Booking serviced apartments for long-stay guests is a real no-brainer, in fact suppliers are expanding their portfolios exponentially to keep up with increased demand. Molly Dyson interviews industry experts to find out what this means for PAs. The serviced apartment sector in the UK is a relatively new one, so the concept is often overlooked by those responsible for booking business travel and accommodation. Despite some hesitation from corporate clients, more and more suppliers are reporting substantial increases in demand and many have plans to expand their portfolios in order to support the growth.
In the third quarter of 2013, the Association of Serviced Apartment Providers (ASAP) reported an impressive 90 per cent average occupancy in London and 85 per cent in the rest of the UK. Net weekly rental rates in the capital showed a healthy increase of six per cent, while rates went up by five per cent elsewhere.
According to Mark Harris of the Travel Intelligence Network, more than half of corporate travel policies in the UK now include serviced apartments as an option for accommodation and investment in the industry is expected to triple by 2018, with areas such as Leeds and Glasgow looking at an increase in offerings of up to eight per cent. Worldwide, the number of areas served by properties rose to 9,000 in 2013, up from 6,000 in 2009.
Rebecca Hollants van Loocke, Regional General Manager of Ascott, says there are two clear reasons for the rapid growth: flexibility and value. โCompared with a hotel offering similar space, location and quality a [serviced apartment] represents a big saving โ especially for the longer-stay guest,โ she adds. โBy flexibility, I mean that when guests take their apartment for one night, a few days, or longer, it becomes their home for the duration. They can invite colleagues for a working meal, or friends and family to stay overnight.โ
What does this mean for travel bookers such as PAs in 2014? Such exponential growth in the industry is forcing suppliers to evaluate the services they offer guests and how they can improve. A good number of properties around the country now feature many of the facilities of a hotel, such as 24-hour concierge, housekeeping and other amenities. These points need to be considered when choosing a venue for business accommodation.
One of the main attractions for business guests is the self-catering feature of serviced apartments. Clients from different countries may have strict dietary needs that canโt always be met by hotel room service or restaurants. Having a private kitchen allows you to cook your own meals and itโs almost always cheaper than dining out. To help make it even more convenient, some properties now offer gourmet food deliveries as part of their concierge service.
In order to ensure serviced apartments stay in line with corporate travel policies and to establish a standard of practice, ASAP will introduce the first ever quality assurance programme for its members, whose base grew by 30 per cent in the last six months. James Foice, the Managing Director of the organisation, says: โThis will provide comparative statistical data drawing on the internet review mechanism, on-site assessments and in-house quality control initiatives to compare operators and identify best practice.โ He adds that internal quality control audits will ensure that suppliers are providing guests with the level of service advertised online. With user feedback sites such as TripAdvisor becoming more popular, it will be important for properties to maintain a certain level of quality in order to increase bookings based on recommendations.
James is adamant this will not be an issue for providers. โI am confident that the industry will continue to identify better and more ingenious ways of making the guest experience easier and more comfortable by providing innovative and uniquely tailored products, adding considerable value to the offering.โ
