Working in Market - New Zealand

Wholesalers

Commission Level: 20% - 30%

• Due to New Zealand’s proximity to Australia, the wholesale network is smaller here, compared to other international markets. Many kiwi travel agents have a history of booking direct and the confidence to manage all elements of holiday packages. The wholesalers that do exist are far reaching with many owned by the retail giants. 
• Major wholesalers selling Australia currently include Infinity Holidays (part of Flight Centre), Go Holidays (part of Helloworld) and Lifestyle Holidays (part of First Travel Group) and Expedia’s TAAP program, exclusive to retail travel agents. Bed banks such as Hotel Beds also play a key role for some travel agents.
• House of Travel is a large retail travel brand which acts as its own wholesaler for 65 high-street retail outlets. These outlets are franchised, meaning they are branded as House of Travel but are individually owned and operated. 

Retail Agents

Commission Level: 10% - 15%

• Retail agencies are adapting to change and continue to restructure their businesses by moving away from low commission products to more profitable products and services. The structure of the retail industry is also changing as single location agencies continue to consolidate into larger chains and consortia groups.
• There are approximately 2000 travel advisors currently operating in the New Zealand. The pre-COVID estimation was closer to 5000.  
• A good majority of these advisors are made up from the large retail chains of House of Travel (65 retail stores), Flight Centre Group (42 stores), Helloworld (32 stores) and YOU Travel (24 stores).
• Outside of the major retailers, sits an extensive network of broker groups and independent agents. The number of brokers and homeworkers in particular has been on the rise since the global pandemic forced many traditional high-street travel agencies to close.

Aussie Specialists

• The Aussie Specialist Program (ASP) is the primary platform for Tourism Australia to train and develop front line travel sellers to best sell Australia. 
• As at April 2023, there are 520 qualified Aussie Specialist agents in New Zealand, growing month-on-month as the industry returns to full-strength. This includes Including with 17 ‘Premier Aussie Specialists’, recognised with Premier status due to their ongoing engagement with the Aussie Specialist Program and commitment to selling Australia.

Online

• Online travel agents or ‘OTAs’ such as Expedia, Webjet and Booking.com remain a popular way for Kiwis to book travel to Australia, due to New Zealand’s close proximity and familiarity with Australia. Distribution of hotels, resorts, lodges, attractions/tours, and car rental through major OTAs to Australia has increased as they continue to expand their product offerings. 
• Specialist OTAs such as GoSee Travel (Cars and Campervans) and Book Me (tours and attractions) continue to grow and add value to those consumers who initially booked air and land components then research what to do when they arrive.

Inbound Tour Operators

Commission Level: up to 35%

• Traditionally, the amount of business New Zealand travel advisors put through ITOs has been relatively small.  There are many factors for this, including advisors’ experience and familiarity in selling Australia, kiwi confidence while travelling in Aus and a small time difference.  Much like with the use of wholesalers, ITOs are a more appealing booking channel for far-reaching destinations and off-the-beaten track experiences. E.g. an agent is much more likely to approach an ITO for Western Australia tailored journey, than a resort stay on the Gold Coast.
• Some inbounders for Australia have offices in New Zealand and are active with retail travel agents and brokers such as ANZCRO. Where as some inbounders are based in New Zealand, operating as an inbounder for both NZ and Australia, selling to clients from around the globe with minimal focus on the kiwi market.

Trends

Distribution

• The travel trade and distribution system in New Zealand is small compared to other international markets however still accounts for large numbers of travellers to Australia due to NZ’s strong ties and close proximity.
• Due to the global pandemic, the distribution system has changed drastically. Pre-COVID there were approx. 5000 travel agents in New Zealand, reducing to around 1500 at it’s lowest point. However, recovery is well underway and TAANZ (Travel Agent’s Association of New Zealand) reported that by October 2022 the estimated number of active agents was back up to 1800.
• Despite the increase of online distribution, retail agencies are still an integral distributor of Australian travel for Kiwis, particularly for intricate itineraries to parts of the country les familiar to Kiwis. Travellers aged 55+ are also increasingly looking to ensure their travel spend is managed by a trusted travel advisor.
• With tourism operators throughout Australia (and globally) becoming more digitally savvy, there is now greater ability for travel advisors to book direct. Particularly in New Zealand, where the time-difference between Australia is less, meaning a reduced need to use a wholesalers or inbounders located in Australia.

Planning and purchasing travel

• Kiwis who often research the majority the elements of their Australian holiday online and then work with a travel agent for planning and booking.
• For Kiwis, Australia is as close to an “always on” destination as it gets due to the strong ties and ease of access. Certainly for the most popular destinations like the Gold Coast, Sydney and Melbourne.
• Like the market itself, the purchase cycle in the NZ is fragmented and varies. Consumer confidence for travel to Australia is high. Booking lead times are relatively short compared to other international markets, sitting at between 6-12 weeks when regular air capacity is in place.  
• Booking trends have been difficult to identify since the pandemic but traditionally, high booking periods are January - February when retail agencies and airlines have their new year sales with regular spikes around August – October.

Special interest

• There is a segment of the NZ leisure market, particularly amongst those over 45+ years of age, looking for premium travel and special interest experiences. Retail consortia groups such as Virtuoso are growing here and have a number of preferred wholesale and inbound tourism partners specialising in custom, high end journeys in Australia.
• The Signature Experiences of Australia program packages and promotes Australia’s outstanding tourism experiences within a variety of niche areas and special interest categories. Signature Experiences of Australia currently comprises wineries, luxury lodges, golf courses, walks, Indigenous experiences, fishing adventures and wildlife. In each case Tourism Australia has partnered with select industry collectives that have a compelling marketing proposition and share a common goal and vision. An increasing number of wholesalers in market are targeting travellers looking for authentic and uniquely Australian experiences in these spaces. While there are many more special interest and premium products outside of the Signature Experiences collectives, we promote the program as a ‘good starting point’ when searching for experiences.

Planning a visit to market

Top tips for sales calls

• Travel sellers within New Zealand are very approachable and value in-person connection. Particularly in regional areas where it’s more of an effort to travel to.
• The market values strong relationships and loyalty, which takes time to build.
• New Zealand enjoys a friendly rivalry with Australia and the similar laid-back nature of Kiwis matches that of Australians. Don’t be scared to play off the rivalry and have a laugh.
• To combat any over-familiarity Kiwis have with Australia, it’s always recommended to highlight new and unique experiences.
• For more information on sales calls, key market centres to visit and general planning of a visit to market, please see Tourism Australia’s Tourism Export Toolkit.

Key Distribution Partners

Tourism Australia is a partnership marketing organisation and works closely with airlines and travel companies on cooperative marketing to drive conversion in all priority markets.

Key Distribution Partners include travel wholesaler, retail and online travel agencies committed to increasing total booking value of visitors to Australia, to training their frontline sales team through the Aussie Specialist Program and ongoing development of Australian experiences within their product range.

Below are some Key Distribution Partners that Tourism Australia are working closely with from New Zealand.

• House of Travel
• Helloworld
  
• Flight Centre
• Travel Associates
• YOU Travel

Where to find more information

Tourism Australia’s activities in New Zealand are managed from a mix of the Sydney office and some in-market team members based in Auckland.

Australian State and Territory Tourism Organisations (STOs) with in-market teams in NZ include: Destination NSW, South Australian Tourism Commission, Tourism and Events Queensland, and Tourism Western Australia. Though other STOs are regularly active with marketing activities in market, managed from Australia.

Also see:

• An overview on the travel distribution system
• A quick reference on key booking and travel periods for markets
• NZ Country Brief published by the Department of Foreign Affairs and Trade at: www.dfat.gov.au/geo/new-zealand
• For additional statistical reports refer to the ABS and TRA websites, www.abs.gov.au and www.tra.gov.au