Air China Cathay Pacific

The world of travel is changing. Next one and or two years will be travel business influenced by financial crisis. There is no doubt about reducing in family budgets. It makes sense that first what is going to be reduced are holidays, vacations or trips. Furthermore there is no wonder that according to report of PWC hotels are managing in a downturn. Niels Pedersen Managing Director (Supranational Hotels, November 2008) stated: “In 2009 hotel revenues typically will drop 20 per cent, with the five-star market hardest hit, four star properties down by a quarter, three stars dropping 10-15 per cent, and budget hotels remaining static”. In other words by a top executive with an international luxury hotel chain, who did not want his name used for fear of losing his job, told me recently that the dominoes are falling among full-service hotels frequented by business travelers in London, Tokyo, Hong Kong, Shanghai, Paris, Prague and even New York. Until recently, hotel rates in New York were buoyed by robust demand by financial services executives and by foreigners lured by a favorable exchange rate (stated in The New York Times, November 2008).

Hotel business is going to challenge against poor periods. The first question is rising: “Is there any change for travellers to retain with their customs?” From text and figure above is obvious that in summary they will be willing to spend less amount of money for the same standard of staying. My words can be confirmed by article of David King (Chief Marketer, 2008). Once more: “Is there any solution for travellers?”

Yes, there is. Recently more and more people are being aware of possibility of serviced apartment staying. If you don’t know what such apartment staying could look like please e.g. visit Prague City Apartments. Maybe you can oppose that apartment staying is valuable just for long term stay. Or you can say that you need service of the hotel or it is less secure or there is missing maid service and etc. So that is not true.

If I am back with some Apartment providers, these companies are able to cover all of mentioned issues:

 

• Apartment provider can provide high security facilities (cameras, electronic key/cards, 24 hour reception)
• Apartment provider is running 24 hours reception (so PCA is able to react to unexpected situation anytime)
• Apartment provider is running maid service (cleaning) everyday
• Apartment provider is offering short term stay

The second and the most important question is: “Does it worth?” Of course, it does. By using the information from Server Royals of Rent we can see that apartment has:

+ more space
+ layout may offer more privacy than a hotel would (separated rooms)
+ more freedom
+ more freedom to entertain guests the way you want to
+ more privacy
+ more homely feel
+ apartment embraces the culture of the local area more than a hotel room
+ pets usually welcome
+ you don’t have to eat out all the time
+ a refrigerator stocked with your favourite foods
+ a fry-pan in the kitchen
+ a washer and dryer in the apartment instead of continually sending clothes out for cleaning
+ rates are per apartment and not per person so there can be significant financial savings from sharing the apartment
+ for longer period might be financially more reasonable than a hotel

However I cannot agree with last point. Especially from the point of view of longer period. Nowadays it is more reasonable for short term staying and why? Because of PRICE. Average savings with regards to rate analysis by The Apartment Service 2008 Global Survey:

 

I think I can conclude this article „No More Hotels“ by this statement.

Hope you get more insights into the apartment staying and you will not cancel your trip because of financial crisis.

 

For more information about advantages and disadvantage of apartment staying please visit my blog.

PCA
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