Supply issues change New Zealand business travel's domestic accommodation landscape

Auckland cityscape
Media Releases 15 May 2017

 

  • Wellington accommodation bookings soar
  • Wellington leads the country with the highest accommodation rates
  • Increased airline carriers to New Zealand bring additional crew, placing demand on Auckland accommodation
  • Businesses look outside the main centres for accommodation options

Accommodation bookings in Wellington soar as supply issues face Auckland and Wellington.

Figures released today by FCM Travel Solutions, in the first of the Spotlight on Business Travel Trends 2017 report,  show a 27 per cent increase in accommodation bookings in Wellington for the first quarter of 2017.

Figures also show the accommodation booking increase has driven prices in the centre up with a 10 per cent increase in the average rate per night in Wellington.

Andy Jack, general manager FCM Travel Solutions New Zealand, said the report has shown businesses are having to adapt their domestic booking requirements as a result of supply issues, predominately in the main centres.

“It’s not surprising that Wellington’s room rates exceed other centres, it’s our nation’s capital and requires a lot of business travel traffic. Auckland is heading into what could be described as a significant supply and demand issue and as a result, rates are increasing.

“We have seen a 12 per cent increase in room rates in Auckland for the first quarter alone. As new airlines continue to come into the New Zealand market, additional accommodation options will be required, putting pressure on the Auckland accommodation supply,” Mr Jack said.           

Mr Jack went onto say that many New Zealand businesses are looking at smarter travel options to combat both the supply issues and the rate increases.

“Putting your travel spend into one managed environment ensures you have visibility across all travellers, giving businesses the opportunity to look for savings.

“For example looking outside the main centres is not only a good cost saving option, but provides a new and exciting destination for meetings and conferences,” Mr Jack said.

With domestic travel spend accounting for the majority of New Zealand businesses travel spend, it’s imperative business adapt. Focusing on a variety of accommodation options to maximise savings and will be key to satisfying the business needs in this changing environment.