The generation of young professionals and tech-savvy millennials is transforming how we live, work, and travel. These people are also changing how businesses operate these days.
They’re doing this by demanding transparency and staying connected to friends and family. This, in turn, plays a big part in making independent living more affordable.
- These trends are having a significant impact on the demand for serviced apartments and corporate housing. There has been a steady increase in demand for these services over recent years.
According to data from the American Hotel & Lodging Association (AHLA), about 44% of travelers stay in hotels each night. In addition, the number of hotel guests has grown annually over the last decade.
This is mainly due to business travel. In addition, the rise of collaborative working spaces means that corporations are no longer restricted to providing accommodation only at hotels.
Corporations can now offer serviced apartments as an alternative option for their traveling employees.
What is the Difference Between Serviced Apartments and Corporate Housing?
While both serviced apartments and corporate housing are designed to offer temporary housing, they are not the same services. First, serviced apartments are mostly designed for leisure travelers visiting a city for work or pleasure.
Corporate housing is usually designed for business travelers who need temporary lodging. This is usually in a city where they have no immediate ties. Companies that have employees visiting the city regularly might provide corporate housing.
Serviced apartments are similar to hotels, but they offer additional services that hotels do not. These include 24/7 concierge service, maid service, and more space than a hotel room would have.
Many serviced apartments also feature furnished kitchens. This can be useful for business travelers who need a place to hold meetings or make meals.
Why Do Millennials Prefer Serviced Apartments?
Serviced apartments are often more affordable than hotel rooms. This makes them a great option for budget-conscious travelers. A serviced apartment is a great option that won’t break the bank.
This is especially so in the larger and busier American cities. Finding accommodation in some more populated areas of the US might prove to be a herculean task.
As a result, many turn to corporate housing in Boston, New York, Los Angeles, or other big cities. The wait can take anything from weeks to months and these corporate lease apartments are cheaper than staying in a hotel for that duration.
These cities are all thriving business hubs, and as such, you’ll find a lot of corporate apartments in them.
2. Encourage Independence
Corporate or serviced apartments allow millennials and travelers, in general, to maintain a sense of independence. Not everyone is comfortable sharing a house or staying with friends or family.
As a result, people will rather stay on their own in corporate or serviced apartments. However, they can enjoy the benefits of communal living space depending on the type of accommodation they choose.
3. Feels Like Home
Private apartments also give travelers the chance to decorate and style their living spaces. This will allow them to feel more at home away from home.
These apartments offer more space and privacy than hotel rooms. This is important, especially if your stay lasts more than a few days. They also offer a range of amenities that can make your stay more comfortable and convenient
4. Improved Workplace Relationship
Spaces in serviced apartments might include communal kitchens and living rooms. These provide the perfect opportunity for colleagues staying together to improve their work relationship.
This is important because a good relationship between colleagues will enhance individual productivity. This might lead to the transfer of knowledge and skills. As a result, they will be able to perform well working together, thereby improving collaboration.
5. Enhances Social Life
Serviced apartments also make it easy for travelers to be social. Many offer 24/7 access to amenities like a fitness center, a rooftop pool, and a lounge. These will help them to make new connections with people from different parts of the world and increase their network.
Why do Corporations Provide Corporate Housing?
For businesses, corporate housing provides a flexible solution for accommodating employees who travel regularly. There’s no need to book blocks of hotel rooms that might go unused.
That’s because they can now offer private apartments where their employees can stay long-term. This helps businesses save money and reduce their carbon footprint.
Corporate housing also allows businesses to provide a more personalized experience for their employees. They can ensure that their employees are comfortable while away from home.
This is because corporate or serviced housing provides amenities such as a kitchen or a laundromat. These help businesses retain their employees and give them one less thing to worry about.
What’s Next for Corporate Housing and Serviced Apartments?
The future of corporate housing and serviced apartments looks bright, with the industries set to grow significantly in the years to come. One of the factors driving this growth is the increasing number of companies focusing on employee experience and well-being.
In fact, corporate housing providers that also provide concierge services are expected to grow exponentially by 2025. This will likely be driven by an increase in remote working. Also, the need for companies to accommodate their employees no matter where they are located adds to it.
Hosting an event, either for yourself and your employees or for clients, can be a great way to create a memorable experience for all involved. Serviced apartments are an ideal setting for events such as conferences and business meetings.
These apartments can also be used for team-building exercises. They provide a cost-effective, customizable experience that can be tailored to suit each client’s needs.
The rise of the digital nomad and the transformation of the workplace are transforming the way we live, work, and travel. Travelers demand more flexibility and control over where they stay. They also want flexible ways to experience new cities and cultures.
Collaborative working spaces are also attracting more people who are choosing to work remotely. This means that companies are no longer restricted to providing “hotel-like” accommodations for their employees.
Serviced apartments and corporate housing can offer a more personalized, flexible experience for both leisure and business travelers.