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Everyone that runs a business expects that 2015 will be a better year for them than 2014. The sad truth is; some companies seem to be doing worse in terms of revenue than last year! The hospitality industry is one such type of business that isn’t doing too well.

Don’t get me wrong; people that use hotels for personal reasons are still taking rooms. It’s the corporate customers that seem to have deserted many of today’s hotels. It turns that there are many different reasons for such an unusual trend:

hotel

Source: Pixabay

Companies want to spend less on hospitality

It’s no secret that many companies are still reeling from the effects of last decade’s global economic crisis. They are spending less and looking for ways to further cut back on their spending.

Many businesses have workers that travel to different parts of the country, and even to countries abroad. The conventional thing to do was to stay at a hotel for the duration of their visit.

But, savvy business owners are requesting that employees use alternative forms of accommodation instead. One popular alternative to staying at a hotel is to book some days at self-catering apartments.

Corporate apartments are not a new accommodation option for business travelers. In today’s modern world, they provide the perfect alternative to expensive hotels. Especially when employees need to stay for several weeks. Hotels are seldom likely to offer significant discounts to their corporate clients these days.

hotel

Source: Pixabay

Another advantage of corporate apartments is that lease terms are flexible. That means employees can stay for one day or 100 days. Hotel bookings aren’t as flexible, especially during peak vacation times of the year.

More than just accommodation

When a worker has to spend a lot of time away from home, they will welcome the ability to make use of other facilities. Examples include gyms, swimming pools, and other fitness center amenities.

Some hotels offer those facilities, but not all of them. And the ones that do charge a hefty premium for the privilege! Employees are seldom likely to pay extra for those facilities. And their employers won’t sanction putting those costs through as business expenses!

Extra space

When you spend a long time based out of a hotel room, things can feel rather bleak and depressing. Typical hotel rooms offer little extra space, and employers won’t pay for workers to upgrade to bigger suites.

Staying at a self-catering location offers more scope for space. It means that it can feel like their home away from home. Not just a small box with a window and bathroom inside of it!

Better Internet access

Corporate properties offer high-speed Internet access. As you know, that’s a must for business travelers. Hotels offer mediocre Internet speeds and charge obscene amounts of money for access!

As you can see, those are just some of the reasons corporate travelers and their employers prefer using alternatives to hotels. If the hospitality industry wants to reverse this decline in business usage, they must change the way they offer their services.