Growth of serviced apartments on the rise
View(s):The travel industry has boomed in the recent past, thanks to the rise of budget airlines and accommodation options as opposed to say, a decade ago. The latter has expanded into an industry of its own and along with hotels, villas, bungalows and chalets, now serviced apartments can also be chosen from the list.
Analysts say that serviced apartments seem to be effectively pushing up demand for more conventional accommodation options. They say that serviced apartments have been shown to be a more conducive environment for city workers, creating some of the comforts and space of a home.
Today, Airbnb is one of the foremost providers of this service. Founded in the year 2008, it started with the simple notion of connecting those who have a space to let, with those looking for a space to rent. “It was a well-matched business model; one that has taken the world by storm. However, hotels are bearing the brunt of this change and heavily so with figures showing 25 per cent of touristshave stayed in non-hotel type accommodation in Sri Lanka in the past,” Daham Gunaratna, Managing Director Lanka Property Web (Pvt) Ltd, said.
The serviced apartment industry took off in Sri Lanka in the early 2000s with the owners renting out their apartments, like Crescat Apartments. This trend has continued to apartment complexes that have spawned since then, with currently over a 1000 apartments for rent in Colombo on property site – LankaPropertyWeb.com.
Serviced apartments come complete with most amenities one might require from hot water to air-conditioning. They are provided fully-furnished and have a kitchen/kitchenette and living space.
“Available in different sizes and short-term/long-term leases based on your requirements, they offer a lot more privacy and freedom than hotels. Some of the more elaborate options are housed in complexes equipped with a pool, laundry room, gym and even house-keeping services. Here are a few reasons why people opt for serviced apartments over hotels,” Mr. Gunaratna said.
Businessmen and corporates in general were responsible in driving demand for serviced apartments as some of the primary users of this service. This is because cost-wise, serviced apartments work out to be cheaper than hotel stays, according to Mr. Gunaratna. “For corporates who are constantly immersed in travelling for business, this is a far more affordable option. Having said that costs are attractive even for leisure travellers as prices are fixed,” he said. Also since one has the flexibility of using the kitchen without having to resort to expensive in-room dining, it has become a lucrative choice, he added.
An analyst said that a big segment that could start using serviced apartments will be visitors for medical tourism. There could be players who will build serviced apartments next to large hospitals to cater to that kind of demand.
“When you book a hotel as a group, there is always a limit on the number of occupants in the room. Not so with serviced apartments. You can fit everybody into one space which makes communication and spending time with each other much easier. Instead of having to hop back and forth from one room to the next, everybody is in one place. So there is definitely more flexibility in terms of your living arrangements,” Mr. Gunaratna added. Additionally, serviced apartments have separate sections so you can spend some time on your own when you need to.