- 748,437 short stay serviced apartments worldwide operating in 9,875 locations
- Inventory up 14% year-on-year and 80.1% since 2008
- Apartment usage for assignment/project work growing in 72.73% of companies
- Distribution widening – 75% of operators now receive bookings from OTAs
Published by Travel Intelligence Network (TIN) for that Apartment Service, the brand new edition is easily the most detailed yet, including over 30 interviews and findings of surveys conducted among 2,500 serviced apartment operators, associations, buyers and agents.
The report highlights the serviced apartment industry has arrived at an amount of maturity that’s showing future development of supply via a multiple of things, including sustained purchase of delivering new items, ongoing possibilities in educating buyers and driving understanding of the sphere through summits, conferences and thought leadership.
Global way to obtain short stay serviced apartments has elevated by 14% because the previous edition from the report that was printed in June 2013. Charlie McCrow, Chief executive officer The Apartment Service believes ‘the market bending in the last 12 years’ and forecasts it’ll double in dimensions again within the next four years.
Nowadays there are 748,437 short stay serviced apartments worldwide – an 80.1% rise in just seven years. GSAIR 2015-16 highlights significant interest from institutional real estate investors like a supply of considerable future development in inventory around the world. 69.12% of operators say they will raise the quantity of apartments in existing locations within the next 2 yrs, predominately in Asia and europe.
Global systems and partnerships, like the TAS Alliance launched in Feb 2014, have given a platform for those brands and operators to showcase their goods.
These alliances are enhancing the largest and also the tiniest operators to get into global booking channels and global serviced apartment programmes worldwide.
The very first time, the GSAIR has rated the key serviced apartment brands by product and consumer ratings, because the Apartment Service’s Chief executive officer Charlie McCrow explains:
“The theory is the fact that greater product consistency and growing brands will drive customers to base their purchasing alternatives on what exactly of distinction between operators’ brands. However we feel that area of the benefit of short stay serviced apartments is the fact that no two goods are ever completely identical,” states McCrow.
As serviced apartment supply has elevated, so has got the product’s recognition among corporate and moving vacationers. GSAIR predicts the Millennial Vacationers is going to be passionate adopters and can drive future design, content and distribution.
81.48% of survey respondents prefer short stay serviced apartments to hotels, when compared with 78.1% in 2013. 71.6% cite the opportunity to prepare their very own meals or entertain, like a factor, 66.6% privacy and 58.3% the ‘overall’ serviced apartment atmosphere.
An aggressive market rate continues to be primary making decisions factor for 75.4% of corporates, adopted by total price of stay, duty of care and traveller/assignee feedback.
GSAIR highlights numerous challenges that are thought to be possibilities for that sector:
“Although the difficulties our industry faces aren’t new, the emphasis is certainly changing” states Jo Layton, MD Group Commercial Sales in the Apartment Service.
“Over the final 18 several weeks because the 4 th edition 2013 -2014 GSAIR report – the serviced apartment industry has ongoing to develop tremendously. The is enjoying discussing ideas, information and sources through many vehicles, and is constantly on the drive conversation, debate and opinion which has moved the forward with subjects from quality to service from security to local legislation and from sales to distribution – constantly maintaining your stakeholders connected through active conversation. “
To learn more click the link
Get The H&C E-newsletter
Join 23,381 professionals across our industry receiving business news