I've just returned from attending Urban Living Festival London where industry leaders—including property developers, serviced apartment operators, consultants, and tech innovators— came together to explore the evolving landscape of short-term rentals and serviced accommodation.
In a fragmented sector that feels like it is searching for its own identity—and its own name (I've noted at least six different names for the category) —some key trends have emerged.
Corporate travel trends
1. Shorter lead times and value-conscious decisions
Corporate travel planning has become more agile. With global economic uncertainty and hybrid work models, travellers are booking closer to departure dates. This shift has made value perception more important than ever.
Rather than focusing solely on price, travel managers and employees are evaluating the cost versus perceived value. Properties offering kitchens, laundry facilities, and workspaces are often preferred over standard hotel rooms. The average length of stay is also decreasing, which means operators must deliver high-impact experiences in shorter timeframes.
“It’s not just about cost anymore—it’s about what you get for what you pay.” Tom Fleming, Altovita
2. Amenity-rich, home-like space
The traditional hotel room is losing favour. Business travellers now seek amenity-rich properties that offer a “home away from home” experience. This includes access to kitchens, living areas, fitness centres, and coworking spaces.
Extended stay properties allow travellers to maintain routines, exercise, cook meals, and unwind in spaces that support well-being. Companies are recognising that when employees feel cared for, they perform better. The human impact of the stay—comfort, autonomy, and balance—directly influences productivity and retention.
Standardization is still very much top of the priority list: Corporate travellers want to know what to expect. While platforms like Airbnb offer variety and great amenities, they often lack the consistency required for corporate travel. Serviced apartments and aparthotels are stepping in to fill this gap, offering predictable quality and service levels.
3. Safety and compliance top of the agenda
Duty of care remains a top priority. Companies want assurance that their employees are safe and supported. Branded short-term rentals are the perfect option for companies looking for compliant and secure lodging options for their employees.
Technology plays a key role, enabling real-time reporting, location tracking, and compliance documentation. Accommodation is no longer just a booking—it’s a strategic asset.
Serviced Apartment Operators: Three Strategic Shifts
1. Scalability without headcount growth
Profitability for serviced apartments and short-term rentals used to mean adding thousands of units and the staff to service them. Today, technology makes it possible to grow without the large overhead. Operators are leveraging property management systems (PMS) to automate bookings, manage inventory, and deliver guest services at scale. Staffless properties are becoming more common, with guests having the option to ask for help from someone who may not be on site.
Technology is also enabling operators to quickly pivot between different usage models—student housing during term time, short-term rentals in summer, and co-living year-round. It’s not just operational—it’s strategic.
2. Blurred lines and smarter distribution strategies
The lines between accommodation types are becoming increasingly blurred. A building once dedicated to student housing may now be used for short-term rentals during holidays. Operators are designing properties with multi-use flexibility, supported by tech that adapts to different guest profiles.
Distribution strategy is also evolving. It’s no longer enough to list on a few OTAs. Operators must understand their target audience, tailor messaging, and optimise channel mix—including direct bookings, corporate partnerships, and niche platforms.
Having a robust distribution strategy is crucial - one operator even mentioned that having identified the target customer and the distribution strategy should be essential, even before building begins.
3. Planning constraints the supply side
In the UK, planning difficulties and rising costs remain major hurdles. Staffing, construction, and regulatory challenges are slowing supply and making new developments harder to justify.
Yet, the mood at the Urban Living Festival was optimistic. There is strong demand, and the sector is maturing. Operators are calling for greater professionalisation, clearer identity, and stronger advocacy.
This includes better data reporting, industry standards, and collaborative platforms. The goal is to move beyond fragmented offerings and build a cohesive sector that can engage with policymakers, investors, and corporate clients.
