The changing dynamics of serviced apartment segment in Asia Pacific

With strong economic growth in China, India and South-east Asia, improved infrastructure, high use of smartphones and increasing internet penetration, business and leisure travel has seen a huge growth in Asia Pacific region.

First things first! Let’s have a quick look at some statistics from the 5th Global Serviced Apartment Industry Report 2015 – 2016 which shows 14% growth in serviced apartment supply chain globally, exponential corporate, relocation and online demand and increasing investor interest in the sector.

– 748,437 serviced apartments worldwide operating in 9,875 locations

– Inventory up 14% year-on-year and 80.1% since 2008

– Apartment usage for assignment/project work growing in 72.73% of companies

– Distribution widening – 75% of operators now receive bookings from OTAs

Asia Pacific contributes to these global figures in its own way. With strong economic growth in China, India and South-east Asia, improved infrastructure, high use of smartphones and increasing internet penetration, business and leisure travel has seen a huge growth. As business opportunities have increased rapidly in last couple of years, demand for serviced apartments have also doubled. One may ask why? While hotels provide comfortable rooms and good service, the benefits of serviced apartments include the comfort of more space, privacy, option to cook, flexibility, cost of stay as well as the overall environment which is more like a ‘home away from home’.

Source