The market for reception and concierge services - Germany

1.2 Concierge service is an internationally successful industry

Reception and concierge services in office and residential buildings are now offered 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 to buildings. As such, they are becoming an important factor in the decision for or against new residents or businesses moving in. Indeed, they make it possible to manage both the operation and maintenance of the building and the diverse needs of its occupants.

In a **** study by Spherical Insights, this trend of outsourcing daily tasks to concierge services is increasingly being embraced by the affluent. The global concierge services market was estimated at USD ***.** million in ****, while revenue is forecast to reach USD ****.** million by ****, according to COVID-**. The market is projected to register a CAGR of *.**% during the period ****-****(***).

The Asia-Pacific region is projected to witness the fastest market growth. One reason for this is the high wealth in countries such as India, China, and Japan. According to Spherical Insights, China has *** billionaires (***), the highest geographic share in the world. Moreover, assisted private transportation services are expected to drive the market growth.

Global Concierge Service Market U.S., **** - ****, Market ...

1.3 The German market

The market for concierge services in Germany is still relatively young compared to other countries, but it is growing steadily. As a rule, concierge services offer a wide range of services , including everything to do with facility management, guard and security services, and economic services for companies and private individuals. Most service providers offer customized solutions for their clients and work closely with them to understand their needs and wants. A glimpse into the subfields of a concierge suggests growth in the national market for concierge services.

The market for building support, business services, and guard and security services Germany, ****, annual revenue in EUR billion Security and guard services CAGR = *.**% Building support CAGR = *.**% Economic services for companies and private individuals = *.**%. Source: ****

among guarding and security services, private guarding and security services have also seen an increase in turnover. Private security and guarding services Germany, ****-****, sales in EUR bn Source: ****

2.1 Concierges particularly in demand in major cities

In Germany, growing urbanization is becoming an important pull factor for increasing demand for concierge services. More and more affluent people are drawn to cities as a result of this trend, which in turn increases their need for security and convenience. As a result, concierge services are proving to be increasingly in demand and popular. The service is therefore becoming more and more in demand, especially for residential and office buildings . The demand for this type of service is therefore logically very localized: It is an urban demand, which within cities is mainly found in business districts and affluent neighborhoods with high real estate prices, Handelsblatt reports.

Urban and rural population trends Germany, ****, in % Source: ****

the number of Germans living in urban regions is expected to continue to rise: Urban population growth in Germany Germany, **** - ****, number of inhabitants Source: ****

2.2 Socioeconomic factors for residential concierge: urbanization & demographic change

Increasing urbanization:

The Zukunftsinstitut reports trends in large cities that are giving rise to new structures of rural life, characterized by new mixed functions and cooperative lifestyles. This is reflected in the growing popularity of co-living, co-working and co-gardening concepts as well as the development of the **-minute city. Here, the integration of different functions and offerings creates a new kind of sense of community in which people actively engage and network. These trends reflect the growing desire for a sustainable, social and collaborative lifestyle that meets the needs and challenges of our time. These needs include concierge services.

Especially in densely populated cities, these innovative concepts are playing an increasing role. At the moment, there are a large number of new construction projects in Berlin that offer both small apartments for traditional residential use and so-called serviced apartments for commercial use. **.*% of Berlin's households are single-person households, with an upward trend.

Source: ****

While concierges used to be found mainly in fancy private homes and hotels, they can now also be found in many co-living and co-working spaces. This development shows that the need for a personal contact person to help with a wide variety of concerns continues to exist and ...

2.3 Office properties, a growing demand for reception and concierge services

In addition to their role as concierge, employees may also be employed in corporate office management. In some cases, reception and office management are combined to serve as an interface. Employees who serve as receptionists or concierges are often the first point of contact for guests and employees. Their duties include overseeing cleanliness and order, managing the switchboard, and coordinating the booking and occupancy of conference rooms.

The increased demand for office buildings with central locations and innovative concepts, as well as the trend toward co-working and remote working, are having an impact on the development of new buildings in German cities. The chart shows that the A-cities (***), indicating the growing importance of these cities as locations for innovative and sustainable office buildings.

Development of office properties in Germany's major cities  

For employers, concierge services offer an enormous advantage: it is about ensuring the well-being of employees and their maximum availability at work. The demand for concierge services is exacerbated by the difficulty professionals, especially executives, have in finding a balance between their professional and personal lives.

Therefore, offices in the future will need to provide good working environments to meet the increased demands. The relevant factors are increasingly the attractiveness ...

3.1 The emergence of the market

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

An old profession

The janitorial profession is primarily focused on residential buildings, as the original role was to arrange for travelers to visit and ensure the safety of residents. Nowadays, however, a janitor can work in different types of facilities: residential, commercial, schools, industrial, etc. The janitor performs various tasks: he takes care of the cleanliness of common areas, takes care of small renovation works, informs visitors, opens and closes the facility or takes care of the technology of the building. He can also be responsible for a private property during the absence of the owners, for example, on behalf of property managers, the state or co-owners, he also plays the role of a mediator between the people in the building.

Independent housekeepers hired directly by co-owners or developers make up a large part of the market, although it is impossible to quantify this. However, in recent years, more and more companies have emerged to provide reception and concierge services to meet the demand of increasingly important businesses and "high-end" residential buildings.

The number of companies offering janitorial services ...

3.2 Value chain

3.3 Company on the market

Several types of companies can be identified that are present in the reception and janitorial services market in Germany.

These include:

Companies that specialize in concierge services of private individuals. This includes, for example, the on-call concierge service provided by Agent CS GmbH) Companies that provide concierge services for office and real estate developers: Contora Concierge Service, Carter Benson, Agent CS GmbH, CareTaker AG Companies that do not specialize in any segment and offer all concierge services: RAS Service, Gamma & My

Increasingly, online concierge services are also being offered.

4.1 Product portfolio of the companies

Companies in the concierge industry advertise extensive service offerings for every occasion that go beyond reception services. The offer is very individually adapted to each customer and can therefore not be generalized. Some even offer business consulting functions in the area of employee and customer satisfaction. Accordingly, prices are only quoted on request. A price indication and influencing factors are presented in section *.*. A clear specialization can only be identified between the segments of private customers, corporate customers and real estate developers as customers . The following overview shows the services offered:

Source: ****

4.2 Price indication and influencing factors

The cost of a concierge service can vary depending on the type of building and the specific requirements and services. Here are some rough estimates for the cost of a concierge service in different types of buildings:

Office Building: the cost of a concierge service for an office building can vary depending on the size of the building, the number of tenants, and the specific services the concierge provides. It is usually a cost of several thousand dollars per month. Private individuals: A concierge service for private individuals can also vary depending on the specific requirements and services. Usually, the price ranges from a few hundred to several thousand euros per month. Residential: a concierge service for a residential building can cost from a few hundred to several thousand euros per month, depending on the size of the building, the number of units and the specific services the concierge provides. In the area of serviced housing, i.e. concierge for residential properties, the costs are usually passed on to all tenants and billed with the utility bill.

Any profit margin can be derived from a salary analysis by Stepstone:

Concierge Salaries in Germany Germany, ****, in TEUR Source: ****

The annual salary of ...

4.3 Digitized reception and concierge service

As in many other areas, the trend is toward digital concierge services. For example, more and more companies are offering digital services for receiving people in buildings. These new offerings are aimed at the same customer base as the "physical" service companies, but the range is necessarily more broadly defined.

4.4 The evolution of concierge services for Airbnb & Demographic change as an opportunity for concierge services.

In recent years, the number of Airbnb accommodations in Germany has increased significantly, and in **** a new high was reached with about ***,*** accommodations. Most of these accommodations are located in the metropolitan areas of Berlin, Munich and Cologne. Following this rapid development, more and more companies are adding concierge services to their offerings and specializing in concierge services for Airbnb renters.

Number of Airbnb accommodations in Germany from **** to **** Germany, ****-****, Airbnb Source: ****

The increasing number of Airbnb accommodations in Germany has created a growing demand for professional concierge services on the platform. Companies specializing in such services offer owners a wide range of services to facilitate accommodation management. These include, for example, organizing check-ins and check-outs, interacting with travelers, maintaining accommodations, and optimizing offers and prices on the platform. This type of service is mainly targeted at Airbnb multi-owners who offer multiple accommodations on the platform and want to outsource their presence and management tasks. The sector offers great potential for companies operating in this area and specializing in professional concierge services, due to the ever-growing number of multiple owners. Companies that specialize in this area include the following:

Source: ****

5.1 Occupational Safety & Health Act & Working Hours Act

Like all other employees in Germany, concierges are subject to the Occupational Health and Safety Act (***) and the regulations on occupational safety. The most important regulations that must be complied with when providing concierge services are:

Risk assessment

The employer must examine the working conditions and activities of concierges for possible hazards and take appropriate protective measures(***)

Safety equipment

The employer must ensure that suitable safety equipment is available, such as fire protection equipment or emergency call systems(***)

Training and instruction

The employer must inform the concierges about the potential hazards of their work and train them in the proper use of safety equipment and measures(***)

Working hours and breaks

The employer must ensure that concierges are able to observe legally prescribed working hours and rest periods. Working hours also include legally prescribed breaks. Working hours and rest breaks are stipulated in the Working Hours Act.

Compliance with the minimum wage

Concierge service providers must comply with payment of the statutory minimum wage. The minimum wage in Germany is **€ per hour.

6.1 Segmentation

• CareTaker AG
• Carter Benson GmbH
• Contora Concierge Services
• Agent CS GmbH
• RAS Services GmbH