The market for reception and concierge services - France

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 factor in the decision to move in (***) with 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: ****

The segment of concierge services for buildings includes companies like Capitol Concierge in Washington DC, Boston Residential Concierge in Boston, Building Security Services in New York, Butler in Hong ...

1.3 The French market

The market of reception and concierge services includes a large number of different players. Insee figures indicate a decline in the last few years in the turnover of "Combined support activities related to buildings". These activities include routine internal cleaning of buildings, maintenance, garbage disposal, guarding and security, mail distribution, laundry and related support services. These activities have suffered from the health crisis, and are also suffering from the outsourcing of certain services and the lack of housing for janitors and building employees in new buildings being built.

Index of revenues for Combined Building Support Activities France, ****-****, base *** in **** Source: ****

Change in the number of janitors and building employees France, ****-****, base *** in **** Source: ****

However, at the same time the French concierge market as a whole is driven by increasingly specialized players: corporate reception and concierge companies specializing in employees' needs, Airbnb concierge companies specializing in rental management. Digital security and concierge services are gradually replacing the physical presence of a building concierge in the entrance of buildings. The market is also facing competition from private concierge services that are expanding on the French market, with revenues doubling between **** and ****. In their search for time and balance between their personal ...

2.1 A very localized demand

The main consumers of reception and building concierge services are real estate developers, both in the case of residential and office buildings, as well as co-ownerships or companies directly.

The demand for this type of service is thus logically very localized: it is an urban demand, and located within cities mainly in business districts and affluent neighborhoods where real estate prices are high. Although the type of service is different, the uneven distribution of this type of service across France is similar to the distribution of building janitors, who are overwhelmingly located in the Paris region. According to a **** study by Opco EP, the "janitors and building employees" branch, which includes **% of concierges, will have a total of **,*** employees in ****, **% of whom will be located in the Paris region.

2.2 The premiumization of services within residential buildings

The demand for reception and concierge services in buildings is partly driven by residential buildings and in particular by the market for shared services units and luxury residential real estate. A concierge service can be presented as a major asset to ensure the proper management of the building as a whole, but also to best satisfy the needs of residents and their security.

An ObSoCO study shows that in ****, **% of French people would be interested in a concierge service to help with daily life.

The most popular shared services France, ****, in % Source: ****

In addition to "comfort" services, security is a key issue in residential buildings. According to a study published by the website Mon Immeuble en **** on a panel of buildings in which **% of condominiums have a janitor, */* of respondents indicate that the role of the janitor for security is important (***).

Security role of a building superintendent France, ****, in Source: ****

Within residential buildings, reception and concierge services can thus meet a dual demand for security that does not diminish and for help with daily tasks, whether related to housing maintenance or not.

2.3 Office real estate, a growing demand for reception and concierge services

After the period of the Covid crisis that led to the belief that office space was on the verge of extinction, companies and investors are back on the market. The market is now showing remarkable growth in the Paris region, especially in the most central districts. For the year ****, the market is estimated to have invested **.* million euros and to have placed a total demand of *.* million square meters. However, this demand is highly localized within the Paris region, with **% growth in the Central Business District (***) but a decline in less central areas such as the inner suburbs and the peri-Défense zone.

Take-up of office space in the Paris Region, by geographic zone Paris Region, ****-****, as a percentage Source: ****

As working from home has become a permanent feature of business practices, offices are also being rethought and "flex offices" are being developed, as in the new Latitude building in La Défense, which includes a wide range of services and restaurants. Thus, to attract new talents, companies are increasingly pushed to invest in "new generation" offices, which become the reflection of their employer brand.

This is the case for Roland Berger, which has moved into the Jean Goujon building ...

3.1 A fragmented market

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

An ancestral profession

The building janitor's job is primarily aimed at residential buildings, since the original role was to organize travelers' visits and to ensure the safety of the inhabitants. However, today, a building concierge 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 during the absence of its owners ... Employed by real estate developers, by the State or by co-ownerships, the concierge also plays the role of an intermediate between individuals in the building.

Independent concierges, employed directly by co-owners or real estate developers, represent a large part of the market; although it remains impossible to estimate quantitatively. Nevertheless, in recent years, in order to meet the demand of increasingly important companies and "premium" residential buildings, we are witnessing the development of more and more companies offering reception and concierge services.

The emergence of reception and concierge ...

3.2 Value Chain

3.3 Companies in the market

Several types of companies can be identified on the market of reception and concierge services in France.

Companies specialized in corporate concierge and/or reception services: EasyLife, Jour de Printemps, Merci La Conciergerie, Guardian, Alizéehôtesses, Agence Diva; Companies specialized in residential concierge services: UpperKey, Urban Service, Fidensio; Companies offering temporary janitorial services, mainly for maintenance of common areas of residential or office buildings and cleaning services such as Eco*net and Planète Gardiens; Companies offering concierge services in moving: Selectra, Conciergerie Déménagement or Les Artisans Déménageurs; Companies offering Airbnb concierge services: GuestReady, Greeter, UpperKey.

4.1 Typology of the offer

The offer in concierge and reception services is very varied; it can go from the concierge of a residential building to a complete service of reception and high-end conciergerie within an office building. Here is a non-exhaustive list of companies and the different services they offer on the French market, knowing that all companies offer rates adjusted according to the services and accommodation, provided on estimate:

Source: ****

4.2 The development of concierge services for Airbnb

The Airbnb rental market in major French cities

The world leader in seasonal rentals, the Airbnb platform offers numerous accommodations in French cities and even generates its second largest turnover in France. The latter has seen strong growth over the past few years, which is a testament to the evolution of the number of accommodations that are put up for rent.

Airbnb France revenue France, ****-****, in millions of euros Source: ****

Adapted concierge services

Concierge services for Airbnb correspond to the various concierge services intended for the platform's owners who do not wish to manage 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.

Source: ****

4.3 Digitalized reception and concierge services

As with 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.

5.1 Regulations

According to the Ministry of Labor website, a building's concierge "ensures compliance with the regulations of a collective building or a building complex. He/she ensures or coordinates the daily services due to the residents, owners and tenants." His or her missions may vary between the following tasks: "ensuring the opening and closing of doors, informing visitors, receiving and distributing mail in individual boxes (***), maintenance of common areas, small maintenance, heating. He/she supervises the buildings and common areas as well as the equipment with the application of safety rules."[***]

In the case of classic concierge services, which are not related to real estate transactions or management, the service provider is not required to hold a real estate professional card.

If the professionals of the reception or concierge services of a building are brought to manage leases of rent, the collection of rents, the purchase or the sale of apartment, they must have a professional card obtained near the Chamber of Commerce and Industry certifying certain criteria: professional aptitudes, morality, financial guarantee, certificate of professional liability insurance. This card is valid for * years, and its renewal requires a training of ** hours per year or ** hours the last year. [***]

The labor code ...

6.1 Segmentation

• Easylife
• Wiidii
• Fidensio
• Jours de Printemps Conciergerie
• Guardian
• GuestReady
• UpperKey
• Hostnfly
• Smart renting
• Checkmyguest
• Icare City