International delegates debate one of the hospitality industry’s hottest sectors at the inaugural Serviced Apartment Summit in London

More than 200 delegates from as far afield as Spain, France, the US, Italy, Dubai and Saudi Arabia gathered at the Andaz Liverpool Street today for the first Serviced Apartment Summit.

A comprehensive agenda covering supply and demand, investment, design, online marketing, OTAs  and mixed-use development provoked lively debate but all the delegates present shared a sense of excitement about the sector’s bright future.

Sean Worker, CEO of BridgeStreet Worldwide said the sector has significant room for growth and had a “$10bn to $15bn opportunity” for future expansion. He also stressed the need for “standardisation and a code of conduct for what is still a fragmented industry”.

Mark Harris of the Travel Intelligence Network revealed figures from his research which measure the serviced apartment sector at around 650,000 units in 9,000 locations worldwide.

“The serviced apartment industry is on the cusp of big things but a tremendous amount of education is needed if the potential is to be realised,” he said.

Emphasising the importance of the corporate travel market to the serviced apartment sector, Harris said that usage of serviced apartments by UK companies has grown 86 per cent, with 60 per cent of UK corporate travel policies including serviced apartments, a figure which rises to 77 per cent of TMC-managed accounts.

Arlett Oehmichen of HVS London revealed a trend for smaller units which maximise available space and allow operators to offer lower prices while imrpving margins.

‘Many new extended stay properties now offer slightly smaller rooms, allowing pricing to come down, which has been positively accepted by guests. We have already seen a trend for aparthotels to increase the number of studios,” she said.

In a session on social media, David Taylor of 2010media said all aspects of a brand’s online presence need to be integrated, rather than working in silos. An effective mobile site is also crucial, said Taylor, stating that 80 per cent of Tweets come from mobile devices, and 50 per cent of Facebook usage.

Interviewing a panel of industry leaders, Russell Kett of HVS suggested that operators need to look to the future of home living for inspiration in terms of design and specification.

Another lively debate throughout the hospitality sector – working with OTAs was discussed at length. Ricky Kapoor of Holyrood Serviced Apartments in Edinburgh said: “Relationships with OTAs should be partnerships – work with them and they can bring you business that you wouldn’t otherwise get, and which is well worth the commission the OTA takes.”

Valerie Dhieux of Frasers Hospitality said: “Have a good look at how the OTAs present your property in terms of images and text, and try to replicate it on your own website, along with making the booking process on your own site and quick and easy as possible. It will bring you more business.”

Event organiser Piers Brown said: “We’re delighted with the way our first event has gone. It’s clear the serviced apartment sector is an exciting space with tremendous potential for growth. From listening to the sessions today and talking to all the leading sector players who are here today, the buzz and excitement about the sector is palpable, and we look forward to staging a bigger and better event next year.”

Source: www.servicedapartmentsummit.com
Subject: Serviced Apartment Summit London