Business travel budgets are not what they used to be. Many companies are seeking to be more cost-effective and are looking to reduce costs where they can. This can involve simply streamlining activity and looking for the cheaper option, rather than opting for a wholesale restructuring of the business.
What this mentality has led to is a sea-change in attitude for many. It is now more appealing to plan costs effectively and efficiently, making the most of their budget rather than flashing the cash for the sake of it. Cloud computing for example, creating a paper free office, looking for the best deal; these are all methods firms have adopted as they look to reduce costs.
Yet new research claims that the area businesses are wasting the most amount of money on is travel accommodation and it’s because they aren’t applying this cost-saving mentality to their business trips. One survey of corporate travellers found that by looking at serviced apartments, rather than just booking into their regular hotel, they could save up to 40% each visit.
Clarendon Serviced Apartments has luxury serviced apartments across central locations in London like The City, Canary Wharf and the West End and also further afield in Staines, Richmond and Kew. What do corporate travellers opting to stay in a luxury serviced apartment get that a visit in a hotel doesn’t offer?
Largely the cost of an elongated stay in a serviced apartment is cheaper that a hotel. People might think that a week, or even a month staying in a luxury apartment would be more expensive but the operating costs are much lower. A serviced apartment is self-catering for example; it offers a home from home whereas a luxury hotel has much higher rates because there is also a large number of staff to be paid for.
Say a business traveller is working from a firm in The City and needs accommodation for a ten night stay. A quick Google search shows immediate vacancies at five hotels costing from £1,500 to £2,980. A serviced apartment through Clarendon Serviced Apartments at Canary Wharf costing £145 per night comes in at £1,450. (prices based on a stay from 5/2/2013-15/2/2013 through lastminute.com).
The home from home element is also increasingly popular for business travellers. Many are staying in the capital because of a fixed term contract or working at a remote office. They might be relocating for a new position and need somewhere to stay before finding a permanent family home for them and their partner. A serviced apartment allows them to live centrally, to cook and clean and to make themselves comfortable. There is the added element of privacy and less of a feeling of disconnect with the city; you always feel like a visitor when you stay at a hotel.
Reducing travel costs by up to 40% each year for business travellers is incredibly attractive. As well as the flexibility offered by serviced apartments run by operators like Clarendon Serviced Apartments, the option to enjoy the same business trip but with a smaller bill at the end suits their preferred practice of streamlining expenses in 2013.