The see-saw of the economy, the difficulty in predicting how the industry and investment will be from one quarter to the next causes huge ramifications
London (PRWEB UK) 22 March 2013
A year ago a report published by well-respected property company Savills (2012 UK Serviced Apartment report) suggested there was the potential for a 200% increase in volume of serviced apartments in London. Basing their figures on a comparison with the units per business traveller in Hong Kong and New York, the report, released in spring 2012, claimed the city was running at an undersupply with 1.2 units per 1,000 business visitors, compared with 5.2 and 5.3 units in New York and Hong Kong respectively.
In the year since the report the stability that comes before growth has failed to materialize. The impact this has had on the business travel market has been substantial. A number of property developers have been able to expand into the market and build new accommodation in London, but travel budgets remain tight as businesses continue to draw in the purse strings to counter economic uncertainty.
The Chancellor of the Exchequer George Osborne announced in the budget 2013 “Our economic plan combines monetary activism with fiscal responsibility and supply side reform”. For Clarendon serviced apartments, who have spent 25 years in the industry working closely with businesses and investors the response is clear; stability is the only thing that will precede growth.
Peter Morgan is Head of Marketing & Market Development at Clarendon Serviced Apartments.
“No industry works in isolation and in the business travel and relocation sector we work in the same supply chain as property developers, construction, hotels and in many respects the leisure industry. The see-saw of the economy, the difficulty in predicting how the industry and investment will be from one quarter to the next causes huge ramifications. While we can identify business trends by understanding our travellers and clients it leaves many in an unpredictable situation. Uncertainty hampers investment, investment causes a reduction in jobs growth and hits the travel industry; the rut that we’re in sees one quarter of positive news drive optimism only to be taken away by a following quarter’s reported slump or downgraded growth forecast. Only stability will bring balance and long term growth back to the sector”.