Auckland’s acute hotel squeeze sees business travellers turn to Airbnb. Photo / 123RF One of the country’s biggest corporate travel managers says pressure on Auckland hotels has forced it to use Airbnb for some of its clients.
Orbit Travel said there was growing resistance to paying room rates of up to $700 a night at peak times.
Managing director Paul Rennie said the influx of overseas tourists meant the no vacancy sign was increasingly being seen for business travellers in Auckland and Wellington in particular.
Over the last year his firm had been booking increased numbers of guests into Airbnbs – entire properties rather than rooms in homes.
Orbit has annual sales of over $500 million with about 900 clients in New Zealand including a big chunk of government business.
Rennie said 8-11 per cent of his clients were now staying in Airbnb properties.The hotel rates were getting higher because of a growing shortage of supply."We’ve had some that have had to pay $700. That becomes more difficult and Government is not interested in paying anywhere near that. There’s elasticity around $240 to $260 a night but when push comes to shove it becomes questionable after that."While high hotel rates had not stopped businesspeople […]