What will 2025 have in store for extended stays?
Serviced apartments have steadily risen in popularity among investors. The sector’s resilience has boosted confidence, and as an asset class, it often delivers higher profit margins than traditional hotels. Growing consumer awareness, partly driven by platforms like Airbnb, has also contributed to the increasing appeal of serviced apartments to leisure travellers. With tighter regulations on short-term rentals across Europe, it’s anticipated that much of the demand previously generated by Airbnb will shift toward professional extended-stay products. As the customer base expands, operators are adjusting to meet evolving expectations.
For example, Sabah Mehta, solutions architect at Mews, reports that with the growing demand for flexible stays and the blending of short- and long-term trips, guests are seeking “all-inclusive experiences.” Decisions are now being influenced by the amenities available, such as communal lounges, daycare services, and more. Mehta suggests that operators should track total guest spending to personalize the experience, which will help drive guest retention in the future.
While amenities play a role in encouraging longer stays, booking trends indicate a decrease in the average length of stay. The latest SilverDoor Q4 2024 report reveals a 64 percent year-on-year increase in inquiries for stays of less than seven nights globally in 2023-24. Similarly, inquiries for stays under a month rose by 17 percent during the same period. This shift in demand reflects corporate managers seeking cost-efficiencies, alongside the expansion of the global serviced apartment supply.
As the customer base for serviced apartments expands, it’s crucial for operators to stay relevant. The modern corporate traveler – defined by their tech-savviness, efficiency-driven approach, and focus on work-life balance – remains the primary user of serviced apartments. The latest GSAIR report highlights relocation as the largest growth market. However, the report also notes a 12.5 percent drop in the use of specialist serviced apartment agents, while agents now make 72.73 percent of bookings directly with the property. This indicates a clear demand for direct booking, though the challenge of instantly reserving longer-term accommodations (especially when contracts are involved) persists due to the complexity of pricing strategies.
To meet these demands, property management systems are adapting their product offerings to better accommodate blended stays, and as technology evolves, so do digital tools. Features like live availability and instant booking are being gradually implemented, offering increased convenience and flexibility for the end user.
