Despite being fairly new to the European market, extended stay has grown rapidly in the latest years. In fact, the number of available units has increased by more than 250 % during the latest six years, but still there are many European cities with constrained levels of supply. But what has caused this growing demand and awareness? And what does the future look like for the extended stay market?
One of the reasons of the increasing demand is the traveling millennial. Millennials are known for being pre-adopters of coming and fresh lifestyle opportunities, but they also prioritize value higher than the older generation. One of the reasons of their heightened economic awarenessis that more and more young people start studying, and therefore learn to live and adapt to a students budget, but the main reason to why millennials choose cost-effective Serviced Apartments rather than hotels is the technologic development and the transparency that follows with it. Apps, social media and new concepts that have been available through the digitalization, such as AirBnB, has led to the abandonment of traditional travel agents and group tours. Wanting a luxurious stay doesn’t necessarily longer equal having to pay for a luxurious hotel, and the millennials knows this.
This evolving customer trend has also found its way to corporate business. The unnoticeable rise of AirBnB has highlighted many alternative accommodation options, but the technological development has increased demands in other ways as well. For example, only Silicon Valley outperforms Stockholm regarding billion-dollar startups and the needs of companies such as Spotify, Klarna, and Skype, has placed Stockholm as one of five cities with the most attractive market for extended stay.
But there are not only tech businesses that have started to see the benefits of serviced apartments. According to Savills, more than half of those who take any kind of bleisure trips bring their family with them and thus want a “home away from home” living, with their own kitchen and other amenities not usually offered in a regular hotel. A choice that suits most companies well due to the fact that serviced apartments can offer differently tailored solutions to different corporate needs, but also on account of the lower operational cost structure and potentially larger profit margin.
So what does the future hold for extended stay?
The – as mentioned earlier – relatively young market has shown a continual growth as a result of a growing demand. The European GDP will increase, the American economy will grow stronger and as mobility improves, people will continue to travel more, making serviced apartments a highly attractive consideration for business people, leisure travellers and relocating employees.
Here at StayAt, we will continue to strive for a better guest experience – both out of office and work-related. And without revealing too much, our goal for 2017 is to offer a more digital experience, providing your co-workers with more accommodation options and simplifying their stay here on StayAt – a development we look forward to share with you soon.