The market for reception and concierge services - Belgium

1.2 The global market

The global market for building reception and concierge services is driven by the premiumization of services offered in office and residential buildings in the world's largest cities. From New York to Melbourne, via London, Paris and Frankfurt, reception and concierge services are taking their place at the entrance of buildings. As a result, they are becoming a major new argument in the installation (***) of new residents or companies. Indeed, they allow the management of both the operation and maintenance of the building, and that of the most varied needs of its occupants.

A **** study by Spherical Insights notes this trend of outsourcing daily tasks to concierge services by a growing wealthy clientele. It estimates that this market would be worth $***.* million in ****, and is expected to grow at a CAGR of *.*% over the period ****-****. Although private concierge services are different from concierge buildings, it is a trend that also impacts the demand and therefore the market for the latter.

Concierge services market Worldwide, ****-****, in millions of dollars Source: ****

In the building concierge services segment, there are companies such as Capitol Concierge in Washington DC, Boston Residential Concierge in Boston, Building Security Services in New York, Butler in Hong Kong, ...

1.3 The domestic market

It is very difficult to estimate the overall market for reception and janitorial services in Belgium. Nevertheless, by looking at code **.* Combined support activities for buildings, we can obtain a rather reliable approximation of the market. The companies registered under code **.* are those offering the following services in buildings: routine interior cleaning, maintenance, garbage disposal, guarding and security, mail distribution, laundry and related services to support operations in the facilities. The market for combined building-related support activities will reach *** million euros in ****, a figure that will grow by **% compared to ****.

Turnover of companies registered under code **.* Belgium, **** - ****, in millions of euros Source: ****

It can be seen that since ****, the market has been growing steadily, despite a slight halt in ****. Nevertheless, the health crisis seems to have a positive effect in the long term, with the market really taking off from ****. This increase can be explained by the diversification of offers. Indeed, in addition to independent janitors, mainly in charge of residential buildings, more and more companies are entering the sector. These are companies specialized in reception services for companies, residential concierge companies or even companies specialized in Airbnb concierge services.

2.1 Urbanization, the primary driver of demand

In ****, without taking into account the state cities or islands, Belgium was the *th most urbanized country in the world behind Kuwait, China and Qatar[***].

Urban population in Belgium Belgium, **** - ****, in % of population Source: ****

A large majority of Belgians live in houses, rather than in shared buildings. In fact, in ****, **.*% of dwellings will be houses, compared to an average of **.*% in Europe[***]. Nevertheless, the number of buildings and apartment blocks is growing, with an annual growth rate of around *.*%.

Number of buildings and apartment blocks Belgium, **** - ****, in number of buildings Source: ****

The increase in the number of buildings is the primary driver of demand for reception and concierge services. Indeed, each new building represents an opportunity to expand the janitorial sector.

2.2 Security and well-being, the two raisons d'être of the concierge market

Residents in constant search of security

One of the reasons for the development of concierge services in apartment buildings is the search for greater security. Indeed, the primary role of the building janitor is to monitor the entrances and exits of the building. However, the feeling of insecurity is on the rise in general in Belgium and mainly in big cities like Brussels. According to the police report ****, **% of Brussels residents felt insecure occasionally or even regularly, compared to **.*% in ****.

Brussels region, ****, in % Source: ****

The increase in the feeling of insecurity can be explained by various problems affecting both public and private spaces. As far as residential buildings are concerned, the main problem remains the risk of burglary, for almost half of the inhabitants of the region.

Are residential burglaries a problem in your neighborhood? Brussels Region, ****, in % Source: ****

Many residents would be more reassured if their building was equipped with a surveillance system or a concierge service.

Concierge services for well-being at work

Well-being at work is a notion that is becoming increasingly important in the lives of Belgians. It is no longer just about having job security or a high salary, but it is becoming necessary to be able ...

2.3 Premiumization and diversification of demand

Deserted office buildings

The office real estate market is going through a period of instability in Belgium, as companies are still defining their hybrid strategies. Brussels is by far the region with the highest concentration of office buildings (***). By ****, take-up has decreased by **% in Belgium. This phenomenon is explained by the desertion of offices since the pandemic and the massive development of teleworking and hybrid formulas[***]. Thus, the vacancy rate of office buildings is on the rise and companies have to rethink their strategies to optimize space and presence.

Vacancy rate of office buildings Brussels, **** - ****, as a % Source: ****

Most companies are opting to reduce their space: the European Commission has announced that it will reduce its office space by ** to **% over the next few years; Proximus, which has occupied two entire towers until now, wants to concentrate in one; and Total says it will reduce its surface area by **%[***]. This reduction of sites necessarily undermines concierge services for companies, which only exist if the face-to-face service remains. Nevertheless, if the demand is no longer driven by the increase of workspaces, it is supported by * factors: the premiumization of services offered by large companies and the development of coworking spaces.

An ...

3.1 A fragmented market

The market for reception and janitorial services is fragmented and includes many players, ranging from independent building janitors to specialized BtoB companies.

An ancestral profession

The building janitor's job appeared as early as the Middle Ages, and was then similar to the function of knight, whose role was to protect the castle. Little by little, doormen and Swiss, who guarded the carriage houses and took care of the visits of the noble and upper middle-class families, appeared. The function became more democratic and more and more buildings and houses were equipped with a concierge, who ensured the security of the building. Little by little, the perception of the janitor's job deteriorated and this term was given a pejorative connotation.

The janitor's job is primarily intended for residential buildings, since the original role was to organize visits by travelers and to ensure the safety of the inhabitants. However, today, a building janitor can work in different types of establishments: residential buildings, professional premises, schools, industrial buildings... The janitor performs different types of tasks: he ensures the cleanliness of common areas, takes care of small renovations, informs visitors, opens and closes the establishment, he can also be in charge of a private property ...

3.2 Value Chain

3.3 Companies in the market

We can identify several types of companies present on the market of reception and concierge services in Belgium.

Companies specialized in residential and/or corporate concierge services: Custom services, Welcome at work, Concierges Brussels, HM & FS, BM Conciergerie, Protexys services, Savviva... Event management companies offering concierge services such as DDM Prestige. Companies offering temporary janitorial services: these are mainly cleaning companies, specialized in the maintenance of common areas of residential or office buildings. Examples include Full Clean and Ecocleaners. Real estate companies offering concierge services : Honesty, Couet & associés... Other companies present in the segment but offering more specific services: for example Simply move offers specialized concierge services for removals or Secury* which offers security services for buildings via agents capable of providing reception and receptionist duties.

4.1 Type of offer: various services

If the concierge is above all a privileged interlocutor in the building, the reception and concierge services are multiple. They depend first of all on the clientele to be addressed. For office buildings, it is mainly a matter of welcoming visitors and orienting them in the building. The receptionists are also in charge of calls, mail and building security. Conciergerie services don't stop there, as they focus on employee well-being. Many companies also offer activities, small stores and services that can be booked online to facilitate the management of private and professional life.

The services offered in residential buildings focus on the quality of life of the occupants: cleaning services, maintenance of common areas, laundry, provision of a driver, reservations for plays and other entertainment...

Below is a non-exhaustive list of the different services offered in Belgium:

Source: ****

4.2 The development of concierge services for Airbnb

The Airbnb craze in the major Belgian cities

The development of Airbnb in the major Belgian cities is growing rapidly. Indeed, more and more local owners are making their properties available on the platform. The number of new hosts in Belgium has doubled between the second quarter of **** and ****[***].

The different types of owners offering their accommodation(***) on Airbnb Brussels, ****, in % Source: ****

In addition, Airbnb offerings are affecting more and more cities. Those with the most new guests between **** and **** are Mechelen, Oudenaarde, Antwerp, Hasselt and Dinant.

Adapted concierge services

Concierge services for Airbnb correspond to the various concierge services intended for owners of the platform who do not wish to manage the arrival and departure arrangements and potential interactions with tenants. These services are therefore outsourced to specialized companies, which perform different types of tasks: managing arrivals and departures, contact with travelers, maintenance of accommodations, management of listings, sometimes even optimal pricing on the site... This new type of service is mainly aimed at Airbnb multi-owners, i.e. individuals/companies offering several accommodations simultaneously on the platform. As mentioned above, these multi-owners are becoming more and more numerous, and therefore represent a strong growth potential.

4.3 Digitalized reception and concierge services

As for many other sectors, the trend is towards digital concierge services. Thus, more and more companies are offering ***% digital services for the reception of individuals in buildings. These new offers are aimed at the same clientele as the "physical" service companies, but the offer is necessarily more limited.

4.4 Private concierge services, new competition

The services offered within buildings are competing with private concierge services, which allow individuals to delegate everyday tasks. These concierges take the form of personal assistants, available on an as-needed basis to perform a multitude of activities: from making appointments to childcare. The private concierge offers similar services to premium concierge companies, but does not cater to a building or condominium. They target individuals, not groups. Most of the time, private concierge companies offer a range of services that can be booked online. In some cases, an individual can be assigned a permanent personal concierge, who is responsible for organizing the tasks delegated to him/her.

The services offered by private concierges are multiple and the rates vary from one offer to another. Nevertheless, we can take a look at the offer of Concierge Brussels to have an idea of the pricing according to the tasks:

Other companies, like Custom Services, offer subscriptions:

5.1 National regulations

Regulations concerning the building janitor profession

Building janitors are grouped together in the Joint Committee for Building Management, Real Estate Agents and Domestic Workers (***).

Working hours

The working time for a full-time employee is fixed at ** hours per week. All working hours must be stated in the work regulations. Under certain conditions, companies may modify the daily or weekly schedules, as long as the average of ** hours/week on an annual basis is respected.

Wages

Salaries are set according to a scale depending on the category of duties. In January ****, salaries were increased by **.**%. The salary barometer for class *** is available here.

Supplemental Pension

Employers in the property management sector are required to make a contribution towards the supplementary pension of employees. These contributions are deducted from the gross salaries. The pension fund invests these contributions of *% against a guaranteed return.

Leave plan

An employee may be absent from work for a specified period of time, in exchange for normal pay, in the following cases family event, fulfillment of a civic obligation, fulfillment of a civil mission, or in the event of a court appearance. The authorized periods of absence are listed here.

Dismissal

After dismissal or termination for force majeure, ...

5.2 Regional regulations

Brussels

The regulations concerning the janitors of schools and extracurricular establishments vary from one municipality to another and are established by municipal decrees.

Wallonia

A decree of the Executive fixes the rules concerning janitor services for buildings belonging to the Walloon region or rented by it and assigned to its services: Decree of the Executive of October **, ****. This decree clarifies the designation, the missions, the rights and obligations in relation to housing as well as the modalities of replacement and termination of function.

In order to qualify for the position of janitor in Wallonia, the individual must:

Perform level D duties; Justify a favorable evaluation; Not be under a final disciplinary sanction that has not been cancelled.

6.1 Segmentation

• Custom services
• Welcome at work
• Le Concierge de Bruxelles
• HM & FS
• BM Conciergerie
• Protexys services
• Savviva
• Optimalis
• Bringme
• EasyDay
• Teleportel