July 15, 2024

Serviced apartment industry continues to flourish, says GSAIR

The 2023 Global Serviced Apartment Industry Report (GSAIR) is reporting growth for the 15th consecutive year. 

Serviced apartment usage, rates and length of stay are all up on 2022 figures, with 80% coming from the corporate travel sector. Traveller safety, guest experience and policy compliance remain key criteria for relocation and travel managers. 

The report is published by Ariosi Group Limited Compiled by Travel Intelligence Network.

Key GSAIR 2023 findings include:

Serviced apartment usage has grown for the 10th consecutive GSAIR 

  • For corporates, usage has grown by 53% for business travel, 38% for assignment work and 89% for relocation. 
  • Agents on the other hand say usage has grown most for assignment work at 64%, 55% for business travel and 44% for relocation.  
  • Operators estimate that 20% of bookings are now for leisure travel. 

Average length of stay is increasing  

  • 89% of corporates predict that the average length of their business stays will increase or stay the same in 2023.  
  • 87% of serviced apartment agents reported an increase in average length of stay of their clients versus 45% in 2022. 

RFP strategy separates serviced apartments from hotels 

  • In 2023, 54% of corporates are separating serviced apartment RFPs from hotels, compared with just 19% in 2022.  
  • Only 38% will issue a single, combined serviced apartment and hotel RFP in 2023 compared with 63% in 2022.

Rising energy costs will impact rates 

  • 50% of corporates and 46% 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% of operators are planning to mitigate additional energy costs by charging higher nightly rates.

Sustainability is a key driver 

  • 43% 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% 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.