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CONSIDERATIONS BEYOND COST
As a result of the above , and continued COVID recovery within the industry , cost pressures have increased the need to diversify solutions which has enhanced interest in ‘ alternative accommodations ’ or accommodation sourcing . Temporary corporate accommodations are not stored in a single global database ; they are in thousands of buildings and locations around the world , and there is a myriad of accommodation types that formulate the product being offered to corporate guests already . This can be confusing when discussing ‘ serviced accommodation .’ With strengthening data privacy requirements , growing safety and due diligence concerns , and increasing global legislation changes attempting to regulate and tax the short-term rental market , it is more important than ever for corporate clients to have confidence that their needs are being managed by professionals who fully understand their unique requirements , challenges , and fully adhere to all regulations . Confidence in procurement and supply chain management is therefore critical to success ; it is not just about who offers the cheapest rate .
There are additional considerations alongside cost to factor in to serviced accommodation provision .
Credit : edyn
Changing preferences brought on by hybrid work models mean guests are looking for more space . Changing location preferences , for example a longer commute , more suburban neighbourhoods , secondary or tertiary cities , or increased desk space ( often for two occupants ), as well as an increase in accompanying pet needs , have led guests to want an experience tailored to their exact circumstances and requirements more so than ever . Corporate budgets have not always kept up with changing guest demands or expectations . In addition , corporate relocation is seeing more competition for serviced accommodation products from business travellers and tourists ; groups that can represent higher spend or profit margins . Environmental , Social and Governance ( ESG ) commitments will also continue to factor into corporate accommodation decision making . Reportable ESG statistics are important and will continue to develop how , where , and why certain accommodations are booked . Whilst we lack global standards within the serviced apartment industry at present , many aggregators and accommodation providers remain focused on this essential target . ESG reporting and selection will be a continued area of concentration for corporates and an area which I can really see as representing a growing differentiation for the serviced accommodation industry in comparison to the online marketplace ‘ competitors ’ such as Airbnb , who are yet to spotlight on this scope .
GETTING THE BEST VALUE FROM YOUR BUDGET
How to get the best value from your budget goes hand in hand with the need to educate clients and end users about serviced apartments , aggregators , and the industry as a whole .
Rates and estimates are complex as they are based on supply and demand principles and therefore subject to change . Rate comparisons are challenging - apartment providers can demand a different rate for each square footage , apartment type and floor location . There may be different operators within a building that may have similar units , but ultimately are not vetted or operated by providers that would comply with our scope of service . Rates can vary across even city locations due to variations in areas , desirability , etc ; vary based on length of stay or depend on actual dates needed where large sporting or cultural events for example may impact . They are often projections based on booked values and historical data and need to factor in peak / off peak fluctuations to remove any disproportionate data . Budgets provided by data providers often fail to factor in these variances , fluctuations , and nuances which can ultimately impact budgets and in turn apartment quality and the guest experience .
Our partner ’ s technology systems , alongside their human expertise , is critical to ensuring Sirva experiences the best possible rates . Within our partners technology systems , there is a mini bid or auction for every file initiated , creating dynamic and competitive markets among housing providers . These real-time auctions , where certified partners engage in competitive bidding , ensure transparency and fairness . It guarantees clients benefit from live competitive