Briefing: Cost and convenience drive serviced apartment bookings

The latest Global Serviced Apartments Industry Report found that overall the price is the primary factor behind the decision to book a serviced apartment or a hotel.

There are variations in offerings across the serviced apartment/ extended stay/ aparthotel sector, but the main drivers for staying in these properties are clear. The report states that the ability to cook their own meals or entertain (71.6%), privacy (66.6%), and the apartment environment (58.3%) are influencing travellers to use serviced apartments.

In this briefing industry experts discuss serviced apartments and their customers:

GSAIR was put together by The Apartment Service, which states that serviced apartments are cheaper by about 15% – 30% than equivalent standard hotel rooms. This price difference makes it the winning option for many travellers. The report also states that 81.48% of travellers who have stayed in a serviced apartment prefer them to hotels.

According to the association of serviced apartment providers there is on average 30% more space in a serviced apartment, although guests forfeit the restaurants and extra communal areas in a hotel. The space allows people to have visitors and the kitchen facilities allow people to cook their own food, which can both save money and make the apartment feel more homely. This is especially appealing to people who need an extended stay and also to families with children who need the room and the convenience of a more home-like space and the ability to dictate the menu and meal times themselves.

Apartments are also popular with business travellers and are often used by companies in travel policies as a cost efficient option for employees’ business travel. According to Business Travel Insights 2015 nearly 75 percent of travel policies include serviced apartments as an approved option. One in every eight of corporate travel buyers surveyed for the Business Travel Show’s annual survey booked more serviced apartment accommodation in 2014 than 2013.

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Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Understanding brand power in a new landscape

What does it mean to be a hospitality brand in 2015? Travellers today will not be as influenced by a brand name as they once were when booking accommodation. According to Mintel Group, 48% of guests will not visit the hotel’s website before arrival, and 79% see price as a key factor when choosing a hotel. However strong brands in the industry are still growing.

These videos look at the way new brands are developing, how powerful brands are staying relevant, and what might happen with brands in the future:

In todays’ hospitality landscape technology has changed distribution forever, given independents more power and has sparked the emergence of new brands.

There is some debate over the possible consolidation of brands in the future as discussed in the above videos.  At the moment more and more brands are being created, often within existing brands, to serve new markets.

In other industries the power of the brand is still immensely strong particularly in the technology industry. Apple currently tops Forbes list of The World’s most Valuable Brands, with a brand value of $145.3 Billion. Microsoft, Google and Coca-Cola and IBM make up the rest of the top 5.

The MKG group’s Hospitality database shows that in January 2015, IGH was the top ranked Hotel Brand. It had 710 295 rooms and a growth of 3.4% on 2014. Hilton and Marriot were ranked 2nd and 3rd and showed growth of 5.4% and 5.9% respectively.

A survey from BDRC found that 42% of European leisure travellers rate review sites as important when selecting a hotel for leisure. In comparison 36% rate hotel brands and important. BDRC also found that leading brands can still command a higher price than unknown brands, with an uplift of €26.98 in the luxury market.

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Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Hotels invest in innovative design

Last month IHG announced plans to open a new Hotel Indigo in The Sustainable City (TSC), a new large scale community development in Dubai. The city is intended to have the highest sustainability standards and the new Hotel Indigo will match this with a building designed to recycle all waste water and use 100% solar power. Also in May an innovative hotel design Snoozebox won the Good Design Award Trophy in the Architectural Design category at the Good Design awards in Sydney.

In this briefing four experts discuss the value of innovative design:

Great design ideas are helping hotel companies modernise, differentiate, increase sustainability, and tap into new markets.

Snoozebox is a self-contained portable hotel which can be set up at events and festivals as an alternative to camping. Each room has an ensuite wet room bed a TV and wi-fi. Each pod room is 7.5 square metres. Snoozebox is providing accommodation at many of the festivals around the UK this year including Glastonbury.
IHG’s Hotel Indigo brand has been around since 2004, it is focused on design with each hotel intended to reflect the area it is in and look like a boutique hotel despite being part of a brand.

CitizenM is another brand hinged on design. Its hotels incorporate bright colours, modern style furniture, ‘luxurious living room style lobbies’ and a 24hour canteen and bar to appeal to modern travellers and distinguish itself from more traditional hotel design.

The Good Design Awards is an annual international event which covers design in all industries. The European hospitality industry also has its own European Hotel Design Awards. Last year the wellness hotel the Lanserhof Tegernsee, Marienstein, Germany won the European Hotel Design of the Year Award at EHDA, and The Edible Hotel by Dexter Moren Associates won Tomorrow’s Hotel for a design with an open plan lobby, an edible wall, and an aquarium.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do so here. It’s free.

Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: High staff turnover is costly for hospitality businesses

A new report from Deloitte, Hospitality 2015 – Game changers or spectators, found that employee turnover in hospitality can be as high as 31% and may increase further as the recession is left behind. This is nearly double the average rate for other industries and can be expensive for businesses. So how can hospitality businesses hold on to valuable staff for the long term?

In these videos hospitality experts discuss staff retention:

Staffing costs account for a tremendous proportion of hotel operation costs. Deloitte’s report states that, ‘An average hotelier spends 45 percent of operating expenses and 33 per cent of revenues on labour costs.’ High turnover rates cause extra costs in recruitment and training. According to the report 52% of the cost of replacing staff is productivity loss and 14% is orientation and training.

The report shows that the top barriers to retaining employees are lack of compensation increases and excessive workload. At entry level, hospitality jobs can typically have somewhat irregular hours and fairly low pay and can attract younger workers who may not considered hospitality a long term career. However hardworking, happy and engaged staff are essential for the smooth running of a hotel and the longer staff stay in their roles the more they will have to offer the company.

In order to impress guests companies need staff across the business who understand the industry well and are able to represent the brand at the level expected. It is well worth focusing attention on giving staff a good experience so that they want to perform their best.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do so here. It’s free.

Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

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