Perspectives Magazine, Summer 2011 Issue
By: Elle Crane , CHP – Director of Sales, DelSuites
Delsuites, Renowned Accommodation Provider in Toronto Area, (Best known for Furnished Apartments in Scarborough, Furnished Suites and serviced apartments in Mississauga and 13 other locations throughout the Greater Toronto Area)
In the relocation process, temporary accommodation is used for two primary reasons: the transferee is between homes or the transferee is on a temporary assignment.
Employees typically need temporary accommodation for an average of 30 to 90 days while seeking a home in the new location. With current unpredictable real estate markets, corporate housing has emerged as the new “it” solution for exhausted homeowners who cannot sell their home and for wearied travellers who desire accommodations that are more like ‘home’.
For many companies looking to reduce their travel spend, corporate housing has become their cost saving solution that doesn’t sacrifice the employees’ experience. Corporate housing provides the employee an opportunity to adjust to their new location by easing the transition in the most comfortable and economical way.
Hotels are responding with more “extended-stay” features, but the prices often cannot compare to corporate housing. When you compare the Hotel Industry and the Corporate Housing Industry, two major factors contribute to the cost variance. The Corporate Housing Industry operates on a more efficient business model than the Hotel Industry with a lower tax structure and lower ratio of employees per guest.
Another key distinguishing feature from a hotel is the availability of a kitchen with cooking utensils. Interestingly, this is a cost saver for corporations. Instead of eating out or calling room service and billing it back to the company, transferees purchase food and make their own meals. For a relocating employee, this can be beneficial in acclimating to the neighbourhood—finding local places to shop for household necessities. For an employee on short-term assignment, being able to prepare their own meals can bring added comfort and convenience.
In general, the additional space that corporate housing provides is quite welcoming compared to the confines of a hotel room—many transferees highly value having more than one room, especially when they are in temporary living for more than a month.
In Canada
The survey also estimated that in 2010, the number of furnished condominiums managed my Corporate Housing Providers across Canada
One-bedroom units make up 53 percent of the inventory; 37 percent are two-bedroom; 4 percent are three-bedroom; and 6 percent are studios. The average daily rate for a one-bedroom in 2010 was $117, with no increase from 2009.
Temporary living is a competitive industry, which makes it important for corporate housing providers to form understanding and responsive relationships with their clients.
Corporate housing providers’ clients are not limited to the corporations directly. Larger corporations often outsource their temporary accommodation requirements to a Relocation Management Company or Destination Service Provider. Corporate Housing Providers form partnerships with these service providers to meet the ever-changing needs of companies, and come up with new products and services that meet or exceed those needs.
Signifying the increasingly visible role of the corporate housing industry is the Corporate Housing Providers Association (CHPA). Formed in 1996 by eight industry leaders, today the CHPA has more than 300 member companies that represent 85 percent of all corporate apartments in North America .
At its 2007 national conference, CHPA offered the first round of testing for its Certified Corporate Housing Provider (CCHP) accreditation. One hundred and six corporate housing associates signed up to take the exam. The CCHP is the result of years of research and planning, as well as work with Worldwide ERC®. The accreditation is a good step for our industry. It’s the first step in showing clients a commitment to the industry.
From its humble beginnings, the concept of corporate housing has worked its way into the business world’s consciousness, especially in the last decade, as a prominent form of temporary accommodation.
