As the consulting industry faces pressure to cut travel costs while maintaining a high level of service, short term apartments have become a leading cost saver with all the benefits of a leading hotel, and something else.
The current economic climate and recent public scrutiny of travel and entertainment spending has placed corporate travel in the spotlight. The US corporate travel market fell 15 percent in 2009, an estimated industry loss of $85 billion, according to PhoCusWright, a Sherman, Conn.-based global travel research firm.
In the consulting industry, where travel is a vital component of business, consulting firms find themselves in a juggling act between meeting client demands and keeping billable travel expenses in check. At the same time, most consultants still travel more than 150 days a year and constantly struggle to maintain a work-life balance. About 85 percent of recruiters have seen candidates turn down a job offer because it wouldn’t include enough work-life balance, according to a recent survey by the Association of Executive Search Consultants. About 90 percent of recruiters say work-life balance considerations are more important now than they were five years ago.
Today, consulting firms must establish and adhere to a work-life balance policy to acquire and retain world-class consulting talent. That includes providing travel accommodation that feels more like living and less like working. Corporate housing has emerged as a way to better manage extended travel due to consulting projects. Companies that prescribe short-term apartments for their travelers can realize savings of up to 15 percent compared to typical hotel accommodations. Plus, consultants can enjoy more home comforts in addition to the high-quality services they expect during extended travel.
Customers reduce travel expenses
About half of the consultants surveyed report that clients are reducing travel expenses, according to a survey by Consulting magazine. Nearly a third of consultants report that clients place limitations on travel expenses as part of employment contracts. About one in five consultants say clients ask them to travel less or find ways to spend less on travel. It is too early to tell if these new pressures will continue after the economy improves. However, consultants must be prepared to continue to limit or reduce their travel expenses for the foreseeable future.