If you are a corporate traveler, you typically book your hotel. But what about your housing needs? If a company has a contract with an extended stay facility, they would like to put their employees there when they travel to save money and time. This trend has become more popular as the hospitality industry competes with other sectors. As competition increases, not only do hotels have to lower prices, but they also have to provide excellent customer service. This can be hard for hotels to maintain and sustain year-round. This article looks at the impact of corporate housing in the hospitality industry.
What Is Corporate Housing?
Corporate housing is a type of temporary housing where companies can place their employees while they are on business trips. Corporate housing is to save the company money by providing more affordable options.
Besides, it gives the employee the chance to have a home-like environment while traveling for work. While most hotels offer basic amenities like cable television and Wi-Fi, corporate housing provides more than a bed and bathroom. It offers everything you need to feel at home.
The majority of people who use corporate housing are people who travel for work regularly. These individuals may be consultants, salespeople, or executives who travel for meetings. They may also include remote employees who still need somewhere to stay.
How Does Corporate Housing Work?
Corporate housing providers offer short-term leases of one month to several years. These companies come with flexible corporate apartment leasing terms. The stay typically ranges from three months to 12 months but can be as short as one week or as long as several years.
The typical corporate housing tenant is an executive on assignment away from home. They need more than a bed and shower but don’t want the maintenance and expense of a rental property. They might also be new hires relocating for a job who need temporary housing until they find their place.
The shift from hotels to apartments impacts not only hospitality companies but also cities where these apartments are located. Cities like Los Angeles are experiencing increased commercial and residential real estate prices. The corporate apartment in Los Angeles is an affordable alternative to resorts for business travelers.
Corporate housing companies are part of the more significant hospitality industry and provide similar services to hotels. Corporate housing providers also offer housekeeping, linen, and dry cleaning services. This can benefit busy executives who don’t have time to worry about cleaning their apartment between meetings or after work.
Why Are Companies Using Corporate Housing?
Companies are turning to corporate housing to ensure their employees have a place to stay while traveling for business. This is especially true if the company does not have a physical office in the city where its employees work. Yet, remote workers or telecommuters travel to different locations for work. Corporate housing has also become popular among businesses with employees worldwide.
The increase in demand for corporate housing is impacting the hotel industry. This is because it reduces the need for people to book a hotel room when they travel for business. The increase in the supply of corporate rental apartments has been stimulated by the rise in demand from corporations looking for temporary housing options.
Benefits of the Corporate Housing Model
Corporate housing is revolutionizing the hospitality industry. The corporate housing model offers several benefits to both homeowners and renters alike. For homeowners, it provides a way to earn extra income on vacant homes, allowing them to offset mortgage payments. For renters, corporate apartments for rent provide an affordable alternative to hotels while also offering several other benefits:
Corporate housing is ideal for temporary relocation or long-term travel when living in your home isn’t practical. This type of living provides complete access to all amenities, such as your kitchen and bathroom, and laundry facilities in most cases. You don’t need to worry about finding parking spaces or driving back from work late at night.
Corporate housing offers an affordable alternative to moving into an apartment or hotel room for short-term stays in another city or country. If you plan on staying for more than two weeks, staying with a host family can be even cheaper than a hotel!
With a corporate apartment, employees can have more control over the location, amenities, and services available at the property. This makes it easier for them to find something that fits within their budget and needs. Corporate apartments can be rented on a monthly or annual basis. This allows companies to change their leases as needed or cancel them at any time. They don’t have to be locked into long-term commitments as traditional leases need.
Companies can save money by reducing the number of hotel rooms they need to book for their employees. Hotel rooms can cost as much as $250 per night, so if five people are traveling, this option could save over $1,000 per week in lodging costs alone.
Is Corporate Housing Right for Your Company?
Corporate housing is a trend that’s becoming more and more prevalent in the hospitality industry. But how do you know if it’s right for your company?
Here are some factors to consider:
- How many people are traveling? Corporate housing may not be necessary if you only send one or two employees to a conference or event. Yet, if you’re going to have 20+ employees at an event, then corporate housing can be an affordable option for your employees.
- What are your budget constraints? If you don’t have much money in your budget for travel expenses, corporate housing could be a great way to save some money on hotel costs. By staying together in one place, companies can save money on nightly rates and time. They don’t have to drive around looking for parking spots every morning.
- Are you looking for convenience? Corporate housing allows companies to connect with other businesses through networking opportunities in shared facilities. Your employees will also have access to amenities like fitness centers that they would not get in traditional hotels.
The corporate housing market is booming and is an excellent alternative to traditional lodging. It has experienced recent success. This is because of the rise in sales and marketing efficiency opportunities it provides to businesses. There are many benefits to corporate housing, and one of them is cost savings. All the costs are delegated to the serviced apartment management companies. There is little or no direct cost to the corporation or traveler. Corporate housing is a lucrative revenue stream for hospitality properties if there aren’t enough hotel rooms in a given area.