Serviced apartment sector not mature enough for GDS

Serviced apartment sector not mature enough for GDS

The serviced apartment sector is not mature enough to be featured on GDS systems despite its growth in recent years, a new report said earlier this week. Inconsistencies in the market, such as a lack of grading and brand recognition, have caused the sector to suffer in distribution, as well as insufficient supply.

“Attempts to create a GDS for serviced apartments have foundered on the fundamental issue of recognising an apartment. The lack of brand recognition and inconsistencies between extended stay products doesn’t help matters, and without a classification scheme for apartments the task facing TMCs and leisure travel agents becomes virtually impossible,” The Apartment Service’s Global Serviced Apartments Industry Report 2011-12explained.

“Most operators are only interested in being on the GDS for last-minute sales or to fill gaps in occupancy, and even then the kind of short-stay bookings the GDS deliver are at rates the operator would not want to extend on a regular basis”.

However, the report said suppliers would be more willing to put small allocation on GDS once there are recognised brands and more units within an area and 71% think a global code is feasible. The extended stay and apart-hotel market has grown by 34.1% in inventory compared to last year with occupancy picking up to almost record levels in the last 12-18 months.

Marriott and InterContinental continue to dominate the market with their brands but Pierre & Vacances entered the top 15 this year as the fifth largest apartment provider. Space, the self-catering element and price continue to drive bookings and 90% of operators expect growth next year.

Gary Marshall
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Gary Marshall
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