in the city.
Manchester is already preparing for an influx of business travellers. CitySuites, a serviced apartment brand set to open its first development in February 2017, will offer business travellers a unique proposition not found elsewhere in the city: the comforts of home along with the luxury touches of a hotel.
Gavin Bailey, CitySuites Operations Director, on why they chose Manchester: “We provide the high quality and customer service of a hotel with the space of a serviced apartment. This combination, along with flexible tenancies simply doesn’t exist in Manchester today and will revolutionise business stays in the city.
“Manchester is the name on the lips of millions of domestic and international business travellers and we believe CitySuites will provide city-centre visitors with an unrivalled new place to call home.”