The serviced apartment sector, although present throughout the global accommodation markets, has different degrees of expansion and development, which are dependent on regional standardisations, the supply and demand dichotomy, and the legislation in place. However, regardless of the fragmented nature of the sector, “the global serviced apartment industry is continuing to mature, albeit at different rates in different places across the regions” writes Mark Harris from the Travel Intelligence Network inthe latest Global Serviced Apartments Industry Report (GSAIR) 2013-14.
North America and Asia
Although it is generally acknowledged that the origin of serviced apartments lies in the US, both North America and Asia have had an operational sector for over 30 years. The maturity of the market in North America has been driven by several factors. “It boils down to the demand for the accommodation – executives travel longer distances, stay away from home for longer periods, and require a home away from home; supply of space for the accommodation – larger scale short-stay accommodation can be offered cost-effectively, and brands which can develop on nationwide referral business,” says Richard Majewski from Essa Consultancy for Serviced Apartments.
In South America the serviced apartment sector only started developing about 5-7 years ago, so it …read more
Source: IPIN Live