Wellington gets pricey

Wellington gets pricey

Accommodation bookings in Wellington are on the up as supply issues face Auckland, according to new figures released today by FCM Travel Solutions, in the first of the Spotlight on Business Travel Trends 2017 report, which show a 27% increase in accommodation bookings in Wellington for the first quarter of 2017.

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

Andy Jack, general manager FCM Travel Solutions New Zealand, says the report has shown businesses are having to adapt their domestic booking requirements as a result of supply issues, predominantly 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,’ he says. ‘Auckland is heading into what could be described as a significant supply and demand issue and as a result, rates are increasing.’

Jack says there has been a 12% 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,’ he explains.

Jack went on to 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,’ he says.

‘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.’

Jack adds, 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.’