Travel trends for the construction industry
Changes for air and hotel contracts
Airlines and hotels have been forced to reassess their contracting arrangements following the pandemic. As a result, the contracting environment has well and truly shifted. Airline contracts have changed, so make sure you’re reading the fine print with regards to items such as:
- Spend thresholds
- NDC (new distribution channel) requirements
- Non-performance penalties
- Change requests.
In the hotel space, FCM Consulting has seen a 45% increase in the use of Non-Last Room Availability (NRLA rates). With demand for accommodation on the up and hotel occupancy in most countries (except Mainland China) sitting at or above 80%, it’s important to keep an eye on your contracts. Otherwise, you may end up paying rates up to $30 more, depending on the hotel and city.
Hotel rates stabilise
Domestic hotel rates in Australia in the final quarter of 2022 were a mixed bag. Rates reduced on average by about -3% on Q3, with reductions in Brisbane, Sydney and Geraldton. Places like Kalgoorlie had an average rate hike of +10% and Auckland was up a staggering +24% on Q3.
Just like the construction industry, the travel sector continues to grapple with labour shortages. This was the biggest challenge for hotels in 2022, which is set to continue into 2023.
Attracting, retaining and training staff is paramount to any successful hotel. With operating costs making up 50% of labour costs, increasing salaries to attract talent is only an option if such costs can be passed on to the end consumer. But without adequate staffing, the guest experience is compromised.
The traveller experience gets a boost
Now the global travel industry is getting things back in order and up and running, suppliers are finally coming up for air. Air, hotel and car hire operators will be breathing new life into the traveller experience in 2023 - looking at ways to make travel options more personal and tailored. The ‘traveller-first’ mentality will filtrate through the corporate travel experience from new distribution channel (NDC) content from airlines to more personalised hotel experiences driven by smart technology and traveller-centric travel programs designed to keep travellers happy, healthy and comfortable.