2017 has arrived in style. There is much that we look forward to and going by the traction that we have had in the past 2 years, 2017 promises to be a fantastic one. The service apartment sector is one of the hottest one in hospitality sector. As more and more corporate recognize their efficacy, the service apartment industry has well and truly arrived in India and is growing at a fantastic rate.
The growth in corporate travel can be gauged by the fact more than one fifth of all relocations in the past 3 years comprised of professional travelling on work assignments. While the majority of serviced apartments are in Europe and US, there has been a major boom in the sector in many Asian countries, with India emerging as one of the most major market. In the last 2 years, the numbers of service apartments grew at a rate of more than 18%. With more players entering the market, the future promises to be a bright one.
Even though the numbers of service apartments are growing rapidly, there is still a huge demand supply gap in India and the fact that more than 20% of hotel occupancies are due to the lack of serviced apartments speaks volumes about the growth potential of the service apartment sector. In fact, it is a win win situation for both the apartment provider and the traveler. The apartment owner has a continuous cash flow and the traveller gets accommodations at costs far lesser than hotels. With the kind of present awareness, the growth trends will not slow down for a long time to come.