Tech powers serviced apartments/ short term rentals (STR) ahead

The extended stay/ short term rental (STR) model benefits from not being tied to any legacy booking engine which has traditionally been a strength in the travel business. Tour Operators, Travel agents and OTA’s (online travel agencies) have and still do use the powerful global booking systems as an integral part of their business.

As a competitor in the hospitality arena in largely urban centers the extended stay/ STR model uses its own online booking system to circumvent the existing OTA distribution channel.

This gives extended stay/ STR actors greater flexibility- they are able to pivot easier- and all importantly they control their distribution and manage the customer.

Companies such as Airbnb and Sonder have grown largely on the back of a successful VC funded based tech driven story and an evolving client base.

The power of the smartphone, AI, AR and VR have also all helped this new business model.

Generation Z and Millennials want control, flexibility and a touchless hospitality experience.

Smartphone check-in (i.e. no waiting in line), “housekeeping when you want” or “ordering in” also via smartphone are key advantages. Low touch with hotel personnel and other guests have also been key advantages.

AI, AR and VR are enhancing the service offering experience for the guest and operation for operator- re-enforcing personalisation and loyalty. AR and VR provides a more powerful consumer facing offering. AI helps the operator to re-enforce personalisation and loyalty.