The latest market update from specialized booking agency SilverDoor suggests that serviced apartment rates in key European cities will likely decline in the coming months, following a period of stability during the summer. The report highlights that rates across the broader region have remained relatively stable, offering a higher level of predictability compared to the immediate post-Covid period.
While the average daily rates for serviced apartments have decreased by 25 percent year-on-year in the EMEA region, major cities have maintained similar price levels compared to 2022. SilverDoor anticipates a gradual decrease in rates as we transition into the autumn and winter seasons, particularly in cities like Amsterdam, London, Dublin, and Paris, which is good news for budget-conscious corporate travelers.
Amy Pammenter, Head Account Manager at SilverDoor, noted, “The EMEA region has shown steadiness for this time of the year, except for Amsterdam, where rates continue to remain high. Paris is already gearing up for the increased demand expected during the Olympics in 2024, with rates on the rise and properties filling up. We recommend booking early for Paris trips scheduled for July to September 2024.”
Wesley Shelling, Group Head of Operations, pointed out that rates in the Eurozone have remained stable in 2023, with this trend expected to persist in the current quarter. While there was a decrease in relocation demand in countries like Germany, Spain, and Ireland during the second quarter, direct bookings from corporate clients and the use of Travel Management Companies have been on the rise.
SilverDoor also observed an increase in lead times for booking serviced apartments in EMEA, which have gone from 27 to 33 days compared to the same period in 2022.
Globally, a general leveling of serviced apartment rates is anticipated after the conclusion of the peak summer travel period, with current rates down by 20 percent compared to a year ago. The report highlights that pricing remains the decisive factor for corporate bookings. However, there is a growing demand for access to sustainability data to enable staff to make more informed accommodation choices and support more comprehensive reporting for travel programs.