The speed at which the serviced apartment industry is evolving was the key topic at April’s Serviced Apartment Summit Americas event in New York, and how to remain relevant.This article outlines key discussions from the event and quotes among others ASAP business partners and members STR Global, Cheval Residences, BridgeStreet Global Hospitality,
Key headline topics from the discussion were:
- extended stay is growing stronger, with an inventory accounting for around 8% of the hotel industry in the US, and 75% occupancy. New supply is a concern in New York, as is an ever-growing list of brands throughout the industry as guests struggle to find the property that speaks to them.
- serviced apartment and extended stay properties must work for loyalty. Many extended stay or serviced apartment properties commonly pick up guests for 30 nights or more, which can be bad for building loyalty. Guests with apartments tend not spend time in the property’s public areas, so fewer touchpoints form naturally – unlike in the hotel sector where guests may take breakfast a pass through reception. This can be mitigated by property management forming a relationship with guests at the outset, both to foster loyalty and to head off negativity if issues occur within the property during a lengthy stay.
- Airbnb’s data remains mysterious, although demand for this segment of travel is reportedly up 121.5%. The short term rental market is growing slowest in San Francisco and New York partly due to those markets’ early adoption of Airbnb, despite subsequent regulation. Airbnb is also getting into loyalty by partnering with tertiary programs such as American Express. Regulation has no effect on demand.