Corporate travel managers are now seeing value in the once-overlooked serviced apartment accommodation sector and are becoming an increasingly important part of the sales mix, according to Quest.
Executive chairman Paul Constantinou told Travel Today that, over the years, CTMs have been reluctant to book serviced apartments due to the term’s association with high rise apartments that sprung up in areas such as the Gold Coast during the 70s that were targeted at families.
But that perception is changing, he added.
“It’s a growing segment,” Constantinou said.
“Before corporate travel managers didn’t want to know about serviced apartments – it wasn’t a mature industry.
“We had to basically educate them that it’s not just a bunch of units but a standalone business that looks and feels like a hotel but are actually apartments – they have the space, but they won’t have all the other amenities.”
But he insisted results are now being seen, with the channel accounting for between 25% and 30% of total sales.
Corporate travel managers are now “top of mind” for Quest as it seeks to capture their clientele.
With just “marginal” leisure business, 80% of the firm’s focus is on the corporate traveller. In addition, the firm is focused on building direct relationships with companies with travel needs and targeting the market though advertising in corporate media.
“It’s taken us 25 years to educate the market that this is the product you need when you are staying more than two nights but we’re absolutely starting to see results,” Constantinou said.
