Rates for serviced apartments in key European cities are expected to fall in the next few months after staying “steady” over the summer, according to the latest market update from specialist booking agency SilverDoor.
The report said that rates in the wider EMEA (Europe, Middle East and Africa) region were “stable and offering a higher degree of predictability” compared with the immediate post-Covid period.
SilverDoor said that while overall average daily rates (ADRs) for apartments were currently down 25 per cent year-on-year across the EMEA region, they have remained at similar levels in major cities compared with 2022.
“Rates are expected to steadily decline as we move into the autumn and winter in Amsterdam, London, Dublin and Paris – welcome news for the cost-conscious corporate traveller,” said SilverDoor in its report.
Amy Pammenter, SilverDoor’s head account manager, added: “EMEA has been relatively steady for the time of year, except Amsterdam where rates are remaining high.
“Paris has already started to anticipate the increased demand the Olympics will generate next year; rates are starting to increase and properties are already filling up. We recommend booking sooner rather than later for Paris trips anticipated for July–September 2024.”
Wesley Shelling, group head of operations, said that rates in the Eurozone area had been “stable” so far in 2023, with this trend set to continue in the current quarter.
“We noticed a lowered relocation demand in destinations like Germany, Spain and Ireland during the second quarter, but direct bookings from corporate clients and the use of TMCs have continued to pick up,” added Shelling.
SilverDoor also noted that lead times for serviced apartment bookings in EMEA had increased from 27 to 33 days compared with the same period during 2022.
Globally there is expected to be a “general levelling” of serviced apartment rates following the end of the summer peak travel period, with current rates down 20 per cent on a year ago.
The report added that pricing remained the “ultimate decider” for corporate bookings, although there was “growing demand” for access to more sustainability data as a way to “encourage staff to make better informed accommodation choices and support reporting for travel programmes in more depth”.