FEATURE SERVICED APARTMENTS
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talent mobility and dependent on technology; they are mobile, connected and share content and experiences in person and via social networks. Millennials can also be very choosy when picking accommodation. Research commissioned by SACO found that Millennials’ priorities are not food and comfort but a high-speed internet connection. Although a comfortable bed remains the top priority for 89 per cent of travellers when staying away from home. The changing demographics of business
travellers is also a factor in the loosening of travel policies – especially in customer- centric companies – to allow travellers greater involvement in decision making. According to Bridgestreet, 47 per cent
of travellers are empowered by their employers to make their own accommodation choices. The Ascott’s Hollants Van Loocke
believes that the impact of generation Y on the industry is huge. “From mobile booking to free wifi access, they are pushing serviced apartment providers to develop their technology capabilities to meet this demand. They also expect much more in terms of personalised services and facilities.” However, Silverdoor’s Stuart Winstone
says that it's far too simplistic to pander towards an idealised 18-34 year old stereotype. “Generation Y doesn’t want to be patronised or treated any different to their older peers. What’s actually popular with Generation Y is having the ability to cook in your own apartment with more space, more privacy and more freedom to do as you please.” Laura Dweck of Go Native offers a slightly different perspective. “Young travellers are not just more aware of serviced apartments, but of all other accommodation types such as Airbnb. They don’t want to be restricted, so to succeed over the next ten years we have to look after all types of traveller.” One area in which Millennials are clearly driving serviced apartment growth is social media. Aside from sharing content and experiences, in the last two years guest reviews have become a powerful influence on bookings by business travellers as well as leisure guests. “The impact of guest reviews on
operators can be a differentiating factor and is definitely part of the decision making process,” says The Apartment
72 THE BUSINESS TRAVEL MAGAZINE
Service's Charlie McCrow. “Reviews provide a perspective not otherwise available to the operator.”
Consolidating corporates Some corporate buyers are now consolidating their travel, HR, relocation and assignment activity. They analyse their total company spend on non-hotel accommodation to identify savings or secure added value services. Consolidated MI is a powerful tool in charting consolidated spend and savings year on year, as The Apartment Service’s Jo Layton explains. “Understanding where a traveller is, whether booked by HR, project managers or their relocation company is one of the key drivers in consolidating programmes. Compliance, including health, safety and security, is a priority that can't be ignored.”
Getting it together As the sector has matured, both the range of distribution channels and support networks available to operators have grown significantly. The UK’s Association of Serviced Apartment Providers predicts it will double its 90-strong membership by the end of this year and is now focusing on promoting its kitemark of quality through its accreditation scheme. "Generating exposure for our quality
marque is critical,” says ASAP's managing director, James Foice. He continues, “One corporate we spoke to recently handles 24 million hotel transactions globally and is very keen to influence serviced apartment operators.
➔ Pictured Roman House by Skyline Worldwide
CASE STUDY THE SAVINGS ADD UP
“A travel manager within a law firm approached us with a procurement-led cost-reduction initiative,” says Nouran Zarroug, business development director at Go Native. “The law firm was currently faced with a challenge of significant spend on a four-star hotel in Paddington. As the majority of the bookings were made at the last minute, the nightly rate fluctuated significantly. We were able to offer accommodation solutions with a consistent corporate rate and were able to further add value with the option of two-bedroom apartments. “We achieved a cost saving of approximately £600k
in a year. That cost saving was achieved from not only a reduction in accommodation costs but a reduction in subsistence allowance. “The standard of stay surpassed the previous hotel
choice because of the additional space, the comfort of a sofa and the luxury to cook. It also pleased the head of procurement by avoiding inflated hotel extras such as wifi, laundry, room service and breakfast bills.”
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