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  • Writer's pictureRobin Lawson

Understanding Serviced Accommodation Demand in Newcastle and the North East

Updated: 2 days ago

Exploring Key Trends, Demographics, and Target Audiences in a Growing Market

Serviced accommodation, a hybrid between hotels and long-term rental properties, has seen a significant rise in demand in recent years. This demand is driven by a variety of factors, particularly in regions like Newcastle and the North East of England. This overview delves into the market demand, key demographics, and target audience for serviced accommodations in this region, providing insights into why this sector is thriving.

Serviced Accommodation Demand Explained

The demand for serviced accommodation in Newcastle and the North East has been bolstered by several key trends. Firstly, following a slowdown during the pandemic, an increase in business travel has played a pivotal role. Newcastle, being a hub for various industries, including digital technology, finance, and education, attracts a significant number of business travellers. These professionals often seek accommodations that offer the comfort of home with the services of a hotel, making serviced apartments an ideal choice.

Secondly, the tourism sector in the North East has grown steadily. With attractions such as Hadrian’s Wall, the Angel of the North, and vibrant city life, the region attracts both domestic and international tourists. These travellers often prefer the flexibility and space of serviced accommodation, especially those travelling with families or for extended stays.

Furthermore, the rise of remote working has also contributed to the demand. With more professionals working remotely, there is a growing trend of 'workations' where individuals combine work and leisure. Serviced apartments provide the perfect environment for such arrangements, offering high-speed internet and comfortable living spaces.

Insurance Sector Contribution

Burnt down house requiring temporary serviced accommodation for displaced residents.
Serviced accommodation provides temporary housing solutions for individuals and families displaced by home disasters.

Another significant contributor to the market demand is the insurance sector. Individuals and families affected by house fires, subsidence, or other home-related disasters often require temporary housing while their homes are being repaired. Insurance companies frequently book serviced accommodation for these clients, appreciating the home-like environment and amenities that can help reduce the stress of displacement.

Key Demographics

Understanding the key demographics for serviced accommodation in Newcastle and the North East is crucial for tapping into this growing market. The primary demographic segments include:

  1. Business Travellers: Predominantly aged between 25-55, these individuals seek convenience, comfort, and proximity to business districts. They value amenities like Wi-Fi, meeting rooms, and easy access to transportation.

  2. Tourists: This group includes families, couples, and solo travellers aged between 18-65. They look for spacious living areas, kitchen facilities, and locations close to tourist attractions.

  3. Students and Academics: With prominent universities such as Newcastle University and Northumbria University, the region attracts students and visiting academics who require short to medium-term accommodation.

  4. Remote Workers and Digital Nomads: Typically aged between 25-45, this group seeks flexible living arrangements that support both work and leisure. They value properties with workspaces, high-speed internet, and recreational facilities.

  5. Insurance Clients: Families and individuals temporarily displaced from their homes due to incidents such as fires or subsidence fall into this category. They require fully furnished, comfortable accommodations that can serve as a home during their period of displacement.

Target Audience

The target audience for serviced accommodations in Newcastle and the North East can be segmented based on their unique needs and preferences:

  1. Corporate Clients: Companies often book serviced apartments for their employees, especially for long-term projects or relocations. Marketing efforts can be directed towards HR departments and corporate travel planners.

  2. Leisure Travellers: This includes families on holiday, couples on a getaway, or groups of friends exploring the region. Promotions and partnerships with local tourist attractions can attract this audience.

  3. Educational Institutions: Universities and colleges often seek accommodation for visiting lecturers, researchers, and students. Establishing relationships with these institutions can ensure a steady stream of bookings.

  4. Remote Professionals: Attracting remote workers involves highlighting the facilities that support both work and leisure, such as ergonomic furniture, co-working spaces, and leisure amenities.

  5. Insurance Companies: Collaborating with insurance providers to offer temporary housing solutions for their clients can create a reliable stream of bookings. Highlighting the comfort and comprehensive amenities can make these accommodations more appealing to displaced individuals.

Serviced Accommodation Demand

The serviced accommodation sector in Newcastle and the North East is experiencing robust growth, driven by diverse market demands and a wide range of demographic segments. Business travellers, tourists, students, remote workers, and insurance clients all contribute to the increasing popularity of this accommodation type. By understanding the unique needs and preferences of these key demographics, service providers can tailor their offerings to capture a larger share of the market. As the trend towards flexible and comfortable living continues, the demand for serviced accommodation in this vibrant region is set to rise even further.

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Frequently Asked Questions

What is driving the demand for serviced accommodation in Newcastle and the North East?

Who are the key demographics for serviced accommodation in this region?

How do serviced accommodations benefit business travellers?

Why are serviced apartments popular among remote workers and digital nomads?

How do insurance companies utilise serviced accommodation for their clients?


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