UK: The 2023 Global Serviced Apartment Industry Report (GSAIR) , published today, provides an overview of a maturing sector and growth for the 15th consecutive year.
Published this year by Ariosi Group Limited and compiled by Travel Intelligence Network, this year’s GSAIR features a new format but retains annual survey results and supporting commentary and supplementary articles, along with regional reports with specific focus on trends or challenges in those regions.
Key findings from the 2023 report include:
• Serviced apartment usage has grown for the 10th consecutive GSAIR
– For corporates, usage has grown by 53 per cent for business travel, 38 per cent for assignment work and 89 per cent for relocation.
– Agents on the other hand say usage has grown most for assignment work at 64 per cent, 55 per cent for business travel and 44 per cent for relocation.
– Operators estimate that 20% of bookings are now for leisure travel.
• Average length of stay is increasing
89 per cent of corporates predict that the average length of their business stays will increase or stay the same in 2023.
87 per cent of serviced apartment agents reported an increase in average length of stay of their clients versus 45 per cent in 2022.
• RFP strategy separates serviced apartments from hotels
-In 2023, 54 per cent of corporates are separating serviced apartment RFPs from hotels, compared with just 19 per cent in 2022.
– Only 38 per cent will issue a single, combined serviced apartment and hotel RFP in 2023 compared with 63 per cent in 2022.
• Rising energy costs will impact rates
– 50 per cent of corporates and 46 per cent of agents expect suppliers to make savings in other areas instead of charging a higher nightly rate. Roughly a quarter of both corporates and agents expect operators to absorb the extra costs.
– 75 per cent of operators are planning to mitigate additional energy costs by charging higher nightly rates.
• Sustainability is a key driver
– 43 per cent of corporates say greater awareness amongst business travellers means sustainability always influences sourcing, with 64% of agents saying the same amongst their client base.
– However, 75 per cent of operators deny sustainability is the biggest factor in corporate sourcing decisions, suggesting instead that the strength of feeling amongst their customers may be underestimated.
Ariosi Group Limited COO Joanna Cross said: “Fifteen years after the first publication of this industry stalwart, fondly known more commonly as GSAIR, we gather again to celebrate the 10th edition. A significant milestone for this trusted publication, which has long been recognised as an industry pioneer and piece of thought leadership. Ariosi are excited to continue the long and valuable tradition of the industry’s most trusted report.”
To celebrate the launch of the tenth edition, a networking breakfast followed by presentations around the evolution of the report, interviews, and panel and audience discussions were held at Charlotte Street Hotel, London. The panel was compromised of high profile industry experts:
To register for a free digital copy of the GSAIR report visit https://www.ariosi.com/gsair/
