The future of business travel seemingly tilts towards extended stay accommodations. From global business hubs like London, Paris, and Amsterdam to Barcelona and Copenhagen, the trend is clearly visible.
The increase in remote work has fuelled this shift, in tandem with long-term corporate projects/relocations, and the desire for cost-effectiveness.
Reports also indicate how the global extended stay segment is forecasted to grow to $148.76 billion by 2034 from $60.94 billion in 2024, thereby posting CAGR (compound annual growth rate) of 11.80%.
Let’s uncover this trend below.
Key Reasons for the Growing Popularity of Extended Stay Accommodations
Here are some of the reasons behind the increasing popularity of extended stay accommodations among business travelers.
- Flexibility and growth in remote work– Digital nomadism and remote work have both gained traction over the years. This has led to a higher need for flexibility among corporates who desire well-equipped and productive spaces when working from various locations. Many companies now place employees in extended-stay, remote-work ready apartments in Copenhagen that include fast Wi-Fi, dedicated work desks and flexible lease terms – ideal for multi-month projects.
- Corporate requirements– More companies are choosing extended stay accommodations for employees working on long-term projects, relocation, or training. This is because these units offer higher cost savings in comparison to regular hotels, while offering a better quality of life.
- Affordability– Extended stay accommodations offer special discounted rates for longer tenures, while offering amenities like kitchens (which reduce the need to dine out each day). Extended-stay options often include utilities and housekeeping in one invoice; many companies booking multi-weekcorporate stays in Amsterdam report lower total lodging costs than hotel alternatives.
- Home-like comfort and amenities– Extended stay accommodations come with separate living and dining spaces, along with comfy bedrooms, well-equipped kitchens, and on-site laundry and housekeeping facilities. This makes them ideal for longer stays in major cities.
- Growth in Bleisure stays– More travelers are now fusing work with leisure and personal time. This has made global travel more hybrid in nature, with more guests willing to explore various destinations while getting work done.
Corporate Travelers Embrace the Right Mix of Comfort & Convenience
Extended stay accommodations are fast becoming a preferred choice for business travelers owing to several factors. For starters, corporates are embracing cost savings for longer stays, along with all-inclusive rates which include utilities, housekeeping, laundry, etc.
These are otherwise costly add-ons at regular hotels. At the same time, they have flexible short and long-term leases, helping corporates stay as long as they like, without the rigidity and limitations of hotels. Most importantly, they come in varied configurations suited to diverse travel groups. You do not have to book multiple hotel rooms for your stay, which may prove costly otherwise.
At the same time, these extended stay accommodations offer more space in comparison to regular hotels, particularly with their separate living, dining, and sleeping areas. Home-like comfort and privacy combine with laundry, housekeeping, self-catering and other facilities for the perfect experience.
Corporate guests also appreciate the tailored amenities like dedicated workspaces or work desks, along with high-speed Wi-Fi, flat-screen televisions, and more. Many apartments also come with on-site amenities for business travelers like concierge services, receptions, conferencing facilities, meeting rooms, lounges, pools, fitness facilities, etc.
As can be seen, extended stays are more budget-friendly and flexible for companies, while the food and laundry costs are also lower for guests. The quality of life automatically improves due to the higher space and comfort, while tranquil working environments with reliable Wi-Fi also ensure a better and more productive experience.
Wide Range of Choices for Corporates
With the boom in extended stay accommodations, there has been a proliferation of long-stay apartments across leading global cities, as mentioned earlier. This has naturally given corporates and companies more choices in terms of their housing options.
Another benefit that has resulted from this growth is that these are ready-to-move in apartments containing everything that individuals or families need. There are no hassles pertaining to arranging furnishings, essentials, appliances, etc.
Several reputed providers and platforms have also come up in the segment, including the likes of TheSquare and others. This has given access to verified listings with special corporate packages, flexible leases, spacious and tailored units for business travelers, and seamless standardization.
What does the future look like? There should clearly be steady demand for extended stay accommodations among business travelers in the next few years, especially with relocations, remote work, and digital nomadism here to stay.
