Did you know Corporate Housing has been around longer than Extended Stay Hotels?
Did you know there used to be more corporate housing rentals in the United States than there were extended stay hotel rooms?
The world is ever changing and changing faster than most of us can keep up with. 5 years ago if you had said “Airbnb“ to anyone they would have had no idea what you were talking about and the idea of a company name that combines “Air Mattress” & “Bed and Breakfast” would have had no connection to you.
What the success of Airbnb proves is that as travelers we love to stay in residential rentals not just commercially zoned hotel rooms!
Well those of us in the corporate housing industry have been pontificating the virtues of short term residential furnished rentals for decades. Just because the term “Corporate Housing” hasn’t been a traditional lodging term for the recreational traveler doesn’t mean the professional business traveler hasn’t been experiencing the extended benefits of staying in a residential furnished rental through corporate housing providers.
That said, the corporate housing industry does have some identity issues. The number one question we get at CHBO is “Are corporate housing rentals only for corporate people.” NOPE! Traditionally corporate housing rental were designed for the high volume demands of the corporate traveler but as with everything the corporate housing world is changing too.
There are tons of reasons that people need monthly furnished residential rentals from professional athletes, to displaced home owners, to divorcees to traveling professionals and more.
Each year in the Annual CHBO Corporate Housing Report we track the terminology used to describe what those of us in the industry call “Corporate Housing.” This is what we found this year…
Corporate Housing Terminology
The Lodging Segment = Extended Stay
“Extended stay” is generally considered the larger lodging category name for housing options that offer both sleeping and living facilities. The extended stay lodging segment includes:
- • Extended stay hotels (averaging less than 7 days per stay)
- • Serviced apartments (averaging 80 days per stay)
- • Managed corporate housing (averaging 100 days per stay)
- • “By owner” corporate housing (with 13% of stays lasting one year or longer)
Think of these options as a spectrum of choices that meet people’s specific housing needs.
The Product = Corporate Housing
According to survey results, 74% of respondents say they list their rentals as “corporate housing,” followed by 45% who say they list their properties as “furnished rentals.” The term “furnished rentals” experienced the largest fluctuation with a drop of 6%. This survey question also allowed for open responses. It looks like there is a new trend for referring to rentals as “executive rentals,” “extended stay executive housing,” and “executive residences.” We will monitor this new terminology in 2015.
This year, 27% of respondents say they refer to their properties as “vacation rentals,” down slightly from 29% in 2013. We will continue to watch these responses as a possible trend resulting from the regulation and taxation of the less than 30-day rental segment. Last year we predicted that “assuming no new major policy or tax laws are passed, we now expect this number to stay flat,” and this appears to be correct.