Tasman into the black for Air NZ
Air New Zealand’s trans Tasman collaboration with Virgin Australia is “where we want it to be”, the Kiwi carrier’s second in command has said, although challenges remain on the route.
Deputy chief executive Norm Thompson claimed its Tasman market share ex-Australia has climbed with high load factors helping push the route into the black.
But the strong dollar is continuing to impact Tasman business with Australians “in love” with the US dollar exchange rate, he told Travel Today.
“The alliance is working particularly well, we work well together as a joint venture in both marketing and product offering,” Thompson said. “We have seen a nice lift in business, ex-Australia particularly, and where the market has grown the alliance has pretty much taken that growth so we are happy with the way it is working.”
Market share from Australia has risen “a couple of percentage points” to around the mid 30s, he said.
“We think we’ve pretty much got the alliance where we want it to be, certainly the customer is now very familiar with our Seats to Suit product and we’ve both worked hard to achieve a greater commonality of product,” Thompson said. “We think we have the product right and we think we have the frequency right but we can’t afford to rest on our laurels.”
Around 40% of bookings have been for Air NZ’s seat only with carry on bag option, far higher than the high 20s expected, he explained.
“The price point has been a factor in growing the market,” Thompson said. “Previously we had loads in the 70s but are now consistently in the 80s which is where it needs to be if you are operating at the sorts of yields across the Tasman. If we haven’t got load factors in the 80s we’ll look at ourselves and wonder what the hell happened.”
Critically the Tasman is now poised to make money – a far cry from the days when it was “haemorrhaging cash”, as one senior executive told Travel Today.
“Last year it was heading towards break even and we’re a little better than that now. It’s coming out on the right side of the ledger although it’s not yet where we want it to be,” Thompson said.
“The real challenge in the Australian market is competing against the US dollar,” he continued. “Australians seem to be in love with the attractiveness of the US dollar and let’s be fair, it is good value. So I think we’ve probably lost some potential market because of that. We’ve worked hard to keep our numbers up and we have to ensure we position New Zealand as a value for money destination.”
Thompson said sales for the alliance’s newest route, Auckland to the Sunshine Coast which starts on July 1, had been strong but he played down any further route developments.
Latest News
CATO commemorates 25 years with anniversary dinner
The Council of Australian Tour Operators (CATO) has announced its 25th Anniversary Dinner that will not only commemorate CATO’s historic milestones but will also provide an invaluable opportunity for members to network and reflect on numerous significant achievements. This prestigious event for members will be held at the Sydney Hilton Hotel on Thursday, 20 June, […]
Fiji Tourism Exchange 2024 opens with a vibrant ceremony at Sofitel Fiji Resort, Denarau
The two-day Fiji Tourism Exchange 2024, opened with a vibrant ceremony at the Sofitel Fiji Resort and Spa in Denarau. A pinnacle event in the South Pacific tourism calendar, the event brings together industry stakeholders from across the globe to delve into Fiji’s tourism offerings and cultivate long-lasting business relationships. Acting Prime Minister and Minister […]
Raes on Wategos celebrates 30th birthday and guests get the presents
World famous luxury boutique hotel Raes on Wategos, in Byron Bay, has launched its 30th birthday celebrations with a Raes Indulgent Escape package. Available for all stays of two nights or more, from June to August, the curated package offers an invitation to indulge in a shared celebration of Raes 30th birthday, whilst revelling in […]
Seabourn’s two new value-add offers for 2024-25
Luxe cruise line Seabourn is offering two value-added promotions featuring must-have fares and a generous shipboard credit for guests seeking to book their next voyage. The exclusive “A Sail to Remember” Event includes must-have fares on most Seabourn ultra-luxury ocean and expedition voyages in October 2024 and beyond. The “More Moments on Us” Event offers […]
PONANT commercial team expands to meet growing demand in APAC
Luxury exploration cruise line Ponant has announced significant updates to their Asia Pacific commercial team in response to accelerated growth across the region. “These structural enhancements signify Ponant’s dedication to meeting the evolving needs of our valued trade partners in the Asia Pacific region,” general manager sales & marketing, Asia Pacific, Deb Corbett said. “We […]
Gen Z and millennials on track for rise in Europe rail trips, says TruTravels
Despite what you think, Gen Z and Millennials are not 'off the rails', but instead want a fast track to Europe.
$230m joint Novotel & ibis Styles Melbourne Airport hotel prepares to open
Dear all business travellers, you're Melbourne experience just got a whole lot better.
Envoyage premieres Worldwide 2024 in Santiago
There has been a warm reception for 300 attendees at Envoyage's gabfest in Santiago, Chile.
Disney Destinations launches epic Aussie agent incentive
Everyone needs a bit of Disney in their life (apparently) and agents can get their next dose for free here.
IPW 2024: 960,000 Aussies took the trek to the Land of the Free last year
Nearly 6,000 travel industry reps descend on LA. Thankfully for all of their bosses, it's not in Vegas.
Nauru Airlines offers new direct flights from Brisbane to Palau on ‘Paradise Express’
No more island hopping to Palau as Nauru Airlines hits this boundary six.
Etihad Airways boosts connectivity with five interline partnerships
Etihad high fives itself with interline partnerships announcing a handful of new airlines, including Rex.
Discover the enchantment of India – A tale of timeless cities
Whether you're game enough to test out the street food or not, we recon India should be top of your list.
Qantas cops $100m penalty with passengers to get $20m back over cancelled flights
Qantas cops a $100m civil penalty, passengers to get back $20m over cancelled flights to resolve ACCC court battle.
Body found off Sydney Heads suspected to be missing cruiser
Tragic developments onboard Pacific Adventure this morning.
Wendy Wu Tours ‘Wonderlust Sale’ offers the wonders of the world for less
More for less... Great news for all apart from Wendy's wallet.
Booking.com launches AI Trip Planner in Australia and New Zealand
Booking.com launches new AI feature in Aus. We're hoping AI never gets the nuance involved with writing these jokes.
Voyages celebrates 40 years at Uluru with two new immersive experiences
No plans for celebrating your 40th this year? Here's a hot tip from us.
SkyDeck: The inflight entertainment you could never have imagined
Forget those external cameras you can live stream while in the air... With SkyDeck you can check it out for yourself.
Second Boeing whistleblower dies of ‘mystery infection’
Joshua Dean died from a fast-growing mystery infection on Tuesday.
Aussie winners of American Airlines ‘Sell Your Way to the USA’ announced
Show me the money! For the winners, Sell Your Way to the USA was worth getting involved in.
ANZCRO celebrates 30th with special edition of iconic New Zealand Book
Choice bro! ANZCRO celebrates its 30th with a special edition of its iconic New Zealand Book. Chur!
Room to move at Cairns Harbourside Hotel with ‘spacious’ new family package
Moody teens can eat two-minute noodles while younger brothers and sisters get to eat free with mum and dad. Win, win!
A&K unveils lavish around the world wildlife adventure in private jet
The kind of holiday that if you need to ask the cost, you probably can't afford it.
Flight Centre and Reforest hit one million trees target early
Nice one Flight Centre, we think you've earned an early Friday knockoff.
New cruise options spearhead stacked APT 2025 program
Just in case you thought you were running out of cruise itineraries, APT's here with a fresh batch.
Travel Weekly announces a new team to helm Australia’s No.1 travel trade title
Some shameless self-promotion from us, but we thought you needed to know who's bringing you the news.
IHG reveals plans for Brisbane’s first Kimpton in 2028
Just another reason to book that trip to Brisvegas. But don't jump the gun, it's not open until 2028.
Cruiseabout’s first store in five years opens in Perth
Perth gets a break from being behind the rest of the country with the addition of the first Cruiseabout store.
ATAS complaints process acknowledges non-economic loss
A High Court case win over 'disappointment and distress' on a cruise gone wrong prompts ATIA complaints change.
Cunard previews new Queen Anne
Yep, this one does exactly what it says on the tin.
Bunnik Tours unveils latest expansion to Iceland
Just as the Icelandic vikings did many years ago, Bunnik is expanding into new territories.
Australia’s first glamping retreat turns 25
25th anniversary gifts usually come in silver. Ours comes in the way of a news story.
Embrace the journey: Traversing the world with the Shokz OpenRun
If you’ve been on the wrong side of a final call in the airport, or missed the stop on rail journey, it might be time to invest in a pair of Shokz OpenRun headphones. Originally marketed as headphones for fitness fanatics, runners or cyclists with a keen to steer clear of a prang with a car, […]
Tourism Western Australia MD Carolyn Turnbull departs
Turnbull hints her new role will see her staying in the tourism and hospitality industry and who can blame her?
DriveAway launches Brit-Euro Blitz campaign
If agents can put the foot down quick enough and get involved, there are some great prizes to be won.