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ARRIVALS<br />
SPEAKING OUT<br />
Serviced apartments<br />
<strong>The</strong> Holy Grail of online booking<br />
<strong>The</strong> serviced apartment sector is booming<br />
but live online booking is still a rarity.<br />
Jo Layton of CAP Worldwide explains why<br />
When I ask a buyer what they think utopia<br />
looks like in the extended stay sector, the<br />
answer is often the same: “it’s when a<br />
traveller can view and book their serviced<br />
apartment online, without the intervention<br />
of an agent or consultant”.<br />
However, the desire of the buying<br />
community to book apartments just as they<br />
book hotels is yet to be fully achieved by any<br />
platforms currently available on the market.<br />
I often compare booking apartments online<br />
to booking a meeting or event online. Both<br />
are complex transactions that require lots of<br />
research. Bookers need to understand the<br />
options available, the location, transport,<br />
parking, terms and conditions and more.<br />
And there’s even more to it for apartments:<br />
how to access the unit on arrival, the room<br />
sizes, the particular facilities, views, the local<br />
community, proximity to schools, transport<br />
and more. For a guest staying in a serviced<br />
apartment for several weeks – or months –<br />
the minutiae really matters. <strong>The</strong> details are<br />
all paramount to achieving a successful stay<br />
for the guest, and that’s before you include a<br />
review of the lease and the (sometimes very<br />
confusing) terms and conditions.<br />
If you are booking a hotel room for a<br />
couple of nights and the room doesn’t quite<br />
meet your standards or your needs, it’s<br />
annoying, but if you’ve booked a stay for 28<br />
nights or more and there is no option to<br />
change it on arrival it is a different story.<br />
On the other side of the booking, meanwhile,<br />
the operator is looking to achieve the<br />
optimum length of stay for their units. For<br />
the majority of providers, this would be over<br />
seven nights and ideally a minimum of 30<br />
nights-plus. <strong>The</strong> small gaps in between are<br />
then plugged by loading this distressed<br />
inventory online – but this kind of business is<br />
more expensive to manage for operators in<br />
terms of both administration and servicing.<br />
Add in the fact that online distribution costs<br />
for apartment operators can be high – and<br />
without any guarantee of securing business<br />
– and it becomes clear why online booking<br />
options are currently limited, perhaps in the<br />
best interests of both guests and operators.<br />
Bridging the gap between hotels and longstay<br />
apartments is the growing aparthotel<br />
sector. <strong>The</strong>se properties offer online booking<br />
and amenities such as staffed front desks,<br />
cafés and communal areas, plus, in the units<br />
themselves, basic kitchen facilities and more<br />
If you book a hotel<br />
for a night and it<br />
doesn't meet your standards<br />
it's annoying, but if you've<br />
booked an apartment stay for<br />
28 nights it's a different story”<br />
living space than a hotel. <strong>The</strong>y are usually<br />
found in city centre locations and guests also<br />
have the option to cancel or change a<br />
reservation at late notice.<br />
In contrast, most serviced apartment<br />
providers have built their models in primary<br />
and secondary residential areas, provide<br />
more living space, weekly housekeeping,<br />
limited facilities and more stringent terms<br />
and conditions for cancellations or changes.<br />
<strong>The</strong>y are very different business models<br />
and, for travel managers and guests alike,<br />
require different approaches. It is difficult to<br />
build a comprehensive global extended stay<br />
programme that satisfies all stakeholders,<br />
with just aparthotels.<br />
<strong>The</strong> expectations of bookers must be<br />
managed as the reservation experience is<br />
often traded off, wrongly, against suitability<br />
and value. <strong>Travel</strong>lers need to be protected<br />
from the pitfalls of instant gratification, but<br />
operators nonetheless need to make their<br />
apartments as accessible as possible.<br />
<strong>Travel</strong> programmes that incorporate both<br />
options can of course be built, and that is<br />
when you will benefit from working with an<br />
informed agent (like us!) who can help<br />
corporates build a solid programme.<br />
JO LAYTON<br />
Jo Layton is Director of CAP<br />
Worldwide Serviced Apartments.<br />
She formed the company in <strong>2019</strong><br />
after spending nearly 20 years in<br />
the sector. Jo and her leadership<br />
team have identified the<br />
gaps in current global<br />
programmes and have<br />
built CAP to bridge them.<br />
THEBUSINESSTRAVELMAG.COM<br />
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