NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Economy

Kiwis flock to fly on strong dollar

Morgan Tait
By Morgan Tait
Reporter·NZ Herald·
26 Jan, 2014 04:30 PM6 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Naomi Somervile and Adam Booth are keen travellers and say their buying power has grown. Photo / Richard Robinson

Naomi Somervile and Adam Booth are keen travellers and say their buying power has grown. Photo / Richard Robinson

Cost of international flights and buying power overseas have travelling New Zealanders buying up a storm.

Kiwis are riding the strong New Zealand dollar overseas and using their newfound purchasing power to enjoy more sights and experiences while they are there.

The country's economic growth, tipped to outpace most other developed nations this year, is good news for Kiwis travelling abroad and many New Zealanders are already taking advantage of strong currency conversion rates.

Travel industry experts say they are taking more bookings and inquiries and watching New Zealanders get more "bang for their buck".

A Herald comparison of the prices of a range of consumer purchases overseas showed buying a latte from Cafe Munich in Germany costs about $5.70 today, but when converted at 2009's exchange rate the same drink would cost $8.40.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

We compared Wednesday's conversion rates - with the New Zealand dollar at US83c, 61c against the euro and 50p against the pound - with the same date in 2009.

Going out for a plate of international restaurant chain Wagamama's Teriyaki Beef Soba noodle dish would cost $26.07 at today's prices, but $38.28 at 2009's exchange rate.

Taking a ride on a double-decker bus in London costs $4.80 now, but $6.24 at 2009 rates.

Someone wanting the latest model iPad would have to pay $909 at electronics giant FNAC in Paris at 2009 conversions, but just $620 now.

Advertisement
Advertise with NZME.

Flight Centre general manager Simon Mckearney said business and customer inquiries were up 20 per cent on the same time last year.

"It's brought back into the marketplace more travellers," he said. "Year on year our sales are significantly up and ... it's not just us, all our competitors are doing the same.

"Travel is cheaper with the Aussie and US dollar both in great shape [for those with Kiwi dollars], so people know they are going to get a bigger bang for their buck once they get overseas."

He expected interest to rise in February and throughout the year.

Discover more

Banking and finance

Dollar rises to near 8-week high

13 Jan 08:20 PM
Business

Dollar looks weak as inflation, housing figures loom

20 Jan 01:10 AM
Construction

NZ shares mixed as Hallenstein recovers, Tower goes ex-div

20 Jan 05:12 AM
Banking and finance

Dollar holds gains as inflation heightens rate hike talk

21 Jan 08:01 PM

Tour companies Contiki and Trafalgar, which take groups around Asia, the UK, Europe and the US, were experiencing a 15 per cent increase compared to the same time last year.

Contiki general manager Tony Laskey said more young people were travelling, especially to Australia, Asia and the Americas where the Kiwi dollar performed best.

"Absolutely more young people are travelling because we've got a strong dollar," he said. "Our Europe inquiries and bookings are up, but when you look at somewhere like the States or Australia, our bookings are up even more."

Trafalgar general manager Scott Cleaver said the value of the Kiwi dollar was changing what New Zealanders chose to do on their travels.

"Everyone sees the UK as a destination now that is more affordable. You used to buy a cup of coffee in London that was the same in pounds as it was in dollars, so it was always this horrendously expensive exercise, but people don't view it that way now.

"Pricing, particularly outside of London, seems to have dropped a little bit and obviously with the strength of the dollar it means for the first time in a long time we feel we can get some value there."

Advertisement
Advertise with NZME.

Mr Laskey said New Zealanders were making the most of their purchasing power.

"Our tours in the States, when we go to factory outlets and things ... our Kiwi clients are shopping up a storm - three pairs of jeans, five pairs of running shoes, it's incredible how much they are spending on shopping and other activities because our dollar is so strong."

Mr Cleaver agreed. "It gives a confidence. It's more a feeling that we can go and do more and enjoy it and feel that our money goes further."

Mr Laskey said it was hard to compare Contiki's price changes with previous years, as packages now included more.

"It used to be just transport, accommodation, your breakfast and half your evening meals. Now there's a whole lot of other stuff included.

"In the States we include things like a catamaran cruise on San Francisco Bay, a Hummer ride down the strip in Vegas and all these things we have been able to add in because of the strength of the currency. Clients get a lot more."

Advertisement
Advertise with NZME.

Air travel costs down

The price of international flights is getting cheaper, economists say.

In the year ending November, nearly 2.2 million short-term overseas trips were taken by Kiwis compared to 1.9 million in 2009, Statistics New Zealand data shows.

In the same period, the price of flights dropped considerably, said New Zealand Institute of Economic Research principal economist Shamubeel Eaqub.

A Herald comparison of Flight Centre pricing schedules from previous years showed savings of hundreds of dollars.

Travelling to Paris return from Auckland would have cost $2125 when adjusted for inflation in 2013 dollars. In 2013, the same trip would have cost just $1785 - $340 less. Getting to London and back from Auckland was now $239 cheaper.

Advertisement
Advertise with NZME.

Mr Eaqub said there were a range of factors at work making travel cheaper for jet-setting Kiwis.

"In real terms and relative to incomes, [prices] have been falling so international airfares have become more affordable," he said.

Statistics New Zealand's consumer price index showed the price of international air travel in the December 2009 quarter had increased 19 per cent; in the same quarter of 2013 prices had increased 9.2 per cent.

Mr Eaqub said businesses were also competing to bring back customers who disappeared during the recession.

Big savings on couple's overseas trips

Naomi Somerville and Adam Booth are paying $1000 less for flights to Ireland than they paid for the same trip a year ago.

Advertisement
Advertise with NZME.

The Auckland couple are heading for a three-week trip to the Emerald Isle for a wedding in March, and were surprised to find they were saving so much.

Flights that previously cost them $2300 each were now just $1700, said Ms Somerville.

"We were really lucky, I had my eyes on the internet every day and was checking," she said.

"It was a bit of a fluke really, we didn't know that it was going to cost this much," said Mr Booth. "We travelled over there for Christmas in 2012 and it could have been that time of year playing a part but basically we are saving a lot."

The couple, both in their 30s, said they had noticed their purchasing power increase in foreign countries in recent years.

"The money difference goes a lot further over in Ireland and I have found things are a lot cheaper over there in general which helps," said Ms Somerville.

Advertisement
Advertise with NZME.

Mr Booth noticed the biggest difference while visiting Bali last year, compared to a 2012 jaunt to Thailand.

"We got a good deal for Bali as well, but we had been to Thailand a year prior and after comparing the prices ... it was way cheaper - clothing, food, everything."

Save

    Share this article

Latest from Economy

Premium
Property

New, never-lived-in Auckland apartment project up for mortgagee sale

09 Jun 04:00 AM
Interest rates

Another major bank cuts mortgage and deposit rates in NZ

08 Jun 11:21 PM
Premium
Energy

NZ's power system well-placed for winter - analyst

08 Jun 11:00 PM

Why Cambridge is the new home of future-focused design

sponsored
Advertisement
Advertise with NZME.

Latest from Economy

Premium
New, never-lived-in Auckland apartment project up for mortgagee sale

New, never-lived-in Auckland apartment project up for mortgagee sale

09 Jun 04:00 AM

WFT Finance brought in a subcontractor to finish the apartments before calling Colliers.

Another major bank cuts mortgage and deposit rates in NZ

Another major bank cuts mortgage and deposit rates in NZ

08 Jun 11:21 PM
Premium
NZ's power system well-placed for winter - analyst

NZ's power system well-placed for winter - analyst

08 Jun 11:00 PM
Trump, tariffs and world turmoil

Trump, tariffs and world turmoil

Clean water fuelling Pacific futures
sponsored

Clean water fuelling Pacific futures

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP