What Does the Outlook for Serviced Accommodation Rates Look Like in the UK for 2025?
The outlook for the UK's serviced accommodation sector in 2025 suggests a mixed but optimistic trend as many experts predict an increase to the sector's £1.7 billion value.
The main indicators seem to point to continued resilience, particularly for long-stay accommodations, such as our corporate options. Dynamic pricing models and investments in technology for operational efficiency are expected to play a significant role in maintaining profit margins despite rising costs such as energy and labour. This represents a need for property hosts to think wisely about how they position serviced stays, considering the target audience and value-adds available from their properties.
Revenue per available room (RevPAR) and gross operating profit per available room (GOPPAR) are projected to grow modestly in regional UK markets, although high inflation and interest rates pose challenges. Overall, while economic uncertainties and rising costs may constrain growth, the sector is positioned to leverage its adaptability, especially through technology and strategic pricing, to sustain performance.
How Can Property Hosts Increase the Revenue From Their Serviced Accommodation in 2025?
Although the outlook is looking largely positive, it’s still essential for property hosts to consider how to maintain competitiveness in busy markets. Below, we’ve shared some suggestions:
Focus On Longer Bookings
A great way to improve profits is to encourage longer stays and focus on recurring bookings from corporate visitors. From a revenue perspective, long stays provide a dependable income stream, helping to mitigate the financial uncertainties associated with fluctuating occupancy rates. They also attract diverse guests, including remote workers and business travellers who seek convenience and cost-effectiveness.
Consider Adding the Personal Touch
Another way to increase demand is by adding a personal touch.
This attention to detail fosters positive reviews and repeat bookings, as guests are more likely to choose accommodations that prioritize their comfort and preferences. Additionally, a personal touch helps establish an emotional connection, turning a standard stay into a unique and delightful experience, which is key to building long-term loyalty in a competitive market.
Think Sustainably
With more businesses paying attention to their impact on the environment, another great idea is to focus on sustainable edits to a property.
Embracing eco-friendly solutions include examples such as choosing energy-efficient appliances or promoting waste reduction programmes..
Choose the Right Online Listing Platform
Selecting the right online listing platform is crucial for property hosts aiming to maximise bookings and revenue during 2025 and beyond. Each platform attracts different types of travellers, offers unique features, and charges varying fees, making it important to align your property with the one that best suits your target audience and business goals.
If you think that Comfy Workers is the right solution for your serviced stay, contact our team or click here to learn more.
