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In addition , professional services , IT , and engineering sectors are also contributing to demand . Professionals in these fields often require temporary accommodation for business trips or relocations .
Challenges and opportunities in the Australian market
While the serviced apartment industry in Australia is experiencing growth , it is not without its challenges . State Government regulations , in particular , can be a significant hurdle and there is a lot of pressure building as government bodies try to find solutions to the highly topical housing crisis .
Regulatory frameworks also vary widely from state to state . In some states , strata laws , which govern apartment complexes , can impose restrictions on shortterm rentals , limiting the availability of units that can be utilised as serviced apartments .
Moreover , licensing and operational restrictions are complicating business operations . Different states have different requirements , and navigating this regulatory landscape can be costly and time-consuming for businesses . For smaller operators , these regulatory challenges can be particularly daunting and as a result , some have been forced out of the market . Larger players with more resources are better equipped to handle the complexities and absorb some of the additional costs .
On the other hand , these regulatory obstacles also present opportunities for businesses that are able to navigate them effectively . Companies that can establish strong relationships with local governments and strata bodies and adapt to the specific regulations in each state are well-positioned to thrive in this fragmented market .
Standing out in a competitive market
As demand grows , so does competition , so it ’ s essential to know who the differentiator is . From its beginning in 2001 , Astra Apartments carved out a niche by focusing solely on the corporate sector . By providing a specialised service that caters exclusively to business travellers and the companies they work for , we differentiate ourselves from competitors who may also serve retail clients and short stays .
From a product perspective , it ’ s about full-sized apartments , with spacious living areas , full-sized kitchens , internal laundries and work desks . Our 24 / 7 meet & greet service and apartment orientation remain highly valued by our clients , as well as maintaining stable rates for our corporate customers when leisurebased events like the Australian Open or Melbourne Grand Prix are in town .
The role of intermediaries and direct relationships
Direct client relationships have always been a crucial source of business for many Australian serviced apartment operators . However , increasingly Travel Management Companies ( TMCs ) and Relocation Management Companies ( RMCs ) are being engaged
Credit : Astra Apartments
for their services and are playing an essential role . Since the end of COVID , we are seeing many more corporates engaging TMCs to facilitate and run their accommodation programs . In turn , many TMCs are turning to Online Booking Tools that allow their client ’ s staff to self-book all travel needs , thereby streamlining the booking process .
Many companies have a hybrid model , where some bookings come directly and others through intermediaries . Navigating , understanding , and respecting the boundaries of these models is key .
What are guests / clients demanding in the Australia / New Zealand region ?
With remote and hybrid work now the norm , there ’ s an increased emphasis on seamlessly integrating work and living environments , especially when it ’ s a long-term stay .
At the forefront of these expectations are dedicated workstations within the apartment because they offer a clear distinction between professional and personal spaces . No longer is a dining table in the apartment sufficient for the rigours of remote work ;