The recession which started in 2008 has bottomed out but many economies are yet to see signs of recovery in 2010. Growth in the global economy is likely to slow towards the end of 2010, the International Monetary Fund has warned, due to weakness in the financial sector and the crisis of confidence in some national economies.
Travel and tourism was hit hard by the credit and housing market collapses experienced in many countries, with households cutting back on leisure travel and corporations reducing business travel.
According to a recent Business Travel Survey, travelers in 2010 have become smarter about value, and have found ways to reduce expenses over the last year. 71 percent of travelers surveyed changed their business travel habits. More business travelers are flying economy class, cutting meals costs and sharing rooms with colleagues due to the economic slowdown. Hotel location and price are the most important factors to a majority of business travelers.
Bangalore hotel apartments industry is dependent on business travel associated with the IT & BPO industry. The city has seen rates fall as a result of a drop in demand due to the global recession coupled with significant new hotel openings. Serviced apartments have grown in popularity among both business and leisure travelers.
Cost Advantages of Serviced apartments
- Serviced apartments can offer substantial cost savings compared to stay in hotels. While the major savings comes from the lesser room tariffs, the supplemental costs of stay are lower too.
The room tariff is typically 30% less than that of a comparable hotel.
The savings is even more for a group sharing a two or three-bedroom apartment rather than book individual rooms in hotel.
Cost of food catered by serviced apartment is cheaper in excess of 40%. If guest buys food from supermarket and cooks herself in the kitchen, savings can be as high as 75%.
Cost of services such as laundry and telephone & internet access charges are cheaper.
More Advantages of Services Apartments
- Having more space is a key advantage for those working away from home on a project assignment. The facility of a fully equipped kitchen, a living space apart from bedroom offers room to both relax and work as required. In addition, guests can bring along more personal items, creating a more homely feeling.
People with special dietary requirements or a family with small children find the option of self-catering attractive, since there are few healthy options available in a restaurant.