Monday, April 6, 2009

Accommodation and travel spending dips

The time lag of 6-weeks for the Commercial Accommodation Survey can be frustrating when trying to establish what is happening in the accommodation market place. Without hard data, we suspect that February and March '09 will prove to be fairly unspectacular for the motel industry.

The spending analysis from Paymark for March '09 would indicate that Kiwis are not planning ahead with travel plans. This is not all bad news for the motel industry. Overseas travel often requires upfront payment, unlike domestic travel where most people pay as they go. For the motel industry where over 70% of guest nights are domestic, Kiwis that holiday overseas is: BAD. Kiwis that holiday at home: GOOD.

We get the feeling that the domestic leisure market will be using Easter this April to burn plenty of carbon to enjoy the freedom of the great Kiwi road trip - we say bring it on!

We anticipate that many Kiwis will be breaking the overseas holiday cycle to rediscover their own country again. Motels will be hosting many of these travelers and hopefully Easter will be a springboard for several holidays taken by the average Kiwi in their homeland this year.

6 April 2009
Article: Businesswire

Spending on accommodation and travel fell in March, a month when New Zealanders typically book winter holidays, suggesting people are deferring plans in the face of the ongoing recession.

Travel spending fell 14% last month, while spending on accommodation declined 8%, based on electronic transaction processed by Paymark. Total Paymark transactions rose 1.5% from a year earlier, though March 2008 included Easter and adjusting for that, spending fell.

“What we have seen in the last month is that travel-related sales are down 14% which suggests New Zealanders are foregoing their holiday plans or travelling locally,” said Simon Tong, Paymark chief executive.

Source: Click HERE

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