Articles & Industry News
Corporate Housing Providers:
Take Advantage of Today’s Spotlight
As a corporate housing professional, you may feel that the challenging economy is working against you. But there are opportunities today that are strongly working for you – and should not be missed. While you may not be able to single-handedly increase overall business travel demand, you can – and should – take advantage of today’s increased awareness and focus on corporate housing.
Corporate housing media exposure is at an all-time high, with recent coverage including The Today Show, USA Today, The New York Times, and The Denver Post, to name a few. This comes at a time when companies are seeking ‘sensible solutions’ for their travel budgets. The combination of broad-reaching press coverage and client receptiveness translates into a golden opportunity that should not be overlooked. Now is the perfect time for corporate housing to take a larger piece of the pie – the hotel / lodging pie, that is.
Take Advantage of the Media Frenzy
Corporate housing is ‘In the News’ everywhere you look these days. Just a few years ago, there were only a handful of feature stories on corporate housing each year, and those often included industry publications such as relocation, real estate, or multi-family housing.
However, the recent media coverage of corporate housing is far broader, with a different slant and greater benefit. It is taking corporate housing beyond the desk of the business decision-maker. People that never before knew about corporate housing, or only vaguely understood its value, are now hearing about it in greater detail, and in a favorable light. The broad audience of national mediums such as television and major newspapers means that our message is, at last, reaching the masses.
What’s All the Talk About?
Corporate housing is getting attention from a variety of angles. A few examples of recent articles cover an array of topics:
• Business travel writers are hailing corporate housing as the recommended solution for extended assignments.
o In his recent USA Today article “Defending Business Travel in a Recession” - 04/07/09, business travel writer David Grossman picked the use of corporate housing as one of his “Top Ten Tips to Reduce Travel Spending.”
• Travel managers, when being interviewed, are mentioning the cost-savings of corporate housing as an example of the positive changes being made to their travel programs and budgets.
o Kathy Hall-Zientek, Manager of Travel Services for Moog, Inc., East Aurora, NY, as interviewed in USA Today, April 2009.
• Real estate experts are suggesting that homeowners consider offering their vacant or unsold homes as corporate housing.
o Barbara Corcoran, NBC Real Estate Analyst, The Today Show, January 2009, Barbara Corcoran, NBC Real Estate Analyst.
• Condo developers, left with unsold units, are choosing to rent them out as furnished corporate housing for a period of time, rather than sell them at a loss.
o Donald Trump interview, Las Vegas Suns, February 2009.
• Home builders are promoting corporate housing to investors, with the option of buying while prices are favorable, then renting the home as corporate housing until the market rebounds.
o BuilderNEWS, April 2009
Why Not Just Cover ‘Traditional’ Corporate Housing?
Recently, I overheard a provider comment that, while they liked the fact that our industry was getting such good coverage, they wished that only traditional corporate housing was in the news. (By ‘traditional corporate housing’, they were referring to that offered at an apartment community / property, either by an onsite staff or a third party provider.) They were less than excited that the media was also covering newer alternatives such as homeowners offering corporate housing, or real estate developers turning condos into corporate housing.
My thoughts on that? This collective exposure will benefit all of us in the long run, as individuals and companies hear over and over that hotels are not the best option for extended stays. That is the message that will last. Whether you are selling to ‘choosers’ or ‘users’, the message is hitting home. In many industries, once a concept becomes popular, others find a way to offer it differently, with their own twist. Often this results in new ideas, new offerings, and improvements to that industry overall. The same will be true with corporate housing.
Run – Don’t Walk – To Your Travel Managers!
Companies today are not only looking to spend wisely. They are also careful to send the right ‘message’ to their employees and stockholders alike, in terms of business travel expenses. Anything that even suggests lavish spending is suddenly “out” – whether it is over-the-top meetings, corporate jets... or expensive hotels. Corporate housing certainly fits the bill, in terms of practicality and wise spending.
If you are one of the many corporate housing providers that only touched base with your travel managers from time to time, now is the time to change that! Keep in mind that they are deeply entrenched in a myriad of responsibilities, with travel spending being such a focus. They are burning the candle at both ends these days, so don’t wait for them to reach out to you. Run with the opportunity that is at hand. Get in front of your travel managers, at every account, and offer to help tailor a corporate housing program that fits their company’s needs!
What’s Ahead?
Whether a guest stays in traditional corporate housing booked through their company, or a traveler chooses a private furnished home.... they are opting out of hotels for their longer stays. This is what many of us have worked so hard for, and it is exciting to watch our industry gain this exposure. Hotels are wonderful, and needed. They will never be out of favor for the business traveler. But for the longer term stay – my vote goes to corporate housing! I’m looking forward to the day when, for extended stays, hotels are an alternative to corporate housing, and not the other way around!
No question, the months ahead will be a challenge as we respond to softening travel demand. Yet, as we reshape our companies and strengthen our product and people for the years ahead, we have much working in our favor. Take action on the positives!