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  • Are Serviced Apartments at the Forefront of Sustainable Tourism?

    Are Serviced Apartments at the Forefront of Sustainable Tourism?

    According to the World Tourism Organisation (UNWTO), sustainable tourism is:

    ‘tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities’. 

    Whilst the easiest way to travel with the environment in mind is to minimise travelling distance, we understand that this may not be an option for many corporate and long-stay travellers. Therefore, it is essential to minimise the environmental impact of your stay as much as possible. 

    Why is there such a demand for sustainable tourism?

    The demand for sustainable tourism reflects global trends to be more environmentally conscious. This is highlighted in a recent study by Simon-Kucher & Partners (2021), which found that 85% of respondents had altered their purchasing behaviour to be more sustainable, over the past five years. 

    These global trends have rippled across corporate travel as well. Recent discussions from the United Nations Climate Change Conference (COP26) have highlighted the existential threat of climate change. In effect, this has accelerated the demand for businesses to make more environmentally conscious decisions, something that the corporate travel sector cannot disregard. 

    So, what has this meant for the serviced apartment industry?

    Data from the Global Serviced Apartment Industry Report (GSAIR, 2022) indicates that sustainability, ESG, and safety have become top priorities for businesses and employees. This resulted in 15% of businesses increasing the use of serviced apartments in 2021. GSAIR also found that since 2010, 52% of corporates and 60% of TMCs state that their serviced apartment use has increased significantly. 

    How exactly are serviced apartments more sustainable, in comparison to other accommodation alternatives?

    1. Longer Stays

    Longer stays mean reduced travel. Further insights from GSAIR suggest that business trips will continue, but at a fewer rate and for a longer duration. The pandemic has fast-tracked a shift from face-to-face business to virtual video conferencing, which has drastically cut down the need for travel. This is illustrated by GSAIR’s findings that 39.2% of business trips in 2021 were eight nights or more, whilst the number of 7-14 night stays doubled from that of 2019. 

    By reducing the need for travel, and staying in a serviced apartment for the duration of your trip, your carbon footprint is significantly reduced. This lessens the contribution to global warming and pollution from burning jet fuel whilst travelling by aircraft. 

    2. Co-living

    Serviced apartments offer a home away from home, with all the necessary amenities you require for daily use. This is the same for co-loving apartments, however, you share your home away from home. This includes sharing the lounge, dining room, and any other communal space at the same time. This option encourages a sense of community and can be great for sociable travellers who often find themselves lonely on their business trips. 

    Co-living also makes group trips and work projects much easier. The hassle of organising accommodation for group trips and work projects is cut dramatically when co-living is considered. 

    3. Sharing Transportation

    As well as the benefits mentioned, co-living also encourages the sharing of transportation. Transportation choices that get you from A to B with the lowest carbon emissions should be favoured. Travelling in a group is undoubtedly better for the environment than travelling alone. Specifically, if you are travelling in a group large enough, buses are often the most preferred eco-friendly transportation option. Apart from cycling and sailing, of course. 

    4. Sustainable Housekeeping

    Here at TheSqua.re, and largely across the serviced apartment industry, cleaning and housekeeping services are carried out on a weekly schedule.

    This is great for guests who want to relax in their apartments, without any disturbances. Not only this, less frequent housekeeping can help to reduce the environmental impact of your stay! 

    Cutting down on unnecessary daily cleaning of towels and linen significantly reduces the number of times the washing machine is being used, which saves A LOT of electricity. 

    Weekly cleaning and housekeeping also reduce electricity use in the apartment, largely coming from vacuum cleaners. According to The Home Hacks DIY, Vacuum cleaners tend to use between 450 watts to 2500 watts, typically using 1.4kWh of energy per hour. 

    Did you know…?

    • During a 30-night stay, the CO2 footprint of a serviced apartment is 70% less than a name-brand hotel in Canary Wharf. 
    • Serviced apartments use 40% less water than the average hotel room per night. 

    For your next business trip, try integrating sustainability into your accommodation choice by considering a serviced apartment. 

    The Global Sustainability Study 2021 survey was conducted in July 2021 by Simon-Kucher & Partners, fielding through panel data provided by Dynata, an independent market research agency. 

  • The increase in serviced living and what it means for the hospitality industry

    The increase in serviced living and what it means for the hospitality industry

    Martin Brage of Aptel looks at how serviced living has become one of the main growth areas in the hospitality sector and evaluates its potential for more expansion. (Article Source https://servicedapartmentnews.com)

    In a landscape where Airbnb is a key rival for the hotel industry, businesses up and down the country are re-evaluating their offerings to remain competitive – especially in the tougher post-pandemic world.

    Whether this involves updating booking software, improving customer service, or reallocating costs elsewhere, hotels have been forced to change to suit new industry expectations.

    One key development is the increased supply and demand for serviced living, a general term for fully furnished, often cheaper, accommodation, featuring everything you would need, including bathroom and kitchen facilities. According to Savills, the London hotel market saw a 26.7 per cent expansion in serviced living in 2022, demonstrating a clear demand in the capital and beyond.

    Staycations are now increasingly popular among British holiday goers during the cost-of-living crisis, and the need for cheaper accommodation is set to increase over the next 12 months. So, why is this? And what does this mean for the wider industry?

    Why has serviced living become more popular?

    For businesses, hotels that offer in-room kitchen facilities can reduce spending once used on chefs, ingredients, and waiting staff in their onsite facilities. These savings can then be attributed to profits or distributed elsewhere in the business to enhance the guests’ experience.

    These are just two examples of cost efficiency that has helped serviced living excel within the industry. Combining this with the less tangible benefits, such as more privacy and increased independence for guests, and the business benefit of offering a wider range of options; serviced living is primed to expand further this year.

    What does the growth of serviced living mean for the wider industry? 

    Those at the forefront of serviced living have seen the growth first-hand. But how does this impact those watching on from the side-lines, in traditional hotels, Airbnb, and beyond?

    For starters, future hotels are having to adjust their plans quickly ahead of opening. On its own, London has 3,000 committed units in the pipeline [according to Savills], which bodes well for the serviced living industry. But this puts recently opened or soon-to-be open hotels lacking these facilities under pressure, as they will need to immediately pivot or look to incorporate serviced apartments into their future developments to ensure they can compete with increased rivals.

    There is also potential for a change in approach to impact other hospitality, like bars and restaurants, which may rely on nearby hotels and their passing trade for bookings and sales. Condensing the city break experience to a single room takes options out of the consumer’s hands and puts them into the hands of the hotel. While this is inevitably is good for some, it may leave the wider industry at a disadvantage.

    What can we expect from serviced living in the future?

    Serviced living has already established itself as a key player in the industry, both as a rival to traditional hotels and as something to compete with Airbnb.

    From a business perspective, there is huge potential for hotels to incorporate certain amenities and drastically reduce their overheads. For instance, by removing bars, restaurants, and cafes in place of larger, fully serviced rooms. Whilst there is a real possibility of many hotels choosing this route, others will maintain their status as a traditional facility to offer a more luxurious experience at an increased price, with a higher standard of on-site services.

    Looking forward, improvements to the current cost-of-living crisis could see an injection of funds into the tourism industry, as consumers begin to spend their disposable income more freely and spending more on meals out, local experiences, and better-serviced hotels. This potentially paves the way for traditional hotels to counter-programme the cheaper all-in-one approach of fully serviced apartments. Alternatively, if the purse strings continue to be tightened, we could see serviced living strengthen its hold on the hospitality industry further.

    The growing popularity of fully serviced living facilities demonstrates consumers’ demand for more contained, cost-effective, and streamlined experiences. For an industry hit most heavily by the pandemic, a breakthrough in new hotel offerings is a welcome addition to the fray, despite potential concerns from traditional hotels and dependent businesses.

    In 2023, the story of serviced living is seemingly an easy one to follow, with more demand and increased supply in the pipeline. However, with many units potentially looking to reduce spending and invest in serviced facilities instead, traditionalists who opt for standard tourism experiences could be at risk of falling behind. For now, only time will tell.

    Martin Brage played a pivotal role in the launch of Aptel in east London, in 2021, with a keen focus on incorporating sustainable developments and cutting-edge, guest-centric innovations. With over two decades of post-qualification expertise in the property industry, he brings a wealth of knowledge and experience to the table. In addition to his role at Aptel, Martin is a seasoned entrepreneur, successfully managing his own property development and investment company.