The Rise of Alternative Accommodation in Business Travel

From corporate housing to B&Bs, demand for alternative accommodation is skyrocketing among business travellers. Influenced by trends like bleisure and remote work, unconventional properties like these are not only flexible, but also help provide the home-like atmosphere that many business travellers seek. And while hotels are still the most popular option for short-term business travel, workers on long-term assignments often prefer the added space of options like serviced apartments.

Approximately 25% of European companies already reimburse non-hotel stays, with the number set to grow as the alternative accommodation market share climbs. If your company’s not already catering to these accommodation preferences, you could be missing out on their benefits. 

In this article, we’ll outline the types of hotel alternatives out there, while highlighting their pros and cons. Armed with this information, you’ll be able to determine how today’s alternatives measure up against hotels for business travellers, to maximise savings and satisfaction.

Factors driving the alternative accommodation trend

According to a Future Market Insights report, the alternative accommodation market is projected to grow at a CAGR of 14.4% between 2025 and 2035. These global industry values are due to rise from 209.5 billion USD in 2025 to 804.6 billion USD in 2035.

So, what’s driving this growing trend? There are several elements at work, including digital nomadism, remote working culture, and online booking platforms. 

Rise of remote work

For business travellers, the increase in technology and resultant ability to work remotely is a key factor. When working and travelling away from home for more than a few days, a holiday home or self-catering apartment can be more comfortable than a hotel. And for those extending business trips with a few days of leisure time, staying in boutique accommodation often provides a more immersive experience. 

Improved booking technology

The prevalence of online booking platforms is another factor. For example, when you use Booking.com for Business to search for accommodation, you’ll see everything from apartments and guest houses to boats and farm stays listed alongside the usual business travel hotels. With an overview of options for a quick and easy online comparison, it’s easier than ever to book alternative options you may not have considered in the past. 

Discount availability

For businesses, alternative accommodation can be more flexible and budget-friendly than traditional hotels. Longer stays teamed with corporate discounts add up to significant savings on business travel expenses. 

The pros and cons of business travel hotels

Hotels still come out on top, with our research showing that they’re preferred by 71.6% of global business travellers. Yet the proportion of business travellers choosing hotels decreased by 2% between 2019 and 2023, and this figure is likely to further decrease as the alternative accommodation market share grows over the next decade.

There are several reasons why hotels remain a popular option, particularly for short-term business trips. As larger establishments, they offer a high service standard and wide range of facilities and amenities. This includes convenient features like onsite conference rooms, restaurants, bars, and fitness centres. You’ll also be able to choose from a variety of room options and layouts suitable for individuals and groups. 

Pros: 

• Quick and easy to book
• Widespread availability 
• Suit a range of budgets
• Located near transport hubs
• Include business and recreation facilities 

Cons: 

• Central locations come at a higher cost
• Long stays can be expensive
• Don’t come equipped with home comforts

For a short-term stay with a convenient location, hotels are still a great option. But when travelling teams require something that fits outside of the box, it’s time to consider an alternate accommodation. 

What is an alternative accommodation?

For those interested in an alternative to the usual business travel hotel, there are now plenty of options. These include fully furnished corporate housing, apartments that come with hotel-like services, and cosy guesthouses that offer the comforts of home. Hotel alternatives also include more unique properties like houseboats and chalets, along with luxurious villas suitable for corporate retreats.

What are the top hotel alternatives for business travellers?

To help you choose the right option when planning a work trip, here’s a breakdown of the different types of business travel accommodation, along with their pros and cons.

Holiday Homes

While holiday homes are usually associated with families or groups of friends, they’re equally suited to groups of business travellers. Containing separate living and sleeping areas, they provide added space for meetings and team bonding, along with a homelier atmosphere than hotels can provide. 

This category includes a wide range of listings, from detached suburban houses to beachfront terraced properties, each with its own unique atmosphere.  

Pros: 

• Wide selection of options to suit your group size and destination
• Home-away-from-home atmosphere
• Budget-friendly for longer stays

Cons: 

• Doesn’t come with services like dining and laundry

Best for: Employees working on long-term contracts, groups attending conferences, training sessions and workshops

Serviced Apartments 

Like holiday homes, serviced apartments offer self-contained accommodation with separate bedrooms, living areas, and kitchens. They afford employees with flexibility, space and privacy to follow their preferred routines while travelling for work. 

Serviced apartments go a step further than regular holiday rentals with options like cleaning and laundry included, and they’re often located near business complexes in large urban areas. 

Pros: 

• Cost-effective for longer stays
• Onsite security
• Convenient, central locations
• Some hotel-level services included

Cons: 

• Fewer options in remote areas
• May be more expensive for short stays

Best for: Corporate relocations, workers travelling with families, extended-stay site visits

Corporate Housing

Although it’s often used interchangeably with serviced apartments, corporate housing includes properties designed for extended stays, usually longer than one month. These properties are secured for employees on long-term assignments, making them a good fit for construction worker accommodation, as well as workers in the healthcare, and media industries. 

Pros: 

• Offer extended-stay discounts
• Come fully furnished
• All-inclusive billing includes rent and utilities 

Cons: 

• Lacks 24/7 hotel services
• Often requires a minimum stay
• Less flexible than short-term accommodation

Best for: Contractors working on long-term, industry-specific projects

B&Bs and Guest Houses

Bed and breakfasts, or B&Bs, give business travellers the feeling of staying in a comfortable home away from home. With fewer guest rooms than most hotels, they also include a breakfast meal. Many guest houses and B&Bs are in historic buildings with plenty of charm, while offering a unique, personalised level of service. 

Pros: 

• Interaction with local hosts
• Breakfast included
• Cosy accommodation 

Cons: 

• Bathroom may be shared
• Lack of amenities like room service or gyms

Best for: Bleisure travellers, small teams, solo business travellers

Homestays

Like B&Bs, homestays allow business travellers to immerse themselves in the local culture by staying in someone’s house. Hosts often provide meals and personalised recommendations as part of the experience. 

Pros: 

• Cultural immersion by staying with locals
• Cheaper than hotels with meals often included
• Supports local economies

Cons: 

• Lack of privacy due to staying in a home
• Inconsistent amenities and Wi-Fi

Best for: Bleisure travellers who want an immersive experience, solo business travellers

Villas

Villas are usually more spacious than the everyday holiday home and come equipped with upscale amenities like private pools and gardens to create a relaxing environment for team-building activities. 

Pros: 

• Home-like comforts
• Full kitchens for self-catering
• Flexible spaces for meetings 
• Luxury perks like private pools and chefs

Cons: 

• May be located away from business districts
• May not include front desk support and daily housekeeping
• Variable quality compared to standardised hotels

Best for: Corporate retreats, small group travel, team-building and training sessions

Boats

For those wanting a unique experience, staying in a boat, or boatel, is an appealing prospect. These floating hotels are often stationed in serene city canals or ports, with peace and quiet provided during off-peak hours. For long-term flexibility, business travellers can opt for a private vessel, while those looking for a budget-friendly alternative to the usual hotel can choose a full-service boatel. 

Pros: 

• Unique, relaxing environment
• Convenient harbour and city centre locations
• Affordable alternate accommodation

Cons: 

• Limited space in cabins
• Potential for motion sickness
• Possible connectivity issues

Best for: Bleisure, business travel requiring a central location, event-based travel, team-building and project work

Holiday parks 

Holiday parks are a step up from camping in terms of services and comfort, while still offering access to the countryside and fresh air. Many include onsite sports facilities and entertainment, promoting a better work-life balance, while giving space for teams to brainstorm and bond. 

Pros: 

• Cost-effective compared to hotels
• Lodges and chalets include self-catering capabilities
• Stress reduction in natural settings

Cons: 

• Remote locations
• Lack of privacy and noise

Best for: Corporate retreats, remote workers, team-building sessions

Resorts

Like villas, resorts offer an ideal environment for corporate retreats and team-building events that blend work and leisure. Equipped with all the standard amenities you’d expect from a hotel, resorts go a step further with integrated relaxation features like spa services, recreation programmes, and all-inclusive fine dining. Many also include conference spaces to facilitate meetings. 

Pros: 

• All-inclusive pricing for accurate budgets
• Ample space for team building
• Convenient onsite amenities

Cons: 

• Exclusive services come at a higher cost
• Emphasis on leisure can distract from work tasks

Best for: Incentive trips, corporate retreats, onsite conferences and events

Hostels

Hostels may be associated with traditional dorm-style accommodation, but many also include private single and double rooms. For business travellers on a budget, hostels provide significant cost-saving potential. While you may share communal areas, this offers the opportunity to socialise and network with like-minded fellow business travellers.

Pros: 

• Save money on business travel expenses
• Communal areas provide a social outlet
• Many include work-friendly spaces with reliable internet

Cons: 

• Less privacy than other alternative accommodation
• Potential for a noisy environment 
• Lack of luxury services

Best for: Cost-saving business travel, solo business travellers

Fitting alternative accommodation into corporate travel budgets

Broadening your search beyond hotels can help save on accommodation costs. Pricing will depend on the type of accommodation, length of stay, and number of travellers in your group. 

Here are a few ways that hotel alternatives could save your company money:

• Reduced per-person costs: For group travel, corporate housing, apartments, and villas will usually cost less than individual hotel rooms. 
• Extended-stay discounts: Booking accommodation by the week or month often yields better per-night rates. 
• Access to kitchen facilities: Whether shared or private, most of the alternate accommodation examples we’ve listed offer kitchens, saving on the cost of dining out for every meal. 

To maximise these savings, you’ll want to book in advance and secure the best rates. 

You’ll also need to consider location and the cost of transportation to business hubs, as some alternative accommodation types are in rural areas. Is there public transport available, or will car hire be required? This could present an additional business travel expense. 

How to adapt your travel policy for alternative accommodation

To best integrate alternative accommodation into your company’s travel policy, you’ll want to first define criteria for their selection and booking. Key considerations will include: 

• Safety standards: Create a list of standard requirements for booking approval, such as CCTV cameras in public areas, 24-hour reception, and in-room safes. 
• Location standards: Set limits regarding approved destinations, neighbourhoods, and property types. 
• Digital infrastructure: Define which amenities are required for approval, such as a reliable Wi-Fi connection. 
• Booking and reimbursement: Specify approved platforms for sourcing and booking alternative accommodation, as well as spending limits on groceries for self-catering properties.

Taking aspects of safety, security, and connectivity into account will help ensure that travelling employees have freedom of choice, while still meeting duty of care requirements. 

How Booking.com for Business can help

With so many different types of alternative accommodation, finding a suitable fit can be time-consuming. With Booking.com for Business, you’ll have access to over 3+ million properties in a single travel management solution, including serviced apartments, B&Bs, resorts, holiday parks and options suitable for long-term stays. We’ve also made group business travel easier, as you can book for up to 30 people in a single booking. 

When you sign up for Booking.com for Business, you’ll immediately unlock 10% off select stays, including alternative accommodation, with automatic enrolment in our Genius loyalty programme. 

Use our filters to narrow down your options by safety features, required amenities, and location, then read reviews from over 300 million verified guests to ensure you’re making the right decision. Plus, you’ll be able to navigate business flights and car hires at the same time, for a fully connected itinerary.

Conclusion

As business travel accommodation continues to encompass a wider range of property types, businesses and their employees will have more options than ever. From short-term villa rentals to fully furnished corporate housing, consider hotel alternatives that best match your business trip’s length, scope, and purpose. For longer trips, this means looking at extended-stay apartments with competitive weekly rates, while for shorter trips it may mean looking at budget-friendly options like hostels and boats. 

As you compare all options carefully, consider not just the price but also factors like comfort, amenities, and connectivity. Finally, don’t neglect the importance of flexibility. Integrating alternative accommodation into your company travel policy will best meet the needs of the global hybrid workforce.