There are a plethora of accommodation options that are
available nowadays to guests. They can choose from luxury hotels to business
hotels or budget hotels or serviced residences. Since the options are many, guests are often
left with the big decision of making a choice. While the decision might depend
on various factors, like budget, location, occasion etc., there’s one
particular option that is slowly but sturdily climbing the popularity charts-
the serviced residences.
Serviced residences or apartments caters to people looking
for both short as well as long term accommodation. As their equivalent hotels
these too are equipped with all the hotel-like amenities. They stereotypically
provide guest with fully furnished space along with cooking utensils. In
comparison to hotels they are less expensive; benefits include more space and
privacy, ease when travelling with a family, and can save money with cooking
one's own meals. They are mostly spruced
with all the modern comforts one can find in a hotel.
Let’s take a look at how this segment started to gain
popularity. The conception probably first started in the US. It all started
with the progression of business travel and is now gaining repute in India’s
hospitality industry. According to the Global Serviced Apartment Report, there’s
an 80%increse in the number of serviced apartment taking it to a figure of
75000. In the 1990’s there was a lot of international travel that was happening
due to economic liberalization, new set ups and joint ventures. Initially they
stayed at hotels, because the concept of apartment hotels did not exist. Later
when these travel started to become more frequent involving longer duration of
stay, they chose to stay at any of the swelling serviced apartments.
The initial growth of serviced apartments though was driven
by international business travelers or expats, the domestic business travelers
have also backed in strengthening the same. Serviced apartments are gaining
popularity in the urban market like Mumbai, Delhi-NCR, Bengaluru, Hyderabad and
Pune. These segments are also gaining popularity with the leisure segments of
travelers, as they too feel that stay at five-star hotels for longer period can
get very expensive. With serviced apartments one gets the advantage of
reasonably priced accommodation, more space, privacy and comfort of home
cooking your own food. Some of these apartments come with high end housekeeping
services and laundry.
While the Indian market has lot of stand-alone serviced
apartments, many hotels are also launching new properties that would be
launched as serviced apartments. They may be studio rooms or may have anywhere
between one to a three bedroom. Serviced apartments that are managed and
operated by hotel, the guest can enjoy all the facilities that a hotel would
offer them; which include bed & breakfast, household assistance, gym,
conference room and banqueting space. In simpler terms, they offer a home away
from home with tremendous value for money.
Serviced apartments are here to stay and gain popularity. As
of now they have major presence in metros and mini metros. In future their
popularity can be extended to tier II and tier III cities such as Kanpur,
Panipat, Kohlapur, Nasik etc. in many cities many such facilities are being
built to meet the needs of both business and leisure travelers.
- Ms. Bindu Menon
Sr. Faculty, INLEAD
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