Domestic and international airfares both spiked sharply in Jul, compared with Jun, show the latest figures.
Domestic flight prices were up 20.7%, month-on-month, while international airfares increased 10.9%, says Stats NZ.
It is the largest monthly increase in domestic airfares in a Jul month since Stats NZ started collecting monthly prices for domestic airfares in 2015.
“Because many travellers book flights months before they travel, changes in airfares can reflect a range of market conditions over time,” says Stats NZ spokesperson Nicola Growde.
Domestic fares also soared over the 12 months to July, up 14% while international prices were up 3.5%. At the same time, domestic accommodation prices were up 6.2% month-on-month and up 2% for the year.
International room rates fell 7% for the month but were up 0.6% for the year, shows the data.
. . . TAANZ Response
Travel Agents Association New Zealand chief executive Julie White says Air New Zealand’s consolidation/ reduction on its domestic network and the resulting fare increases appeared to have driven the notable increase in domestic pricing. The national carrier has more than 80% of the domestic market. International fares had been affected by the weaker Kiwi dollar, White says.
In addition, off the back of the Middle East conflict, some fuel “Consumers seeking more confidence when booking travel chose airline carriers through Asia which came at a higher premium and some chose to book flexible tickets in case they needed to change or cancel,” she says.
