Flight crew add to room shortages

The influx of new airlines to Auckland means it’s not only passengers putting the squeeze on hotels but also hundreds of extra crew.

A report by Flight Centre company FCM Travel Solutions finds Wellington hotels are also under pressure.

In Auckland, room rates have increased in the past quarter by 12 per cent.

Flight Centre general manager of corporate Nick Queale said cabin crew and pilots needed guaranteed four-star-plus lodging.

In the past 18 months 11 new carriers had started flights to Auckland and others had increased capacity. Besides other aircraft, there are at least four A380s a day arriving at Auckland, each carrying about 24 crew.

Any flight delays or disruptions can further complicate the problem.

“New carriers are coming in and that’s great for consumers but hotels aren’t coming on quickly enough,” said Queale.

“The size of the planes and the frequency means they do put pressure on them.”

Crew nights are particularly appealing to hotels as they provide consistent guaranteed occupied room nights each month, which can be at the expense of the corporate traveller — both in terms of occupancy and room rates.

In a Spotlight on Business Travel Trends report, FCM finds New Zealand has one of the lowest room-night prices in the world.

“However, this is fast increasing to be comparable to Australia,” the report says.

In 2017, the average room rate for three-to-fivestar hotels was $200 a night. By 2023 the average room rate nationwide is forecast to be more than $240 a night.

Andy Jack, general manager for FCM, said the report had shown businesses were 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.

“Auckland is heading into what could be described as a significant supply and demand issue and, as a result, rates are increasing,” Jack said.

Queale said it was important to treat reserving accommodation like flights; it must be done early.

FCM was interested in what Airbnb could offer but was not yet booking its clients through the service.