Worldwide: Serviced apartment consultants Ariosi has published the 2024 Global Serviced Apartment Industry Report (GSAIR).
For the second year, Ariosi Group Limited has released the findings from the annual GSAIR survey, compiled by Travel Intelligence Network.
The majority of the report is based on data from a survey conducted during March and April 2024 amongst 3,000 corporate buyers, serviced apartment operators and agents. Findings were then presented and discussed in a series of interviews with buyers, agents and operators.
Key findings from the 2024 report include:
Stabilised corporate demand
• Corporate travel has levelled off following a peak in 2022 and has declined since 2023, down by 11.18 per cent from 73.68 per cent last year.
• Corporates booking serviced apartments for assignment or project work has increased to 63 per cent, up from 58 per cent in 2023.
Sustainability
• ESG considerations are increasingly important in corporate RFPs.
• While larger brands are adapting, smaller operators risk falling behind the curve in meeting requirements.
Technology
• Buyers are on the hunt for technology that offers more choice, is efficient, and offers a slick user experience.
• Outdated technology is a major frustration for buyers and guests.
Geopolitical and economic factors
• Increase in interest rates, building rates, and rise in regulatory demands are impacting margins, discouraging new builds.
• The relocation market remains subdued – 56 per cent of corporates are booking apartments for this purpose, compared to 74 per cent in 2023.
Hotels
• Hotel chains are reacting to fragmentation of the extended stay sector by launching their own extended stay brands
Joanna Cross, COO of Ariosi Group, said: “I’m delighted to share the eleventh edition of GSAIR, 16 years since the first publication. This year, like many years before us, we bring a top-notch list of contributors to the report and we’re humbled by the commitment and dedication shown by so many.
“In a landscape to be a little bumpy, it’s heartening to delivery a project that epitomises true partnership and collaboration, whilst also continuing to serve the goods in thought leadership. We are excited to continue the long and valuable tradition for the most trusted report in our industry.”
The full 2024 GSAIR, including additional insights on length of stay, rates, sourcing, technology, sustainability and more, can be read here.
