The corporate housing industry is an ever-evolving field that caters to the needs of business travelers and people who are relocating or between homes. In recent years, there have been significant changes and trends that have reshaped the industry. Here are five prominent trends to watch for in the corporate housing industry in 2023 and what it means for property owners in the corporate housing space.
The COVID-19 pandemic has significantly impacted the way we work. Many businesses have shifted to remote work in the interest of safety, which has in turn resulted in many companies preferring to book longer-term rentals for their employees who work remotely. This is good news for investors who have rental properties on the market. Business travelers are also looking for homier, more peaceful environments when they travel for business….and they won’t find that in a hotel.
More Demand, Higher Hotel Rates
Demand for short-term housing is on the rise. How do we know?
- 78% of travel managers say their companies will be making more business trips in 2023.
- 85% of business travel decision-makers estimate an overall gain in bookings year-over-year.
- 31% of businesses surveyed by the Corporate Housing Providers Association plan to use short-term rental services in 2023.
This presents such an opportunity for property owners who have been sitting on the fence about whether they should enter the corporate housing market. With the supply of short-term housing down and hotel industry rates expected to climb from 4-8.5% across urban areas, the timing has never been better to reap the rewards of playing in this space. If you’ve been renting your property on your own, the experience in corporate housing is entirely different. At AvenueWest, we handle everything from marketing, finding a tenant, property maintenance, guest experience, rent collection, bill payments, all paperwork, emergency services…you name it. Your guests will only deal with one person – us. You, on the other hand, get to earn more while doing less.
To stay competitive, trends to optimize the check-in experience with mobile keys, allowing for contactless payment and offering VR property tours have become the new normal across the hospitality industry. Smart home technology is also gaining popularity, allowing guests to control the temperature, lighting, and other features with their smartphones. While it might be a struggle for independent property owners managing their own rental to keep up with the pace of change in technology, it’s much easier for a large corporation like AvenueWest to adopt and implement these changes.
Sparked by the demand resulting from the pandemic, businesses are now more concerned about the safety and health of their employees when they travel. As a result, many providers have implemented enhanced cleaning protocols and contactless check-in procedures to minimize the spread of the virus. Guests may also find hand sanitizing stations and other safety measures in place to provide a more comfortable and safe stay. These are also more common in the corporate housing space than in homeowner-managed systems like Airbnb and Vrbo.
Going Green & Peaceful
Guests have been asking for it, and the industry is listening. Sustainability is another trend that has impacted the corporate housing industry. Many corporate housing providers are looking for ways to reduce their environmental impact. For example, some providers are using energy-efficient appliances and installing smart thermostats to conserve energy. Additionally, some providers are implementing recycling programs, using eco-friendly cleaning products, and reducing water usage to minimize their environmental impact. Moving trends also indicate that people are seeking stability and affordability in communities that are less hectic and more environmentally friendly.
The corporate housing industry is evolving to meet the changing needs of business travelers.
To learn more about how AvenueWest is responding to these changes or to inquire about how much more you can earn by converting your rental into corporate housing, call us today at:
1-800-928-1592 or email us at Global@AvenueWest.com.