Fiji has been the number one destination for Kiwis during the past year. Photo / Supplied
Fiji has been the number one destination for Kiwis during the past year. Photo / Supplied
Flight Centre is forecasting airfares to ease next year as more capacity comes into the market.
The travel firm’s New Zealand boss, David Coombes, believes prices will start to fall around the middle of the year.
“We will finally see air prices lower. We expect other carriers will enter backinto the NZ market by June-July 2023.”
The return of Chinese mainland carriers in big numbers - which pre-Covid had about 10 per cent of the long-haul market - will have a big impact on competition.
Although the reopening of China’s borders remains uncertain, the rapid moves to ease internal Covid-19 restrictions there recently signals that international travel could resume. China was New Zealand’s second-biggest source of tourists before the pandemic, and inbound air capacity means more flights out of this country and lower prices.
During a spell of intense discounting economy airfares to Europe dropped below $1000 on China Southern Airlines.
Hong Kong is also opening up and Cathay Pacific is looking to rebuild its international network.
Before the pandemic devastated its schedule, Cathay Pacific was one of the biggest overseas long-haul carriers operating here, flying into Auckland up to twice a day (plus one flight with partner Air New Zealand) and into Christchurch up to four times a week during summer.
Coombes said travel will continue to be highly valued by Kiwis, even in the face of inflationary pressures.
“Travel is so integral to Kiwis that it is not considered a discretionary item.”
Flight Centre NZ managing director David Coombes. Photo / Dean Purcell
But the rate of growth in New Zealanders taking trips will slow, allowing for resourcing to start catching up with demand across the travel and tourism ecosystem.
Staff were also being added, relieving the strain on airlines and airports where worker shortages have led to flight cancellations and delays during the last year as travel boomed.
Coombes said business travel will also recover.
“Virtual meetings are no substitute for in-person connection. Kiwi businesses will continue to flock back to the world as travel becomes safer, selling their wares, and doing their part to shore up New Zealand’s economy.”
Flight Centre in the latest financial year trimmed losses to $193 million and operating profit returned in the second half of the year as the demand for travel returned.
“This year has been the comeback for international travel for New Zealand,” said Flight Centre NZ’s general manager of leisure, Heidi Walker.
“We started 2022 still in the clutches of overseas travel restrictions and a very different business. It’s amazing to see how far we’ve come, with the pent-up demand from Kiwis far exceeding our expectations.”
The Top Destinations
Nadi
London
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Melbourne
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During the past year, the average trip length booked through the firm was 25 days, more than half were international, solo travellers were the primary customer, followed by couples, then families and lastly small groups.
While 90 per cent of flight bookings were in economy, 23 per cent of travellers were booked into 5-star accommodation.
A third of bookings were on Air New Zealand.
Norwegian Prima was launched this year. Cruise bookings have surged. Photo / Supplied
Cruise bookings around the world have surged and Flight Centre’s most expensive cruise holiday topped $88,500.
The average age of a cruise traveller during the past year was 62 years old. Most people booked a balcony room with 36 per cent, followed by 15 per cent in an interior room and a “very respectable” 11 per cent booking penthouses or suites.
