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House of Travel on Air NZ Price Rise

House of Travel on Air NZ Price Rise

The following is a statement from Brent Thomas - Director of Retail for House of Travel regarding the announcement of Air New Zealand to increase their fuel costs and the decision by them to include fuel costs in their ticket price.

"Today's announcement that Air New Zealand will be increasing their domestic and international airfares in May as a result of higher fuel prices is not unexpected given the recent devaluation of the New Zealand dollar and the continued increase in international oil prices. The reality is that prices for international travel from New Zealand to many destinations are more competitive now than they have ever been and that a 10% increase to fares will have little impact on a customer's decision whether to travel or not. House of Travel's sales are currently at an all time high and we do not envisage that demand will drop.

It is a shame that the increase has been announced at the same time that Air New Zealand also announced that they will include the fuel and insurance costs in their ticket prices, as this is a very positive move and one we know will attract favourable comments from our customers. Having what has been traditionally known as a "fuel surcharge" included allows for clarity and less confusion which is what customers have been asking for.

The reality is customers have always perceived the fuel surcharge as a nuisance and an ugly surprise once they have decided to book flights. What we need now is more airlines to join Air New Zealand, Freedom Air, Pacific Blue and Jet Star, which will allow customers the ability to compare apples with apples.

Of course the next step, recognising it is complicated for long-haul flights, is to have airport taxes and government taxes included. That way customers will know outright exactly what it costs to fly to a particular destination."

ENDS

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