THE SERVICED APARTMENT SECTOR is a dynamic and growing business with a global reach. However, in terms of awareness in the corporate travel sphere, it is relatively young and underexposed. So what are the key factors when travel buyers make decisions on accommodation? To find out, we held an editor’s lunch on the topic, which was attended by a cross-section of our readers, as well as readers of Buying Business T
magazine, Business T
ravel’s sister raveller.
The event took place at London’s Oriental Club (orientalclub.org.uk) – its library providing an elegant setting for the discussion – and was sponsored by Silverdoor (silverdoor.co.uk), one of Europe’s largest independent serviced apartment agents, which represents more than 50,000 apartments in over 200 locations worldwide. Silverdoor managing director
Marcus Angell pointed out that in tougher economic times, staying in an apartment rather than a hotel – where extra services can incur charges – can save money. “When the recession started biting three or four years ago, one of the slashes of costs we noticed was in incidentals,” he said. “[Companies would] say to staff, you can still stay in Claridge’s but we’re no longer paying for incidentals. Or, you can take that budget and stay in a serviced apartment – it’s the same quality and you’re better off.” Several agreed that in addition to comparing rates, hotel incidentals such as room service and restaurant meals are an important
Silverdoor's Chris Gee and Marcus Angell, Buying Business Travel's Paul Revel and Silverdoor's Stuart Winstone
SERVICED APARTMENTS
How and when do serviced apartments benefit a corporate travel programme? Senior buyers discussed the sector at a recent Buying Busines
s Tav
consideration when looking at overall costs. One travel buyer said: “Serviced apartments are part of our travel programme, and we’re putting more people into them – and more people are expressing a preference for them, because if they come for a week or more, they find a hotel room is rather restrictive. Serviced apartments are much more comfortable and much better value.” Another reader added that the
extra space, privacy and cooking facilities had particular appeal to some travellers, particularly their female executives, and when employees travelled with partners and families. Some readers said they
occasionally encountered resistance from travellers, and this was often down to lack of knowledge about what serviced apartments offered. One said good serviced apartments can be similar in many respects to a large hotel suite, “and yet they can be perceived as a second-
r el editor’s lunch
tier option. So maybe there are issues around marketing, and terminology.” One element that could
provide more clarity, for managers and travellers, it was suggested, was to introduce a star rating system similar to that used in the hotel industry. “It’s what’s lacking for me – when I’m booking I want to know what quality to expect,” one reader said. As Angell
pointed out, one of the reasons why such a system doesn’t yet exist in the sector is its relative youth. “The serviced apartment sector is 20 to 25 years behind the hotel sector and even that has its issues in terms of
star rating,” he said. “You need enough collective will, the top 20 per cent of volume, to agree on what constitutes a ratings system. Hence the reason some do their own.” Silverdoor operates its own system to ensure customers know what they are getting. “We have a person whose job is to travel around the world inspecting them,” said Stuart Winstone, Silverdoor’s head of business partnerships. Angell said he thought a universal system would “happen eventually”. So can serviced apartments
offer a strategic alternative to hotels? Yes, our panel concluded – but they could also learn better marketing and communicating practices from the hotel sector. ■