GSAIR 2023 : EMEA 14
Key destinations and rates
The 2023 GSAIR survey shows that serviced apartment usage in on the rise once again , whether for business travel ( up 53 %) or assignment working ( up 38 %) year-on-year . 8 So , where are they travelling to , and why ? Wesley Shelling , Martin Kubler and René Stegmann share their insights …
Europe By Wesley Shelling
A combination of pent-up demand and emergency travel saw average rates reach an all-time high in 2022 for most Eurozone destinations .
However , since the turn of the new year , that additional demand has tailed off , with key business travel destinations across Germany , Spain , Ireland , France , and The Netherlands all seeing occupancy levels return to what would be considered normal - not a word to be used often in recent years !
Working in tandem with this , average rates were down 11 % for the first quarter of 2023 and fell again by a further 3 % during the second quarter . Good news for the many client segments who have expressed increased sensitivity around managing cost as part of their renewed travel policies . Latest trends suggest rates will stabilise through Q3 with some seasonal fluctuation around tourist hotspots .
Whilst relocations into these destinations have been pared back in the second quarter , we ’ ve seen a steady uptick in business travel from corporate clients booking directly with us , as well as clients arranging their travel through a TMC .
We ’ re seeing the highest demand for business travel in cities such as Dublin and Amsterdam , particularly within the financial and professional services sectors , something we expect to continue into 2024 .
Middle East By Martin Kubler
In the wake of Covid , Middle Eastern markets faced a slow recovery initially . However , an increase in demand driven by the war in Ukraine bolstered the industry , benefiting Gulf states , particularly the UAE and Bahrain . Saudi Arabia , with its ongoing touristic and economic opening and numerous mega projects , saw a rise in serviced apartment supply and usage .
While European and US markets experienced economic challenges and high inflation , key Middle Eastern markets like Jeddah , Jordan , and Qatar saw healthy gross operating increases in the first half of 2023 . The construction pipeline also exhibited promising growth of around 8 % in projects and 6 % in rooms year-over-year . 9
The outlook for the serviced apartments industry in the Middle East remains positive due to three principal factors .
First , an expanding business landscape . The region ’ s status as a global business hub attracts expatriates and corporate travellers , with Gulf powers like the UAE and Saudi Arabia effectively mitigating inflationary pressures through economic strategies .
Second is tourism growth . Successful efforts to diversify economies and promote tourism led to an upsurge in leisure travellers , aided by a decline in the competitiveness of Airbnb .
8 . Global Serviced Apartment Industry Report 2023 9 . LE : Middle East construction pipeline grows 8 % - hotelbusiness . com