At the 2024 Global Workspace Association’s Flex Forward conference, a panel zeroed in on a key issue for coworking and flex space operators: the role of booking aggregators.
Moderated by Hector Kolonas, known for his This Week in Coworking newsletter and work at Syncaroo, the session aimed to cut through the noise and clarify how these platforms impact operators’ bottom lines. The discussion focused on the demand aggregators generate, the revenue they help create, and how operators can better collaborate with these platforms for improved outcomes.
The panel featured three industry experts: Elba Elizondo Bortoni from Alliance Virtual Offices, Ben Wright from The Instant Group, and Caroline Hecht from Preferred Office Network (PON).
Each brought unique insights, sharing fresh data about their platforms’ impact on operators worldwide. Starting with the fact that, together, these platforms have driven nearly $141 million in revenue into flex space coffers this year, which set the stage for a data-driven conversation about the pros and cons of working with aggregators.
PS. When asked why each of the panelists (and their respective companies) agreed to take part and share their insights and data with you all, they highlighted the power of shared best-practices, improving industry transparency, and building even more trust.
Breaking Down the Numbers
The session began with a look at where aggregators see the most success. For example, Alliance Virtual Offices reported that 95% of its revenue goes to U.S. operators. In comparison, Instant Group’s revenue is more geographically spread—29% from the UK, 22% from the U.S., and the rest across markets like Australia, Germany, and Mexico. Preferred Office Network, in the middle of a global expansion, recently surpassed 1,000 vetted operators. This breakdown highlighted how different markets respond to flex space demand and how operators can adapt their strategies to take advantage of these trends.
The Ad Spend Question: Are Operators Competing With Aggregators?
A frequent concern among operators is whether they compete with aggregators for visibility, primarily through paid advertising. Katharine Chestnut from Alkaloid Networks in Atlanta raised this question, wondering if operators are up against aggregators in the battle for online attention.
The panelists shared data that challenged this assumption. Only a small portion of the demand and revenue generated by these platforms came from paid advertising. This surprised many in the audience, suggesting that aggregators are doing much of the heavy lifting to drive traffic to flex spaces without relying heavily on ads. When pressed, the panelists shared some creative strategies operators can adopt to stand out without overspending on advertising. Out of the three, Alliance shared that they are working with influencers to drive traffic (and revenue) to their operator partners to diversify from simply buying ads. PON noted that due to their focus on multi-market customers, competing for local market customers or search traffic just doesn’t make sense for them. Instant reminded the group that 50% of the demand they take to market is through their humans, relationships and the 40 different corporate portfolios they manage. Ben also notes that Instant owns around 50 affiliate sites that also turn traffic and search volume into flex space demand from new and more traditional office customers.
Flex Space Trends: What’s Driving Demand?
Another key topic was the types of products currently driving revenue in the flex space market. Alliance reported that virtual office products were their top seller, although meeting rooms are growing. Instant Group saw the most revenue from private offices and suites, with virtual offices and coworking spaces also contributing. Preferred Office Network showed a similar trend, with private-office-like products accounting for 60% of revenue, while meeting rooms made up nearly 28%.
Kolonas asked the panelists which one product type operators should focus on to capture more revenue.
The consensus was that while private offices and suites remain core offerings, virtual offices and meeting rooms present growth opportunities. This is due to more companies looking to host offsites or, because of layoffs, more individuals starting new businesses with only an initial need (or budget) for virtual offices.
Manual vs. Automated Bookings: The Future of Flex Space Operations
The conversation shifted to the operational side of the business, particularly the trend toward automating bookings. One data survey participant asked about the balance between manual and automated bookings. The data revealed that while most bookings still require manual intervention, Instant Group saw 60% of its revenue come from auto-confirmed bookings, indicating a clear shift toward automation.
The panelists agreed that while manual processes remain common, automation is the future for operators looking to streamline operations and reduce administrative tasks. Offering real-time availability could be a significant advantage for operators aiming to increase bookings with minimal friction.
Are Operators Just Pins on a Map?
The panelists were also asked whether operators are merely “pins on a map” used to secure large enterprise contracts. This question addressed a broader concern: aggregators might prioritize winning big corporate clients over driving utilization for individual spaces.
The panelists shared insights showing a range of client sizes across their platforms. Preferred Office Network reported that 71% of its revenue came from firms with over 5,000 employees, while Instant Group drew most of its revenue (64%) from companies with 100 to 5,000 employees. Alliance, meanwhile, focused on small and medium-sized businesses, with 90% of revenue coming from companies with fewer than ten employees.
This diversity in client profiles shows that aggregators aren’t solely focused on enterprise contracts; they work with companies of all sizes. However, operators’ success depends on how they position themselves within the aggregator ecosystem. Tailoring offerings to fit the types of clients using these platforms is critical to maximizing revenue.
All panelists focussed on the fact that their core incentives are tied to providing choice to the market, and turning corporate and other demand into flex space revenue.
Key Takeaways for Operators
To wrap up, Kolonas asked each panelist to share one actionable tip operators could implement immediately to boost their earnings. Suggestions ranged from optimizing online listings for SEO, to improving customer response times. The overarching message was clear: operators who actively engage with aggregator platforms, diversify their flex space offerings, and streamline their booking processes stand to gain the most from the growing demand for coworking spaces.
Conclusion
With nearly $141 million in revenue generated this year (just between the three represented on stage), aggregator platforms are proving to be a significant resource for operators. However, the session also emphasized the importance of proactive engagement and the need to invest in technology to support doing so through automation. By understanding market trends and positioning themselves effectively within aggregator platforms, operators can thrive in this fast-evolving industry.
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The panel was summarized by Mike LaRosa at ThisWeekInCoworking.com for the GWA, and the wider global coworking community.
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