LONDON – 6th June 2013: Demand for serviced apartments is growing faster than new supply is coming on-stream, as an increasingly-mobile global workforce drives business travel and relocation activity. But whilst global apartment brands are expanding into new and emerging economies and new sub-brands are launched, the industry is no nearer the levels of standardisation in product and distribution required by corporates.
These are just two of the findings in the fourth edition of the Global Serviced Apartments Industry Report, published by Travel Intelligence Network for The Apartment Service, which includes the findings of a new survey conducted amongst corporates, TMCs and apartment operators, as well as an overview of global supply and demand trends and individual regional reports.
Charles McCrow, MD of The Apartment Service says buyers and suppliers agree that greater standardization is the key to realising the full potential of the sector, yet little progress has been made since The Apartment Service’s last report was published in 2010. “Standardisation should be the clarification of minimum service levels and quality thresholds that can be expected from different categories of product” says McCrow.” The emergence of strong brands will go a long way to enable this but with so many independent providers, universal clarity is required.”
“86% of corporates and 72% of agents agree there should be a global Code of Conduct for serviced apartment operators. Operators agree, but only 48% believe that a Code of Conduct is feasible.”
Barriers to growth
The report also found that there are three principal barriers to sector growth; a shortage of supply in required locations, the sector’s limited online booking capability and a lack of understanding about the serviced apartment product itself. Despite these challenges, property professionals, hospitality providers and entrepreneurs are realising that the extended stay market can provide good returns on investment. This will fuel the pipeline for both existing and new providers.
Other key findings from the new report were as follows.
Copies of the report can be downloaded, free of charge, from:http://www.apartmentservice..com/news_events/global-serviced-apartments-industry-reports
For more information
Mark Harris – editor, Global Serviced Apartments Industry Report
Tel. +44(0)7850 072166
Bard Vos – The Apartment Service
Tel. +44 (0)20 8944 3667