9 accommodations , is now becoming a market in need of alternative solutions as traveller demographics and psychographics shift . Consequently , the supply of serviced accommodations which meet these diverse requirements of travellers will only continue to grow as investors and property developers target growing groups of consumers such as interns and graduates .
An emphasis on cost containment
The requirement for cost-sensitive accommodation solutions continues to be a priority across India , particularly among domestic buyers . While our industry recovered impressively from the COVID-19 pandemic , the longer-term effects remain in that travel budgets are coming under increased levels of scrutiny as the value of virtual working remains high . Today , corporates are increasingly required to contain costs and demonstrate the additional value of in-person trips , particularly as the concept of “ purposeful travel ” prevails .
Despite this emphasis on cost sensitivity however , service providers and buyers must consider the “ hidden costs ” associated with cutting costs . Within India , for example , choosing a serviced accommodation option further away from one ’ s place of work may be cheaper in terms of nightly price , but could have an impact on a traveller ’ s productivity due to additional commute times due to traffic and so on .
Building bridges between quality standards
India ’ s serviced accommodation sector currently exhibits a wide variation in quality levels , ranging from standard to luxurious high-end options .
Typically , the expectations of an international traveller can differ widely to those of a domestic India traveller as it relates to accommodation quality . With the rise in international travel , the gap between high and low quality accommodations is expected to narrow as travellers , both global and local to India , seek a standard of accommodations similar to what they experienced in more advanced markets around the world .
We should anticipate investment into the mid-range sector , particularly as international travel managers seek to optimise traveller productivity through enhanced comfort and wellness .
Price versus availability
Unsurprisingly , increased demand for serviced accommodation has led to a slight uptick in nightly rates . These price rises , however , remain moderate as new streams of supply constantly enter the market .
This additional supply is mainly a result of increased investment from local property developers — particularly in high demand locations such as Bengaluru and Hyderabad ’ s IT parks — as well as the globalisation of major hospitality brands and the emergence of new , alternative accommodation providers .
An opportunity to push the boundaries of industry duty of care
As we pointed out earlier , serviced accommodation is still in its infancy across India , particularly within secondary and third-tier cities . Now , as an increased number of international players enter the market , we will likely witness a shift in the management of industry duty of care . This shift should bring with it a period of innovation as brands seek to both standardise and level-up the wider industry ’ s approach to apartment vetting in accordance with international duty of care obligations .
" Gone are the days where demand for serviced accommodations across India came primarily from international executives and c-suites . What was once a market fuelled by demand for luxury accommodations , is now becoming a market in need of alternative solutions as traveller demographics and psychographics shift ."
Credit : Astra Apartments