Last week, I touched upon the how predictions of business travel will positively impact the Members of The Corporate Housing Network.  When sharing with you the results of one revered travel management company’s findings, I focused primarily on domestic business travel. Today I’d like to share the expectations for European countries as well.

According to Egencia – which is the business travel arm of Expedia, their 2010 Corporate Travel Forecast indicates that companies WILL reinvest in meetings and conferences next year; clearly, this is positive news. Primarily, pharmaceutical and financial sectors are at the top of the list… and many business destinations in Europe are forecasted to see increased demand (i.e. Madrid, London, Berlin, Brussels, and Paris).

Additionally, although travel is expected to increase, many hotels are being forced to agree to reduce their rates for corporate contracts through 2010. As corporate housing providers, we all can relate to the angst that surfaces when your client wants “to talk” about reducing your already-negotiated rates. 
Have you come across this recently?

Regardless, all in all, this is optimistic news both home and abroad.  Fortunately, according to a recent focus group, our Members of The Corporate Housing Network have
seen a significant decrease in their vacancies since listing their properties on TCHNetwork.com. Things will only go up (err… down, when referring to vacancies!) from here.

Related posts

• Negotiating Rates with Prospects Earns Profits on The Corporate Housing Network / www.TCHNetwork.com (0)
• Increased Demand Both Domestically and Internationally Should Benefit Corporate Housing Market (0)
• Average Ticket Prices (ATPs) for Corporate Travelers Expected to Inch Up, with Corporate Housing Rates Remaining Steady (0)
• A Wonderful Sign for the Future of Business Travel and Corporate Housing Arrives in London Early Next Year (0)
• U.S. Air Travel Prices Expected to Rise in 2010 to Offset Losses (0)

Since business travel is The Corporate Housing Network’s “business”, of course I keep abreast of the forecast for our primary target market, both for our Members and for my own sanity. Although recent news I received actually comes from Australia – heck, TCHNetwork.com has Australian corporate housing –  this information definitely applies.  International business travel, as we know, does not discriminate across borders; let me share the optimistic news report with you.

Business travel is expected to pickup in 2010 after sharp cutbacks during the global recession, a senior Airbus executive says.

John Leahy, Airbus’ chief operating officer, says that signs are emerging indicating that the corporate traveler “is returning”.  In fact, Leahy predicts that “by the end of 2010, premium traffic will be back.”

Fellow Members of TCHNetwork.com and those considering Membership, please join us through 2010 as we are all (finally!) rewarded for our efforts, as we continue to weather this storm.

Related posts

• Negotiating Rates with Prospects Earns Profits on The Corporate Housing Network / www.TCHNetwork.com (0)
• Corporate Housing Benefits from Increased Demand Domestically and Overseas (1)
• The Corporate Housing Network Solves Vacancy Issues; Diminishes Financial Risk for Owners of Corporate Housing, Extended Stay Suites, & Executive Furnished Apartments (1)
• Corporate Housing, Discount Retailers, “Sin” Industries, and a Few Others Consistently Hold Ground, Despite Tumultuous Economy (1)
• Corporate Housing Benefits from Past & Projected Growth Results RE: Domestic and International Business Travel (through 2013) (0)

I wanted to bring to our Members’ attention a very common occurrence that takes place when valuable prospects visit The Corporate Housing Network. (Oh, and by the way… Happy Halloween!!).

There are, of course, pluses and minuses to most corporate housing sales situations (i.e. you get the deal, but it wasn’t as profitable as you would have liked [however, in this economy, providers are just pleased to have gotten the deal, right?]; or, you get the deal, and you net tremendous profit… but the financial risk and/or vacancy exposure you have had to ensue makes you unable to sleep at night). On TCHNetwork.com, there are handfuls and handfuls of lucrative opportunities to safely anchor some solid deals — one, in particular, comes to mind.

Just a few days ago, The Corporate Housing Network received a “Request for Housing”.  It was for a 10 to 12 month lease, in NYC. Now, I will admit, the budget wouldn’t make most of our clients drool. However, I need to stress the following: As you can imagine, individuals and companies will ALWAYS try to get the lowest rate possible — it is human nature. If someone posts a Request with a budget range of $3,000 – $3,500, they will do so even if they know a typical monthly rate for that market is well over that amount. Especially in the economic turmoil most individuals and corporations are confronting, they fear that they will over-price themselves. They echo the following thought process: “What ‘if’ a Provider is willing to offer me a deal (perhaps, on a vacant unit they are trying to unload), but now I’ve just exposed myself, and confessed in black and white that I’m actually willing to pay $2,000 more per month?”. You see what I mean?

Often it becomes the Providers’ job to educate the prospect about typical rates for their market (don’t forget, most are relocating from an entirely different metro, with entirely different rates; they often have no idea what a typical monthly rate is in your market). So, if I were you, bid on any opportunity that comes your way, within your wherewithal. Please do NOT allow the budget ranges that prospects’ indicate make or break your financial success. Didn’t your Dad or Mom ever tell you that EVERYthing is negotiable? Mine sure did. And, they were right (that’s a WHOLE ‘nother story/blog).

Kat Schneider Fotheringham & her Partners launched The Corporate Housing Network (www.TCHNetwork.com) in ‘06; since then, it has revolutionized the short-term, furnished housing industry. The site’s real time availability options solve short term, furnished housing needs all over the world.

Related posts

• Corporate Housing Benefits from Increased Demand Domestically and Overseas (1)
• Well, the World is Changing and so is Corporate Housing (1)
• U.S. Air Travel Prices Expected to Rise in 2010 to Offset Losses (0)
• Talk about a great deal! There’s never a charge to search and request corporate housing on TCHNetwork! (1)
• Simple tips to make your next business trip smooth and productive (5)

The Corporate Housing Network / TCHNetwork.com has shaken up the corporate housing, extended stay, and suite hotel industry. Years ago, providers of temporary apartments and corporate condos took endless financial risks just to accommodate their clients’ housing needs. TCHNetwork.com’s virtual, web-based platform mitigates this financial burden, allowing traditional competitors the ability to share inventory among each other.

Read full New Release by CLICKING HERE, or you may read it below, as well.

Cleveland, OH (PRWEB) October 27, 2009 — Until now, providers of corporate apartments, furnished condos, or temporary housing who did not have an accommodation match for their clients played financial roulette. Owners were willing to lose up to eleven months of vacancy simply to deter their client from contacting their competition. The Corporate Housing Network makes all of this unnecessary. The Corporate Housing Network now offers providers of corporate housing and executive furnished suites the ability to share up-to-date inventory on a powerful search and booking platform. TCHNetwork.com is a turn-key solution: the infrastructure keeps corporate suites and extended stay units booked; removes the fear of losing a client to competition; and allows furnished apartments owners to share inventory – subsequently increasing profits.

“The Corporate Housing Network was born out of the mounting frustration among the corporate housing and executive rental suite community three years ago,” says Kat Fotheringham, CEO and Co-Founder of TCHNetwork.com. Traditionally, when a client had a short term need that the provider could not accommodate, corporate housing companies would be forced to sign a long-term property lease (typically twelve-months) on behalf of a client who only needed to book a short term (thirty-day) stay. “Or, you would find sales teams literally opening up the yellow pages, mundanely calling apartment communities and competitors one-by-one to ascertain who had available short term leases,” says Erin Bozan, President and Co-Founder of The Corporate Housing Network. “However, committing to a short-term lease directly through a property or competitor typically warranted an inflated price,” added Bozan.

Instead of wishing there was an online solution that had immediate search and book results, “We just sat down and developed it,” says Bozan and Fotheringham, in unison. These two former corporate housing colleagues left their comfortable careers and joined forces several years ago. The result? An effectively executed online, real-time tool for providers of furnished, corporate rentals to connect – and most importantly – network with each other.

Or, you would find sales teams literally opening up the yellow pages, mundanely calling apartment communities and competitors one-by-one to ascertain who had available short term leases  Ironically, after TCHNetwork.com launched in February of 2007, the site took on a life of its own. “My initial impression was that I would now share my inventory with other providers, as well as obtain matched leases from my competitions’ inventory – which equates to minimal vacancy exposure,” said Louise Ritley with Corporate Apartment Partners of America. “I soon learned that that my Membership not only allowed me to engage in networking, but my inbox was suddenly inundated with requests for housing from relocation companies, the government and military, traveling consultants, insurance companies, and the entertainment industry,” Ritley added.

Another feature that advertisers love – whether they are owners of corporate housing or vendors to the extended stay, corporate apartment, or vacation rental industry – is the ability to advertise their logo on a very clean interface. “Not only are their advertising rates the lowest I have ever seen, but since I’ve placed my logo on TCHNetwork.com, I have fully captured and targeted a highly qualified audience who are a direct match for my services,” says Cheryl Donato, a National Multifamily Trainer & Speaker, of Apartment Performance Training Solutions. Other companies who hugely capitalize on The Corporate Housing Network’s highly target online viewership are furniture rental companies, relocation companies, utility companies, locksmiths, divorce attorneys, cleaning services, rental cars, airlines, and background/credit check companies.

About The Corporate Housing Network (TCHNetwork.com):

TCHNetwork.com offers real time availability alternatives for thousands of short term, furnished housing options. The Corporate Housing Network’s international network of temporary corporate housing providers offer furnished accommodations from apartments and condos to single family homes and vacation rentals — all over the world. There is never a charge to look or book corporate housing on The Corporate Housing Network.

###

Related posts

• Negotiating Rates with Prospects Earns Profits on The Corporate Housing Network / www.TCHNetwork.com (0)
• Corporate Housing, Discount Retailers, “Sin” Industries, and a Few Others Consistently Hold Ground, Despite Tumultuous Economy (1)
• Corporate Housing Benefits from Increased Demand Domestically and Overseas (1)
• Increased Business Travel through 2010 Will Positively Impact Corporate Housing (0)
• Corporate Housing Benefits from Past & Projected Growth Results RE: Domestic and International Business Travel (through 2013) (0)

Historically, various industries typically hold their own ground — and sometimes even flourish — during economic downturns and recessions. Some of these businesses likely come to mind right away, whereas others neither you might not typically consider… nor do they get much media attention. Corporate Housing is a perfect example; it is not a very hyped or newsworthy market segment that makes headlines during a tumultuous economy. However, this niche industry holds steady and high occupancy rates even when other industries are hurting.

So…  why do particular industries do so well when others struggle to make ends meet and commonly collapse? Take a quick look at these with me:

Sin Industries
In bad times, the bad do well. Although it seems a little counterintuitive, people are loyal patrons to those products and services that may be viewed as more sinful, especially during a recession. People will pass on an iPhone or Blackberry upgrade, but several nightly glasses of wine, a pack of cigarettes, and/or chocolate indulgences name but a few of the small expenditures that those tight on cash will NOT typically skimp on.

The most prosperous businesses in this segment are purveyors of small pleasures that are found on the shelves of convenience stores and gas stations.

Corporate Housing
Here’s an interesting profit niche for rental property owners that doesn’t get a lot of media attention: Corporate Housing.

Providers of Corporate Housing target to lease out their furnished (often executive) rental unit or home to relocated employees, consultants on business travel, or families in between homes. It is reported that this real estate segment continues to hold their own during rigorous economic times; 8.5 times out of 10 they offer more revenue for investors than long term rentals.

According to a corporate housing industry group, last year corporate housing rentals stood strong with over an 88 percent occupancy rate. To give you a frame of reference, other typical lodging options and hotels barely broke 70 percent during this same time period in most markets. The net-net is that one can rent out their home, condo, or apartment to traveling domestic and/or international business travelers at much higher rates for shorter durations. In fact, feel free to post any upcoming properties you are considering renting on our site, and/or peruse upcoming availability in the U.S. and overseas on TCHNetwork.com.

Discount Retailers
It is pretty obvious that when people are on restrained budgets, they turn to the stores that offer the most for the least. Your initial reaction might be that discount retailers like WalMart or Target do well at any time; not always the case. Walmart often suffers in good times because those who have more generous budgets buy higher-quality goods via other outlets. To remain competitive when the economy is good, stores like Walmart are forced to upgrade their product lines and change the focus of their business from thrift… to quality. Consequently, their profits suffer from either lost sales or less profit margin.

In hard times, however, these retailers do well by reverting back to the less expensive core products and are able to provide cheaper goods to consumers. People may not like discount retailers, but in a recession most people end up shopping there.

The Steady Ones
As always, pharmaceuticals, healthcare companies, tax service providers, funeral homes, and waste disposal companies typically don’t feel the pain other companies suffer through during economic turmoil. Obviously, people still get sick, we all have to pay taxes, sadly people pass on, and we continue to generate lots of trash. Sometimes the most boring businesses offer the most consistent returns.

Related posts

• The Corporate Housing Network Solves Vacancy Issues; Diminishes Financial Risk for Owners of Corporate Housing, Extended Stay Suites, & Executive Furnished Apartments (1)
• Negotiating Rates with Prospects Earns Profits on The Corporate Housing Network / www.TCHNetwork.com (0)
• Corporate Housing Benefits from Increased Demand Domestically and Overseas (1)
• Increased Business Travel through 2010 Will Positively Impact Corporate Housing (0)
• What do Corporate Housing, Discount Retailers and “Sin” Industries Have in Common? They Consistently Hold Their Ground, Despite Economic Conditions (0)

Back in July, the National Business Travel Association (NBTA) and Egencia™, the corporate travel wing of Expedia Inc., released an analysis of findings based on an extensive study.  The study quantified the amount of money spent in global business travel, and projected growth through 2013. I won’t bore you with all of the details, but I found these results of particular interest. In fact, I’m certain that fellow corporate housing providers — both domestically and internationally — would also be interested in learning the findings. Specifically, I wouldn’t be surprised if Providers began frantically Googling “How to remotely set up corporate units in Europe, Asia Pacific, the Middle East, and Africa” after learning about how we (North America) compare to the international markets’ past and projected growth.

Although the study evaluated 72 countries, I’ll make it more simple by categorizing the growth patterns of certain areas to illustrate the past standings in/of business travel (from 1998 through 2008):

- North America advanced on average of just over 2 percent per year for the last decade
- Western Europe grew 4.6 percent annually
- Asia Pacific advancing by 7.2 percent annually
- Europe advanced annually by 12.4 percent
- Middle East/Africa region advanced by 7.7 percent annually

Furthermore, the predicted growth of business travel in China and Japan will exceed U.S. growth over the next five years. How does this make you feel? As interesting are the findings that developing nations such as India, Vietnam, Iran and Indonesia will experience significant compounded annual growth rates over the same five year time period.

The Corporate Housing Network would certainly entertain any international partnerships in all of these areas. In fact, we were well on our way to growing in the international marketplace; this study has confirmed to the Executives of TCHNetwork.com that we need to insure these markets are a priority.

Please share your thoughts about NBTA’s July, 2009 report; I’m anxious to hear from you!

Related posts

• Zzzz…Now you can economically sleep on the next long haul flight! (0)
• Your personal communications device taking on new roles (0)
• Will virtual meetings overtake the need for traditional business travel? (0)
• Why it’s tax time all the time for corporate housing and business travel (0)
• We’re back in business baby–business travel, that is! (1)

One of our very own Co-Founders has something that TCHNetwork.com is proud to boast. And, heck, if one can’t use a blogging platform to announce accomplishments (even if they’re personal), then the blogosphere may as well just close shop.

This past weekend marked the second (2nd) time Karoly Bozan, Chief Technology Officer of TCHNetwork.com, came in 1st place with a time of 2:43 at the Towpath Marathon, named one of the most beautiful race courses in America by Runner’s World magazine. Bozan certainly didn’t expect to win this race due to being injured after running the Road Runner Akron Marathon just two weekends prior (finishing 7th overall among over 10,000 other runners).  Bozan’s best marathon time is 2:28:26 and he still holds the outdoor 5000m school record at his alma mater, Kent State University, a Division I School; he attended Kent on a full athletic scholarship.

Bozan came to the United States in 1997 from Cegled, Hungary. He was discovered by Wendel McRaven, who is currently coaching at University of Illinois at Urbana-Champaign. Bozan caught Coach McCraven’s eye due to his Hungarian National Championships wins and outstanding results at multiple international races, including the World Cross Country Championship, and European Track and Field Championships across Europe.

Bozan met his wife, Erin, while attending Kent State and they now have two beautiful children, residing in Northfield, OH… the birthplace of The Corporate Housing Network, TCHNetwork.com!

Related posts

• The Corporate Housing Network Solves Vacancy Issues; Diminishes Financial Risk for Owners of Corporate Housing, Extended Stay Suites, & Executive Furnished Apartments (1)
• Negotiating Rates with Prospects Earns Profits on The Corporate Housing Network / www.TCHNetwork.com (0)
• Corporate Housing, Discount Retailers, “Sin” Industries, and a Few Others Consistently Hold Ground, Despite Tumultuous Economy (1)
• Corporate Housing Benefits from Past & Projected Growth Results RE: Domestic and International Business Travel (through 2013) (0)
• Corporate Housing Benefits from Increased Demand Domestically and Overseas (1)