In 2023, Flight Centre New Zealand experienced a resurgence in travel, marking the first full year of open borders since 2019. Heidi Walker, Flight Centre NZ general manager says the year saw a return to typical seasonal travel trends despite economic constraints. Airline capacity reached approximately 90% of pre-Covid levels, offering Kiwis more travel options.
While prices hadn’t returned to their ‘golden era’ levels, competitive deals began appearing, with expectations of further price reductions into 2024.
A notable trend in 2023 was the high percentage of solo travellers, making up 30% of Flight Centre’s bookings. The average age of these travellers was 53, with London being the top destination, followed by Brisbane, Sydney, Melbourne, and Manila. For couples, who made up 27% of bookings with an average age of 55, romantic destinations like Fiji and Rarotonga were popular, though many also ventured to Europe, with London being a frequent first stop.
Family travel, made up 9% of bookings, mostly involved holiday packages to family-friendly destinations like Fiji, the South Pacific, Gold Coast, and Rarotonga. The average age for this group was 43. Small group travel, accounted for 7% of bookings with an average age of 53, and saw more diverse destination choices, from Fiji and Australia to the United Kingdom.
There was also a obvious increase in premium travel, with more customers opting for premium economy, business, and first-class flights in 2023 compared to the previous year. The need for travel insurance became more apparent, with a rise in insurance purchases from 25% in 2022 to over 30% in 2023. Add-ons like Flight Centre’s Captain’s Pack also gained popularity.
Interesting anecdotes from 2023 include a solo traveller spending 37 nights at a hotel in Ibiza, a customer setting a world record in Bora Bora, and a rugby enthusiast spending over $17,000 (NZD) on last-minute first-class tickets to see the All Blacks play.
Looking ahead to 2024, Flight Centre predicts normalised prices, the popularity of cruises, and significant influence of the exchange rate on travel decisions. Big sporting events are expected to draw Kiwis to Europe. Flight Centre also anticipates airline capacity nearing 100% of pre-Covid levels, leading to more travel options and competitive pricing. Despite the rise of online bookings, 70% of Flight Centre’s customers still prefer in-person bookings, valuing the personal touch and experience offered by travel agents.
