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TMC bookings growing be apart of it Half year update, September 2015 SACO UPDATE New properties set for 2016 opening SACO’s newest properties – on London’s Cannon Street and in Edinburgh – are shaping up for opening in 2016. The London property will open in Q1. There will be 77 apartments, an on-site gym and a communal area for guests to relax or work in. SACO’s newest Scottish property will open in the second quarter of the year, and further locations are due to open in Dublin, Aberdeen, Glasgow and Amsterdam from late 2016. beapartofit SACO has unveiled an evolved brand which encapsulates its ambitious plans to drive the serviced apartment sector forward – with a collaborative approach, asking its customers to “beapartofit” and reshape the business to meet the needs of travel buyers, bookers and travellers. Jo Redman, Marketing Director, SACO, said: “We aim to reshape hospitality and make staying away from home great, we are continuing to develop innovative concepts, using online research into the trends of tomorrow’s traveller, and feedback and involvement from our customers.” This follows significant development of SACO’s innovative digital offering, including a brand new website, with an intuitive booking platform. Corporate portals are also being developed and created to give companies straightforward gateways to customised serviced apartment programmes, including rates, management information and traveller tracking. Leaving guests to their own devices To better understand customers’ technology preferences when staying away from home, SACO surveyed around 1000 guests who were given a list of in-apartment technology options and asked to rank them in priority order. The responses confirmed that what guests really want is the ability to use their own devices easily whilst travelling, with 87% of people ranking high speed wifi as their number one preference, compared to just 2% for smart TVs, and even less for other innovations. Stephen Hanton, CEO Commercial, SACO, said: “These results demonstrate the importance our guests place on superfast connectivity. This will be a key amenity across our new locations and we will be looking to upgrade the wifi at many of our existing properties to the same high standard.” Urban adventures matter most to today’s city breakers Research from SACO has shown that Urban Adventurers are the predominant form of leisure traveller using its serviced apartments across the UK. SACO created an online tool to discover what kind of city breaker they are – with a choice of a ‘Get Togetherer’, ‘Night Owl’, ‘Shopper & Café Hopper’ or ‘Urban Adventurer’ – to enable them to recommend the best location and apartment to suit their travel needs. From a survey sample of 500 of their customers, SACO recorded 65% as Urban Adventurers – which is categorised as modern travellers who prefer to be in the heart of the city, amidst the hustle and bustle. They make the most of every opportunity, moving fast with the pace of the modern world. The survey identifies the ‘Night Owl’ as the next most popular category among SACO customers, with 15% classified as these night time travellers, seeking the city’s best bars and clubs. The ‘Get Togetherer’ and ‘Shopper & Café hopper’ are the next two profiles given to travellers who take a different approach to a weekend away. These travellers are categorised as prioritising retail therapy and group activities when booking a city break. When asked what is the first thing they ‘Google’ when planning a city break, 75% of travellers chose local attractions and local places of interest over bars and shopping destinations. Only 8% would rather have a late night and forfeit seeing the city, whilst 87% prefer to be up and about rather than lie-in until midday. Market Commentary Ben Harper, Sales Director, SACO, said: “Our industry dashboard shows a good level of buoyancy in the corporate market during the first half of 2015. Not only is our revenue up but yields are too, and nowhere in our network is this more the case than in London. “The key trend that we’re seeing so far this year is a big jump in the relocation business – an area we have focused on, which is driving growth across the UK and international markets. This, along with increased GDS adoption and more TMC partnerships means we are achieving a healthy mix of mid to long and transient stays. On top of this, our focus on wider channel distribution and direct sales through the new website, www. sacoapartments.com, means we are able to push for an increased share of the wider leisure and hospitality mix. “We expect this to continue through the second half of 2015. 2016 will be a pivotal year for our business and industry as we see the delivery of significant new supply across a number of UK cities.” GDS bookings from TMCs up 20% YOY Relocation market segment Average Daily Rate climbing London leading the way revenue growth for London for YTD is 18% compared to 10% for the UK as a whole International stays shooting up bookings for stays at SACO partner properties across the globe grew 113% YOY Online sales up 38% YOY DASHBOARD JAN-JUN 2015 www.sacoapartments.com UP 5.1% YOY UP 83% YOY Total revenue growth of 14% YOY for the group
