Kiwis still enjoying discounted flights

+ 9.2%

North America

+ 5.3%

South America

+ 5.1%

Australia

+ 4.9%

Japan & Korea

- 1.0%

Middle East

- 7.5%

Kiwis still taking advantage of discounted international flights

NZ Study shows 2010 flight prices on par with last year’s price war

Auckland, 16 August 2010 – Despite last year’s international airfare war and significant pricing discounts, which many in the travel industry believed couldn’t be sustained, a new study has shown that New Zealanders are paying only slightly more for international flights than they were one year ago. The study conducted by Expedia.co.nz, operated by the world’s largest online travel company Expedia, Inc, has revealed Kiwis are taking advantage of low prices and a high NZ dollar to travel to Europe, North America and the Middle East – on much shorter notice than they were last year.

Specific New Zealand data shows Kiwis are paying approximately six per cent more for flights now than they were this time in 2009, when New Zealanders benefitted from a significant air war on flights to Europe and North America. The average ticket price to Europe is up nine per cent while North America is up five per cent; however, prices are still comparatively low and the year-over-year gains of the New Zealand dollar has kept these destinations top-of-mind for Kiwi travellers.

Chris Hann, Retail Manager for Expedia Australia and New Zealand, said an increasing number of New Zealanders were booking long-haul flights within one or two months of departure, where historically international bookings were made up to six months in advance.

“More and more New Zealanders are taking advantage of cheap fares as soon as they come online, particularly for destinations like Los Angeles, San Francisco and London. While there hasn’t been an air war this year, the average ticket prices on many popular routes are almost as low this year as they were in 2009, when industry sentiment suggested prices would never be that low again,” Mr Hann said.

Mr Hann also noted a correlation with the healthy increase in the New Zealand dollar, which like the airfares experienced near record lows in the first half of 2009. 

“The New Zealand dollar is up about 10 per cent against the US dollar and over 20 per cent against the Euro in 2010 compared with the comparable periods in 2009. So even though ticket prices have increased to Europe, the healthy gains on the Euro make this arguably an even better time to visit many European destinations,” Mr Hann said.

Looking at air ticket data from the second quarter 2010 compared to the same period in 2009, average ticket prices from New Zealand to Europe are up around nine per cent, with North America and South America also up. Airfares to Australia are up as well, though ticket prices to Middle East destinations such as Qatar, Abu Dhabi and Dubai have decreased significantly. Kiwis are paying significantly less for flights to the Middle East this year than they were last year, and are also paying slightly less for flights to popular Asian destinations such as Seoul and Tokyo.

Destination

Average Ticket Increase / Decrease from same period 2009

Europe

+ 9.2%

North America

+ 5.3%

South America

+ 5.1%

Australia

+ 4.9%

Japan & Korea

- 1.0%

Middle East

- 7.5%

Overall

+ 6.0%

* All data from actual bookings on Expedia.co.nz. Data collected from 20 June to 18 July 2010, compared to same period in 2009

ENDS

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