With relocation costs expected to top $97,000 or more for homeowners and $24,000 for renters, it’s no wonder cost containment is a top priority for most corporate mobility programs. Relocation, while essential for business growth, can also come with a hefty price tag. Relocation managers know all too well the juggling act of keeping budgets in check while ensuring employees feel right at home.
When reviewing possible solutions to the rising cost of relocations and the cost of relocation failures, corporate housing has quietly emerged as the clear frontrunner, catching many by surprise. Here are five ways to directly impact your company’s bottom line with corporate rentals.
1. Look Beyond the Nightly Rate
Nightly room rates tend to fluctuate according to occupancy levels, seasonality and location. Hotel room rates in major U.S. cities typically fall between $200 and $300 per night, with an average of $260. AirDNA reports that short-term rentals average $315 per night (lower for longer stays). If you’re relocating employees for an extended period, those costs can skyrocket. On the face of it, corporate housing nightly rates aren’t too different. While The Corporate Housing Providers Association (CHPA) 2017 study put the nightly rate around the $160, while more current sources say it’s likely upwards of $250. But that doesn’t include Airbnb’s added cleaning and service fees and the various hotel taxes that jack your bill way up.
Instead of fixating just on the nightly rate, look at the overall costs. Corporate rentals provide comfortable, fully furnished accommodations at a significantly lower overall cost—no hidden fees and no surprises.
2. Cut Down on Expensive Perks and Reimbursements
When employees stay in hotels, they typically receive daily allowances for meals, laundry, and other expenses. And while the fluffy hotel towels might be nice, those little perks are costly and stack up quickly. According to the Global Business Travel Association, the average per diem for business travel is around $144 a day for meals, laundry, and more. Ouch!
With corporate rentals, your employees can whip up home-cooked meals in fully equipped kitchens and do their laundry without a second thought at a fraction of the cost. By switching to corporate housing, companies can cut down on those incidental costs, saving hundreds or even thousands per employee over the course of a relocation.
3. Family Friendly Accommodations = Lower Travel Costs
Relocations can be a family affair. It’s not uncommon for spouses, kids, and even the family dog to tag along for the ride. According to a survey by the Employee Relocation Council (ERC), 47% of employees relocating for work reported that family accommodations were a top priority during their move. The issue? Accommodating a whole clan in a hotel can quickly turn into a logistical nightmare and a financial headache.
Corporate rentals are designed for longer stays and often feature multiple bedrooms and spacious living areas. This makes them the perfect solution for employees who want to bring their families along for the ride. Not only do you save on travel expenses, but you also keep everyone happily together under one roof, avoiding the chaos of juggling hotel bookings and all the bizarre rules that have become famously associated with many Airbnbs.
4. Save EVEN More with Annual Contracts
If your company is in the business of relocating employees regularly, consider locking in those savings with an annual contract. By committing to a specific spending amount, you may be able to negotiate discounts of up to 20% off corporate standard rates, depending on annual volume.
This not only locks in lower rates but also gives companies the flexibility to plan for future relocations without the hassle of renegotiating prices each time. Think of it as a corporate relocation subscription service—commit to spending a certain amount, and the more you relocate, the more you save.
5. Keep Your Employees Happy
The cost of a failed relocation can be staggering. When employees are dissatisfied with their accommodation or the relocation process, productivity drops, and morale suffers. In some cases, employees request to return early, leaving companies to pick up the pieces and absorb the costs of both the failed relocation and the replacement process.
Corporate rentals help mitigate these risks by providing a more stable, comfortable environment. A satisfied employee is a productive employee, and corporate rentals foster a sense of home—an invaluable asset in ensuring a smooth transition. Companies like AvenueWest Global specialize in happy employee relocations — which is why they regularly go out of their way to make sure their guests are connected and cared for from start to finish.
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In the competitive landscape of employee relocations, corporate rentals aren’t just a smart choice—they’re a game changer for your bottom line. With lower overall costs, reduced incidentals, and family-friendly accommodations, corporate housing allows companies to save significant money while keeping their employees comfortable and happy.
AvenueWest Global is here to help you save money and resources while providing a smooth relocation experience. Reach out today and discover how we can support your relocation needs.
1-800-928-1592
Global@AvenueWest.com
