Introducing Situ Signals, a new series of communications from Situ – the Global Accommodation Specialists – highlighting critical trends and market signals that everyone managing an accommodation programme needs to know. Here you’ll find Situ’s expert insights based on market sentiment and client experience, contextualised by trusted industry sources and verifiable data points.
Instead of relocating their employees for between one and five years, more businesses are opting for several short-term assignments typically lasting between three and twelve months. This development is supported by wider industry data. According to a survey carried out by mobility solutions provider Mercer1, 34% of respondents said short-term assignments are most likely to grow, with just 18% expecting an increase in the number of international long-term assignments. The overall rising cost of travel and mobility is one of the factors driving organisations toward short‑term assignments that may be easier to assign budget to, and which also allow a more agile response to business needs in a fast-changing environment.
Why it matters
Organisations that tend to rely on hotels will find these are rarely the answer for employees in this scenario. The overall increase in more frequent short-term assignments increases the need for a serviced accommodation programme that aligns client intentions and budget with an appropriate accommodation type, programme design, and quality of supply. A misaligned programme will result in traveller discomfort and will affect safety; creating operational strain and budget leakage.
“There is a push now to do more short-term assignments. Rather than an employee trying to find a permanent property within six months, they book serviced accommodation for the duration of their assignment. That’s the general trend we’re seeing, and so there’s an increase in average length of stay.”
James Connell, Client Success Director at Situ
Shifting policies and travel disruption
The complex geopolitical environment is clearly front of mind for many travel managers and buyers, whose role is more proactive and strategic than ever when it comes to managing global employee travel and mobility. In fact, GBTA’s January 2026 poll2 found that for travel buyers, cross-border travel and employee safety ranks closely behind cost concerns, and that changes in US border policy are of particular concern among US buyers. Furthermore, the April 2026 poll3 finds that growing disruption to travel concerns about affordability have now risen to 82%, up from 70% in January.
“One company we speak to actually has their own 24-hour ‘watch room’, so they pretty much know about any disruptions before their travellers are even notified.”
Hannah Trigg, Client Development Manager at Situ
Why it matters
The operational friction in the current travel environment can result in unforeseen costs when arrival dates change, assignment lengths become uncertain, and employees need to shorten, extend, abandon stays, or volumes reduce at short notice. Having to forego deposits, having nights remain unused, and cancellation fees can all leave companies footing the cost of travel and accommodation programmes designed for more predictable conditions. Using specialists such as Situ to negotiate the best terms with providers protects accommodation budgets: without flexible terms or strong supplier relationships, companies can be left bearing losses.
Regulatory change
Authorities seeking to curb over-tourism and solve housing affordability around the world have introduced regulations such as caps on number of nights, licensing, zoning controls, and taxes. The global short-term rental market in particular has been subject to evolving regulations over the past few years; while city taxes on transient stays can affect those staying in hotels.
Why it matters
Regulatory change directly and indirectly affects availability and costs in accommodation programmes by pushing up costs, reducing supply, or removing certain properties from the market entirely. Tighter regulation on STRs is linked to a measurable decline in informal accommodation supply, especially in highly populated cities. Those who would have stayed in STRs, whether corporate travellers, assignees on different lengths of assignment or those relocating, still desire similar space and amenities.
This ‘displaced demand’4, as Savills describes it, is contributing to the growth of professionally managed serviced apartments in the twenty-six European cities it studied. Higher occupancy levels in the mid-term and extended stay sector are likely one of the factors helping to keep average daily rates stable. It’s also worth noting that in the UK, the VAT for serviced accommodation drops after 28 nights from 20% to 4%, a further reason this housing type becomes more cost effective than hotels for longer stays.
The complexity of the regulatory environment means it is wise to lean on global accommodation experts to explain specific rules across different markets and to warn of any upcoming changes that may impact operations and programme costs. At Situ we keep abreast of changes in markets globally and maintain a comprehensive understanding of regulatory compliance, advising accordingly to minimise costs and avoid disruption.
“A lot of the conversations we have are about educating our clients…it’s up to us to educate them when there’s regulatory change or policy changes across the world.”
Harriet Smith-King, Client Success Manager at Situ
One trend that is slowly taking hold is businesses consolidating total accommodation spend. It’s common for large enterprises to have different departments to cover shorter hotel stays; and longer stays in apartments or single-family homes. However, what we are seeing today is that progressive businesses are rethinking these functions.
“The travel functions are booking hotels regularly, and the mobility functions are booking apartments regularly – and no one ever communicates in the middle.”
James Connell, Client Success Director at Situ
Why it matters
Rather than operating in siloes, when business travel and mobility functions collaborate they gain a full picture of total spend, and there can be greater scope to negotiate on total rates, whether with hotel brands and their aparthotel offerings, or with independent serviced accommodation providers that have supple accommodation networks and short-stay availability that allows discounts on aggregated accommodation spends across different functions and for varying lengths of stay. While this trend is expected to grow, it will take time to fully mature and consolidate.
More brands, more choice
There has been a surge in hotel groups expanding their footprint to launch aparthotel and serviced apartment offerings for extended stays, and making acquisitions allowing them to do so, including converting former hotels, and even offices, to modern apartments. This is occurring alongside the wider maturation and professionalisation of the independent serviced accommodation sector. This shows that they expect the sector to be stable and expect long-term growth.
Why it matters
More choice gives buyers greater leverage to negotiate long‑stay rates and push for clear, standardised inclusions, making like‑for‑like cost comparisons far easier than across fragmented, unmanaged supply – all without having to sacrifice traveller experience or duty of care. Clients booking through a specialist provider rather than direct with operators gain access to a quality, compliant network of accommodation and wrap‑around support, improving visibility, risk management, and cost control while allowing access to a diverse mix of accommodation types.
Blended travel
Blended travel, where employees mix leisure with business travel, continues to evolve and gain popularity. According to the Global Business Travel Association’s poll Business Travel Industry Outlook in October 2025 and into 2026, 43% of travel programmes now have defined policies for blended or ‘bleisure’ travel, with 71% of buyers citing improved employee satisfaction and 68% noting a ‘better work-life balance.’
Why it matters
As blended travel becomes more common, mid-term and extended‑stay accommodation offer a cost‑efficient way for employees to add personal time without driving up corporate spend, since additional nights, self‑catering, and in‑unit laundry keep incremental costs low. At the same time, increased traveller wellbeing reduces the indirect cost to businesses of the productivity loss associated with business travel fatigue. Going forward, blended travel is likely to be written into travel policies in a more structured way, providing that companies can establish partnerships that provide quality accommodation of the type their employees want. This is key to fully realising the well-being and cost benefits of blended travel.
Signal Summary
This report underscores how accommodation programmes often lose value in the margins in a climate of increased costs, changing regulations, and shifting travel patterns. ‘Unexpected’ costs can significantly inflate the true cost of a stay if not identified at the outset. Clear communication, contract scrutiny, and defined policies are therefore essential to protecting budgets. Building resilience comes from becoming attuned to industry signals, asking the right questions and partnering with experts to ensure transparency, predictability, and smarter long-term decision-making.
< Signal Two: Unexpected Costs Explained
To discuss the signals included in this report and to learn more about how Situ can help, please contact [email protected]
Disclaimer: This report provides general information and does not constitute legal, financial, tax, or other professional advice. All information is provided on an ‘as is’ basis without guarantees of accuracy or completeness. The authors and publishers are not responsible for any loss or damage that may arise from reliance on this information. You should consult with your own legal or other professional advisors for advice
specific to your circumstances. Copyright Situ 2026
[1] Mercer, Mercer 2025 Talent Mobility Outlook, 2025
[2] GBTA, GBTA Business Travel Outlook Poll Results, January 27, 2026
[3] GBTA, GBTA Business Travel Outlook Poll Results, April 22, 2026
[4] Savills, European Serviced Apartment Report: Regulation, Demand, & Fragmentation, April 2026.
