buying power

Steps are being taken to help buyers choose the most sustainable serviced accommodation and drive change

Amatrix to help buyers compare the sustainability credentials of serviced accommodation was one of the initiatives shared with corporate travel buyers at a Business Travel Lunch Forum, organised by The Business Travel Magazine, the first dedicated to the serviced accommodation sector.

Buyers were told that a coalition of six associations, including the ASAP, has enlisted consultants Deloitte to help the sector create a common language around sustainability and, crucially, a method to measure the footprint of individual extended-stay properties.

The coalition is also devising a matrix that can be used by corporates in RFPs so they can judge the progress of a potential partner in their sustainability journey.

“Significant in-roads are being made,” said Kim Ashmore, Global Partnerships Manager at ASAP.

In the meantime, buyers say clear and simple messaging about the lower footprint of using serviced accommodation would help them encourage their travellers to consider switching from hotels. One buyer suggested using infograms to show comparisons, similar to those used to highlight the lower footprint of rail travel compared to driving or flying. These could perhaps focus on the lack of daily cleaning and F&B facilities, which generally give hotel stays a higher carbon footprint.

Guests at the lunch discussed several factors which make it difficult for the sector to provide meaningful, standardised emissions data. Firstly, it is a fragmented market and is made more complex because apartments can be owned, managed or part of a brand, making it difficult to collect and verify information. Apartments can also be in larger buildings alongside privatelyowned apartments or properties managed by other operators.

The vast number of sustainability accreditation companies offering their services to the industry, all based on different criteria and following different procedures, has further muddied the waters. The high cost of applying for and achieving accreditation was also identified as a barrier.

Echoing the findings of the Global Serviced Apartment Industry Report 2022, some buyers said they were not convinced by the validity of ‘green’ accreditation.

“It means nothing to me, or the booker, or the traveller. We need a number,” said one.

Good behaviour

Buyers said while having accurate, standardised per night emissions data is the ultimate goal – and vital for emissions reporting purposes as legislation comes into force – measurements based on averages were enough to drive better behaviour among their travellers.

They agreed that the assumption that booking with ‘greener’ accommodation will always be more expensive is not always the case, particularly for corporates paying to offset carbon emissions.

In such a fragmented market, it’s vital for players to pull together, said buyers, who agreed that serviced accommodation is a small enough sector to lead the way within the wider accommodation space.

Serviced accommodation operators reported seeing a rise in sustainability questions asked in RFPs, alongside a growing demand for their more environmentally-friendly properties. They said travel buyers can help to encourage investment and innovation by refusing to include content that doesn’t meet sustaianability standards in their travel programmes.

“This will encourage people to make the investment in sustainability. You guys have the power,” buyers were told.

Distribution

When it comes to sourcing and booking serviced accommodation, buyers said they need content that’s bookable online but agreed there were still occasions where offline support is required.

While some inventory needs to be live and accessible in one click, a four-month stay for a relocation will usually require bookers to come off line, put in a request and have an actual conversation. The level of support also varies depending on the market.

Buyers said travellers now expect to have a booking experience that’s similar to what they enjoy when booking their leisure stays, including the ability to manage changes and cancellations.

When it comes to the corporate world, why can’t I do what I can do on booking.com?” asked one.

Buyers were advised to put pressure on their TMCs and OBTs who have the capability to incorporate serviced accommodation and include the option in an organisation’s travel policy. For example, longer-stay alternatives could be displayed for bookings over a certain number of nights.