GSAIR 2023 26
Hotel or serviced apartment ?
As Fig . 9 shows , total cost of stay is corporates ’ most important consideration when deciding between a hotel and a serviced apartment , followed by value for money and traveller well-being .
Agents say their clients ’ most or very important priorities are location ( 85.18 %), followed by length of stay , price / quality comparison and guest experience ( all 81.48 %). Traveller preference is ranked last , which is surprising given that external research highlights the increased importance of addressing evolving traveller preferences . 11
In the relocation market , Beverly King says Gen Zs needs are simpler than their predecessors . “ They will typically only want a single or double bedroom but not multiple bedrooms . They also need fewer amenities .”
“ Gen Zs are currently mainly lower level employees so the budgets for their stays are typically lower too . During Covid people got used to being in their own homes , so when they go away now , they don ’ t want to sacrifice the living space they have at home .”
“ Availability is my first benchmark ” says Carol Fergus . “ Next , I look at location in relation to our offices or the city centre , then safety , and quality standards . I expect the serviced apartments we use to be very clean , very spacious , with all the facilities required , after that I look at the value-adds like concierge , meet and greet , how maintenance is managed , or where travellers can eat nearby .”
RFP strategy
Our 2023 survey shows that corporate thinking around RFPs has performed a U-turn over the last 12 months , as corporates move away from combined to separate hotel and serviced apartment RFPs . This may be due to the ratio of RMCs to TMCs that took part in this year ’ s survey .
This year , 53.85 % of corporates say they will issue separate hotel and serviced apartment RFPs , compared to 18.52 % in 2022 . 38.46 % will issue a single , combined RFP , compared to 62.96 % in 2022 .
“ We ’ re getting broader questions on sustainability and Diversity , Equity , and Inclusion . There ’ s definitely greater focus on the user experience , on flexibility within the package offered and how technology links the two .”
Barriers to greater use
As Fig . 10 shows , availability in required locations remains the biggest obstacle to extended stay taking further market share from hotels . The inconsistent quality of stock is another major barrier , although distribution channels and lack of clarity around ownership are cited as secondary issues , as they were in 2022 .
“ Availability is the key to further growth ” agrees Carol Fergus . “ Next , operators need to embrace distribution technology . Our TMC needs to be able to book apartments through the GDS .”
As Fig . 11 shows , agents also cite a shortage of apartments in their clients ’ required locations as the primary barrier to further adoption of serviced apartments , followed by inconsistent quality standards and guest services .
Changing demographic
The GSAIR survey shows that traveller and assignee needs are changing , a fact operators will ignore at their peril . Gen Z expects greater individuality in apartment design and layout .
Their definition of a home from home means highspeed internet connections over parking , gyms , and laundry facilities . 12 54 % of Gen Z spends four or more hours online every day . 13 Employing and evolving sustainability initiatives are also key to attracting this values-driven generation .
As employers increasingly empower their workers to make travel-related choices that meet their personal and business needs , we expect the guest experience to come to the fore over the next 18-24 months .
In the first quarter of 2023 , Graebel received around a third more new client RFPs than they did in the corresponding period of 2022 . The content of those RFPs is changing too , as Beverly King explains .
11 . https :// www . gbta . org / travel-managers-weigh-in-on-business-travels-outlook-for-2023 / 1 12 . https :// resources . yardi . com / documents / gen-z-renter-preferences / 13 . https :// morningconsult . com / 2022 / 12 / 12 / gen-z-social-media-usage /