“ Serviced apartment operators have to consider how they can make their product more appetising to the traveller.” says Carol Fergus.“ Like partnering with ground transportation providers so when the traveller arrives, they are collected from the airport, taken to the apartment, and vice versa, making them feel comfortable from the start.”
“ They also need to harness the opportunities afforded by AI so it feels like they’ re really giving the guest something more than some of the hotels can do. They can provide all that key information the traveller needs before they get to the apartment.”
Accenture’ s Jan Jacobsen makes the same comparison to ground transport and adds another.“ Serviced apartments can learn from ground transportation. Everything is ready when the traveller arrives. The chauffeur is there, my water bottle is there, not plastic. If a ground transportation provider can do that, how come a serviced apartment can’ t fix that?”
Soren Sturup-Toft from Databricks pinpoints ease of booking and cost as the way to realise the true potential of serviced apartments.“ If there is a cheaper option, there’ ll be more people doing it. With ease of booking, you have these alleged booking sites that aren’ t booking sites because whilst you can see it you have to request a quote.”
“ Live or instant booking is best, because you can be sure that you’ re getting it without being out-booked. People want the certainty. It’ s no good if it gets cancelled or you must wait six days to get an answer because people will simply go elsewhere, I want to book everything now.”
With 79 % of travel buyers saying ease of booking is a top programme priority for the next 12 months, it’ s unlikely that serviced apartments are exempt. 74 % expect their online booking tool usage to increase in the year ahead 55 although ASAP estimates that 72 % of intermediary bookings are still made manually direct with properties.
There’ s been a clear shift to shorter booking windows and more last-minute bookings, alongside demand for flexible cancellation. If travellers are booking later, apartments that are instantly bookable with clear, flexible terms will convert more of that demand. 56
Ironically, none of these challenges are new. They have each existed for a decade or more but remain un-resolved. Travel managers do not understand why this is the case, other than cost and the unwillingness of TMCs or operators to take the risk.
Looking ahead
As the financial crash of 2008 / 9 and the pandemic showed, serviced apartments thrive in a crisis. Given a combination of continued conflict in Ukraine and the Middle East, raised tariffs and increased sector regulation, could 2026 provide the sector with its next growth opportunity?
The signs are positive. The UK serviced apartment market is projected to grow at a compound annual growth rate( CAGR) of 8.8 % between now and 2033. 2026 will be a critical ramp-up year in supply, and over the next three years London will see supply increase by 3,000 units, equivalent to a 26.7 % increase in stock. In the same period, Europe will witness a 21.2 % growth in supply.
The proportion of investors targeting serviced apartments rose from 24 % in 2024 to 27 % in 2025, indicating intensified interest. 57 With fewer serviced apartment assets available, demand is outweighing supply, leading to intensified competition among lenders and more favourable financing terms for borrowers signalling sustained capital appetite. 58
Changing traveller needs, with Gen Z becoming increasingly influential on how corporate travel and mobility programmes are shaped, are deepening that opportunity, but travel managers need a coalition of intent to grasp the new opportunities from AI to create new competitive advantages over hotels.
Travel managers predict demand in 2026 will be a mixture of growth and status quo, but they are looking for more in terms of savings or added value.
Credit: Domus Stay
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55
GBTA 2025 Travel Manager Outlook
56
HVS Serviced Apartment Sector in Europe 2025
57 savills. co. uk / blog
58 hvs. com /