GSAIR 2023 20
Average length of stay
As Fig . 5 shows , 44.44 % of corporates say their average length of stay will increase in 2023 , with a similar proportion predicting no change . TMCs and RMCs are more bullish , with 87.10 % predicting longer stays .
Corporates like Fidelity International are actively encouraging their travellers to travel less and stay longer , as Director - Global Travel , Meetings and Ground Transportation Carol Fergus explains .
“ Cost containment and sustainability are driving migration from hotels to serviced apartments . We are encouraging our travellers to stay in serviced apartments for any stay of five nights or more where available . We also highlight that serviced apartments also give them a home from home experience with the option to work in the apartment similar to their current working patterns .”
Relo perspective
The way permanent accommodation is sourced is changing , as Graebel ’ s Beverly King explains . “ Demand for permanent housing in places like London , Dublin , Berlin , Sydney , Perth , and Melbourne , is so high that people need longer to find solutions that work for them and this has led to competition for new stock .”
“ Five years ago , employees took ‘ look-see ’ trips to view their prospective new home and see what ’ s there ( and what isn ’ t ). That stopped during Covid and now , they do their viewings virtually , moving to another country and then taking a couple of weeks to find their permanent accommodation .”
“ It ’ s reducing the cost and carbon footprint , but Covid changed the way people approached relocation because virtual became normal and costs are now even more important to organisations .”
Booking channels
More corporates and agents now use specialist serviced apartment agents to source and book serviced apartments .
In 2022 , the GSAIR survey indicated that less than 10 % of corporates used specialist agents . One year on , 47.06 % of corporates do so . 66.67 % of TMCs and RMCs also partner with specialist agents , compared to 22.27 % and 52.27 % respectively in 2022 .
29.41 % of corporates and 26.57 % of agents now have serviced apartment inventory in their online booking tools , bookable in real-time .
Yet , whilst a higher proportion of serviced apartment bookings are made via TMCs ( 29.41 % vs . 23 % in 2022 ), our survey suggests that usage of OTAs like Expedia and Booking . com is dwindling .
Thanks to improved distribution amongst operators , and TMCs investing in content-rich technology platforms , there is a small ( 5 %) increase in agents offering serviced apartments as a core service , or via a partner . However , operators say 23.16 % of bookings still come direct to their own websites .
Fidelity International uses a specialist agent . “ They manage our preferred extended stay suppliers , with bookings channelled through the phone or emails . The traveller then receives up to three options based on location , safety , standard , cost , and other criteria specific to the guest . The individual decides and then it ’ s booked ” explains Carol Fergus .
Sector maturing
The post-pandemic surge in demand for serviced apartments has slowed - especially from relocation - but remains strong across extended stays ’ three source markets .
The growing maturity of the sector is highlighted by corporates and agents alike turning to specialist serviced apartment agents able to provide the knowledge , insight and ancillary services needed to meet customers ’ business critical needs ; cost control , sustainability , and duty of care .