Today’s students live more digitally mediated lives than any previous generation. But what does this blurring of the lines between online and offline mean for the technology they expect in their accommodation? And how can emerging technology such as artificial intelligence (AI) enhance the performance of purpose-built student accommodation (PBSA) operators and developers?
Expert panel
- Antonia Berning, head of business intelligence, Collegiate UK
- Georgina Drewery, senior account executive, Yardi
- Richard Fisher, European head of portfolio management, Global Student Accommodation
- Michela Hancock, managing director, Greystar Europe
- Chloe Osborne, director of brand and marketing, This is Fresh
- Gawain Smart, chief executive, International Campus Group
- Chair: Andrew Saunders, contributing editor, Property Week
Property Week and Yardi recently co-hosted a panel of experienced industry professionals with interests right across Europe and the US to examine the sector’s latest tech trends.
We hear a lot about the importance of amenities and apps when it comes to the student experience, but what do students really want from tech in their accommodation?
Georgia Drewery: Before we even touch on apps or AI, I would say the first thing students want technology-wise is good Wi-Fi. A recent survey found that 80% of students across the UK and Europe ranked high-speed Wi-Fi as the most important technology. It is vital for communications, as well as for things like the digital check-in services that many providers now offer.
Chloe Osborne: I did a check-in weekend recently and it was surprising. After [students] get their welcome packs and room keys, the first thing they ask for is how to set up the Wi-Fi. Their mums and dads are still bringing in boxes of stuff but getting online and making sure that tech is working properly is a real priority for residents.
Michela Hancock: I think that’s so true. For this younger generation, everything is much more experience-based. Their parents might worry about the practical side of moving in, but they are more interested in [digitally] documenting everything from an experience point of view. So the Wi-Fi is like a utility, and if it doesn’t work quickly and conveniently, it can cause huge frustration.
Richard Fisher: These kids have grown up in a completely digital environment, unlike previous cohorts who have transitioned into the experience. So there is an absolute expectation there [around the instant availability of Wi-Fi and connectivity].
Antonia Berning: The best tech runs in the background and subtly enhances students’ lives. It is about the small day-to-day moments, like being able to log a maintenance ticket without sending an email or knowing when the washing machines are available without actually having to go to the laundry [room] and look.
How important are convenience and simplicity for student-facing tech?
GD: Convenience is crucial. As a student, you do not want to have to download numerous apps; for example, one app to make payments, one app to book maintenance and another for communicating with other students in the building. They will just want to go to WhatsApp or Facebook.
Students want an easy-to-use, simple but effective way of dealing with living needs and requirements.
Gawain Smart: WhatsApp groups are a killer – we cannot control them and they can spread false information that goes into the public realm. You want to avoid it but often you can’t; it is just going to happen.
MH: We have 30,000 student beds and we are finding that students don’t want to have to use lots of different apps; they just want one.
AB: If you can connect all these systems – laundry, maintenance, key-card entry – under one roof that gives everyone the same convenience and community, that is where you can really start to win.
A recent survey found that 80% of students across the UK and Europe ranked high-speed Wi-Fi as the most important technology. It is vital for communications
Georgina Drewery, Yardi
RF: I think there is an awful lot that operators can already consolidate. Yugo, our operating partner, has its own app, which covers booking, maintenance, parcel deliveries and outgoing communications.
The challenge is being agile enough to bolt more things on and keep up with changing customer expectations.
Should everything possible be automated, or is there still a place for the human touch?
GS: The real estate industry is so antiquated, everything is still done manually. We need to automate what can be automated but we [the industry] are a long way behind. For example, PBSA is moving towards hospitality and hotels, but some of us are only just starting to get booking systems.
What we have to figure out is what we want our people to do – this is a question I ask all the time. Do you want them running around checking vacuum cleaners in and out? Or do you want them to be able to spend more time with those who need some personal support? It is about putting humans where humans ought to be, and tech where tech ought to be.
AB: I think you can automate a lot, but maybe not everything. There will always be a role for some kinds of manual intervention. One maintenance ticket might be a super-easy response, for example; whereas another might require parts and be dependent on delivery times.
When I visit our sites, the onsite teams know their students by name, what is going on in their lives, when they have exams and so on. That is not something you can ever automate or create with technology.
MH: During Covid, we did a number of surveys and the number-one amenity that students rated was our onsite teams. So I think the best combination is to have digital checkpoints – like acknowledging a maintenance ticket has been received – but also that layer of human interaction. It is really important given the [young] age of the students we work with.
How can technology help to boost efficiency on the operational side of your businesses?
GS: There is so much to do in terms of operational tech – revenue management, pricing, sales and marketing. Are we optimising our pricing through our sales season? Even things like being able to control the heating in every room. One problem is cost. You can reduce operating costs once [this tech] is up and running, but there is a cost in getting up and running in the first place.
GD: What we, and many of our clients, are doing is introducing chatbots throughout the booking and leasing journey, and as a result of this, 80% of out-of-hours messaging is being picked up by the chatbots. They can answer questions about the different unit types on offer, for example, or the availability of all-female rooms and help take some pressure off the leasing staff.
What role is there for AI, and where are you all on your AI journey at the moment?
GS: I would say that we are at the point when we are trying to find a problem to solve. We know AI is going to be a force to be reckoned with that will majorly impact our workforce composition and our businesses, but how quickly should we start using it? Should we be early adopters or wait and see a little bit?
I am excited about the analytics side of AI – responding to questions like ‘why did my rental rate slip in November?’ That is more where I see the value right now. Investors shut down when they hear you say ‘I have a feeling about why this is happening’. What they want is the data to back it up.
There is not just one kind of student. How do you have one brand that can serve multiple audiences in multiple cities, with different requirements in terms of amenities and price points?
Chloe Osborne, This is Fresh
You have to challenge the way you do things all the time, and the only way you can really do that is with good data.
CO: Regarding training, it is about getting our people and processes ready, too. That is such a key thing with AI. How do we make sure we have an AI-ready workforce and AI-ready processes? We almost need a single point of truth so that we can build and grow how we use it going forward.
AB: AI is not magic dust you can just sprinkle on your organisation. Before you can really think about implementing AI, you have to make sure your data and your information structure are ready. Basic things like saving different versions of the same file in different places so some are more up to date than others; if you don’t know what your source of truth is, you cannot expect AI to either.
You need to tag up your information in a way that AI can understand. Once you are happy with your source of truth, then AI can do some really cool stuff.
RF: One role for AI is monitoring utility usage and consumption. We monitor room temperatures and oxygen levels – a room might be at 28 degrees, but also have a high oxygen level. That is because the window is open; the resident has not worked out how to turn the heating down. Straight away, that is a big positive for ESG and also provides a financial return to investors.
What about the role of tech in building and marketing a PBSA brand?
CO: There is not just one kind of student. How do you have one brand that can serve multiple audiences in multiple cities, with different requirements in terms of amenities and price points? There are so many different keywords that are typed into Google searches for accommodation; it is key we use data to make sure our marketing and branding are in the right place at the right time.
There is also a big change under way in how our audiences consume advertising – anything overly branded will be swiped past straight away. Where do the eyeballs go on ads, where can we subtly put our brand so people convert? You can’t just slap them in the face with it and expect them to come back.
AB: It is using tech to really target and personalise your audience. A 17-year-old who is still at school is very different from someone who is in their second year at university, and they will respond to different messaging.
What trends, tech or otherwise, can we expect to see in PBSA over the next year or two?
GS: In Europe, I think we will see more consolidation of operators. PBSA is moving towards the hotel industry, where you need scale and it is hard to operate just a couple of assets.
There may also be bifurcation between ownership and operators, with a bigger focus over time on opcos [operating companies]. Good operators will really make this asset class hum.
RF: The student experience, not just in terms of having fun in the amenity space, but also offering work experience or career advice. Adding to their toolbox so students are more employable when they come out of the other side.
Also, divergence across the sector; the strong universities will continue to get stronger, but there is risk to some of the weaker institutions. That is going to play out in the sector, depending on geography and which institutions you are aligned to, but also in terms of quality of stock.
GD: In terms of the tech landscape, greater flexibility. We are seeing more students moving into BTR [build to rent] developments, and also more PBSA operators and developers entering the BTR market. Giving them all tools that are flexible enough to allow them to choose different tenures and lease types will be a growing trend.