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The Business Travel Magazine Aug/Sept 2019

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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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