“ SERVICED APARTMENTS WILL BECOME MORE SIGNIFICANT FOR TRAVEL MANAGERS OVER THE NEXT TEN YEARS. MOBILITY IS THE BEDROCK OF THE SERVICED APARTMENTS’ BUSINESS, BUT MANY TRAVEL COMPANIES ARE ALREADY USING THEM FOR TRANSIENT TRAVEL TOO.”
KAREN HUTCHINGS, FORMER HEAD OF TRAVEL AT EY AND FOUNDER OF CONSULTANCY COBB & HUTCH
possible information in real-time to balance length of stay with flexibility and maximum occupancy on the one hand; and availability, price and quality on the other for corporate customers and individual travellers used to booking their own accommodation. This has been a longstanding issue for the sector and
one Mark Harris, GSAIR’s contributing editor, says is jeopardising the sector’s competitive edge against hotels. “For the last 15 years, corporates have been saying they can’t find serviced apartments in the locations they need and, crucially, online booking processes fall well short of expectations, thereby risking non-compliance with company travel policies.” A full 80% of travel buyers surveyed think their
corporate booking tool’s user experience is not fit for purpose. There is a sense that there is too much focus on connectivity and that user experience is seen as secondary. Yet that could be about to change. Speaking to TripStax’s Jack Ramsey for the GSAIR
report, Daniel Simmons, COO of HotelREZ, said: “Huge changes are coming to booking engines led by changes to what the airlines are doing with New Distribution Capability (NDC), which is to generate higher revenues. The other big change will be in relation to using AI to streamline processes.” Aside from predicted consolidation in the market and
the issues Ariosi’s GSAIR report identifies and urges collaboration on, the introduction of new technology is already starting to move the sector in this direction, and towards service personalisation in business travel and mobility for a better employee experience, saving significant costs and enhancing efficiency for employers. Serviced apartment booking platform AltoVita launched its new AI-generated approach, Alto360, at
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Credit: Wilde London Liverpool Street, Staycity Group
its Smart, Safe, Sustainable Summit 2024, as Fiona Murchie reports in this issue. This powerful tool is the first market intelligence software for extended- stay accommodation that helps programme managers make better budget predictions for their extended- and short-stay programmes. Alto360 and technology like it show how the serviced apartment sector’s product and supporting technology can be the bridge to support companies simplify, streamline and act strategically when it comes to business travel and global mobility programmes. For PwC, working with AltoVita reduced accommodation costs by 48%, for example. For now, however, the shift to wholesale adoption of
serviced accommodation for shorter, more traditional business trips is unlikely given the supply and demand issues facing operators and the costs, including around stricter rules on minimum length of stay in some cities. It does, however, show the logic of mixed-use hotel and residence-like accommodation. Nevertheless, the overall trend again points to the opportunities technology offers towards an integrated ‘business mobility’ approach.
A NEW ERA, BUT COST AND COMPLIANCE STILL PRIORITIES Another important crossover where global mobility and business travel teams could align is around sharing insights, budgets for buying power, knowledge and support, especially on the human factors at play, which make a critical difference to employee experience, wellbeing, relocation and assignment success. The shift to a blended business mobility approach
is being driven by the combination of familiar factors including cost, compliance, user experience, flexibility, strategic alignment and talent management
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