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Home / Business / Companies / Airlines

Bed squeeze: Airline cabin crew putting extra pressure on Auckland hotels

Grant Bradley
By Grant Bradley
Deputy Editor - Business·NZ Herald·
16 May, 2017 11:27 PM2 mins to read

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The first Qatar Airways aircraft arrives at Auckland Airport in February. Photo/Ollie Dale

The first Qatar Airways aircraft arrives at Auckland Airport in February. Photo/Ollie Dale

The influx of new airlines to Auckland means its not only passengers putting the squeeze on hotels but hundreds of extra crew who need top-quality accommodation.

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 accommodation every night.

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 and they have about 24 crew.

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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.''

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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, 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 five star hotels was $200 a night. By 2023 the average room rate nationwide is forecast to be more than $240 a night.

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Andy Jack, general manager for FCM, 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,'' he said.

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

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

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