Travel Wars Heat Up

Travel Wars Heat Up

Competition in the already heated travel industry is reaching a new level of intensity, with destinations previously thought of as niche now competing with old favourites such as Australia and Fiji.

As a region, Asia has overtaken the Pacific in visitor numbers for the first time, with more than 234,500 people travelling to Asia in the year ended 31 December 2006, compared with 233,400 travelling to the Pacific.

This is also at a time when numbers to Australia are starting to level off.

Flight Centre general manager Rick Hamilton said the increased competition was creating a price war, clearly evident in the deals at the retailer’s annual Travel Expos, which are taking place around the country this month.

“The more airlines on routes, the cheaper the airfares, and the more destinations people feel comfortable with, the cheaper travelling costs are overall.

“It’s great to see New Zealanders seeking more variety in their travel, and therefore creating competition for their travelling dollar.”

The price of package deals to Thailand were in many cases less than the same number of nights and standard of accommodation in Australia or the Pacific.

Mr Hamilton said the company’s expo, in Auckland this weekend, was a good gauge of travel trends, and the various deals were pointing to a more competitive climate than ever before.

“While the price war in the Pacific has been well documented, we are seeing countries such as Thailand and Malaysia competing directly in price, as higher airfare costs are offset by very inexpensive accommodation and transport.”

The increasing presence of international tourism boards in New Zealand and an increase in long haul carriers flying to and from New Zealand all point to an overall push to secure the growing New Zealand travel dollar.

Flight Centre has predicted 2007 will mark the year New Zealanders take more than two million international trips for the first time, up on around 1.87 million in 2006.

ENDS

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