GSAIR 2025 | Page 34

Risk management

This uncertainty, allied to greater awareness of travelrelated risk amongst travellers, assignees and relocatees, has brought focus onto the importance of robust yet nuanced risk management policies.

“ Safety is the most important thing we deliver to our employees” says Wood Plc’ s Danny Cockton.“ There’ s still some nervousness around serviced apartments when there isn’ t a concierge, or a front desk.”

The heightened focus on security and geo-risk( e. g. travel to regions with border / immigration scrutiny) is driving traveller and assignee preference for selfcontained, home-like accommodation, especially in less stable regions.

Technology for tracking, guest verification, and data encryption is a must-have for mobility managers.“ For a company like BP, one of the biggest issues we face daily is cyber and digital security” says Richard Eades.“ If an operator has some personal GDPR information coming through, we need to know what they are doing with their technology to protect all of that on a regular basis.”

Changing traveller & assignee needs

Gen Z – those born between 1995 and 2009- now makes up approximately 27 % of the UK workforce and is projected to account for 31 % by 2035, when Gen Z will be the largest generation in the job market. 36

The first generation to have grown up entirely in the digital age, Gen Z is moving fast into the business traveller and early-career assignee / relocatee population, impacting mobility policies and the design and marketing of extended-stay products including serviced apartments.

67 % of Gen Z workers are open to relocating for job assignments 37 and value flexible relocation packages that support their lifestyle choices, including housing assistance, transportation options, and community integration. 38

Gen Z wants choice and is particularly vocal about mental health and wellness. In response, corporate policy makers are widening approved accommodation categories to include serviced apartments and co-living and offering stipend or budget-based travel policies instead of rigid supplier lists. Mobility programmes are shifting to core compliance / immigration support with flexible allowances for lifestyle needs. 39

Younger assignees are driving demand for shorter international rotations, and companies are meeting this with short-term assignments( up to 12 months) or extended business travel instead of full relocations. Serviced apartments are benefiting because they’ re better suited to flexible lengths of stay when compared to longer-term leases. 40

Changing generational attitudes are reflected in serviced apartment products too. Gen Z values home-like amenities and community features, so brands like edyn and Staycity are re-designing their products to meet these needs by incorporating wellness facilities, co-working spaces, and personalised experiences, with a strong emphasis on sustainability and social purpose. These brands also leverage Instagrammable design elements and prioritise tech-savvy features like seamless booking and digital experiences.

Gen Z travellers expect swift, fully digital experiences, from booking to check-in / check-out. Operators are meeting this with automated systems, digital keys, mobile check-in, and streamlined online portals. 41 In-apartment, app-controlled lighting, climate systems, and voice assistants are becoming standard requirements. 42 Themed interiors, concept-store aesthetics, and boutique touches help create unique, photo-ready environments.

Whilst not the first generation to seek trips that blend business with leisure, Gen Z expects both the option and flexibility to do so, and expect this to be seamless within their travel programmes. In practice, this means apartments that include private workspaces. In co-living spaces, this manifests itself in hybrid models combining communal areas to satisfy Gen Z’ s social and work needs. 43

Serviced apartments vs Hotels

Although hotels account for 50.8 % of corporate bookings, serviced apartments now make up 33.9 %. Extendedstay hotels and aparthotels make up 8.5 % and 5.9 %, respectively. 44 In 2024, corporate demand was the fastestgrowing segment within the serviced apartment category, and over half of operators expected it to remain the primary growth driver in 2025. 45