Serviced apartments up to 55 percent cheaper than hotel rooms: Acomodeo presents new apartment price radar

Frankfurt am Main/Munich (w&p), June 20, 2018 — Serviced apartments are significantly cheaper than hotels: This is the conclusion of a recently published comparative study for long-term stays by Acomodeo. 

The study results were discussed and verified with industry representatives during the first Serviced Apartment Sales Bootcamp (SaSaBoo 2018) organized by Acomodeo in Frankfurt am Main at the beginning of June. According to the study, guests from the DACH region saved an average of 32 percent when staying in serviced apartments in contrast to staying in a regular hotel in 2017. For the analysis, Acomodeo examined apartment prices from around 30 cities and compared them with the average HRS hotel rates. The company recorded the greatest savings with 55 percent for Zurich, followed by Dusseldorf with 39 percent, Cologne with 38 percent and Dresden with 33 percent. Up to 29 percent savings for guests are possible in Munich, 28 percent in Vienna and 25 percent in Stuttgart.

The declining-balance model for serviced apartments is decisive for the price comparison, the company said during the publication of its figures. This reduces the price per night as the length of stay increases, giving long-term bookings in serviced apartments a competitive advantage over stays in a regular hotel.

Eric-Jan Krausch, Managing Director of Acomodeo, feels validated by the current study: “As a product, serviced apartments are neither represented in the company’s internal guidelines nor displayed in existing booking systems. This is why far too many business travellers are still opting for the uncomfortable and usually more expensive alternative of booking a hotel room. With our price analysis, we now present companies with a powerful argument for the rapidly growing segment of serviced apartments”.

Serviced apartments are the proverbial golden mean between the freedom and comfort of a furnished apartment and the security and service of a hotel stay. The advantages include a fully equipped kitchen or kitchenette as well as a separate living and sleeping area — usually with desk and WiFi. This is why the concept is becoming more and more popular, especially with long-term guests.

“Despite pre-negotiated rates with apartment providers, corporate customers always spend more than they need to,” Eric-Jan Krausch continues. “This is partly due to a lack of overview of the fragmented market and partly to a lack of understanding of long-term stays. Lastly, company booking portals only display classic GDS and hotel offers that are not designed for apartments or long-term rates. For this matter, we support customers with our portal, pre-negotiated rates and an infrastructure specially designed for serviced apartments”.

The market for serviced apartments has grown continuously over the past 15 years. The industry registers more than four million overnight stays in Germany every year. This number continues to rise as more and more business travellers experience the benefits of staying in serviced apartments and travel managers increasingly recognize the enormous savings potential. With the progressively strong segment of so-called budget providers, the established apartment operators are facing serious competition, which, above all, are raising the price pressure in the market. The Acomodeo price radar will therefore also examine the trend for price development in the future.