New research conducted by serviced apartment agent Acomodeo, found there is the potential for significant savings for business travellers booking serviced accommodation compared to traditional hotel rooms.
The Serviced Apartment Price Radar 2019 report is published annually and compares price differences between serviced accommodation and hotel room rates across the world’s major business destinations.
At a macro level, locations in Central and South-Western Europe tended to offer the greatest savings. But the best performing cities, offering savings of 55 per cent and above, was Zurich followed by Oslo, Dubai and Munich.
What drives savings?
Looking at the report, a balance between accommodation supply and demand at locations is key. For this reason, at destinations where demand outstripped supply (for example, London, Helsinki and Budapest) the average price of serviced accommodation was higher and therefore savings lower when compared against the average price for hotel accommodation according to the HRS booking portal. However, it was not the only factor.
The digressive pricing model (the longer the stay, the lower the rate) used by most serviced accommodation suppliers in combination with supply and demand at locations, were the main drivers for cost savings. Hence, even at ‘megacities’ (like New York, Tokyo, Singapore and Sydney), it was still possible for service accommodation to outperform hotels to deliver savings –albeit to a lesser extent.
Nonetheless, even at the lower end of the spectrum, small savings can have a big impact on a corporate budget that has many traveller employees making frequent business trips.
Read the full report on the Acomodeo Blog.