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 have the confidence to manage all elements of holiday packages. The wholesalers that do exist operate nation-wide, with many owned by the large retail chains.
• Major wholesalers selling Australia currently include Infinity Holidays (part of Flight Centre), Go Holidays (part of Helloworld), 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 and has its own wholesale operation with 65 high-street retail outlets and a number of brokers buy through. 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.
• A good majority of these advisors are made up from the large retail chains of House of Travel (66 retail stores), Flight Centre Group (45 stores), Helloworld (33 stores) and YOU Travel (23 stores).
  
• Outside of the major retailers, sits an extensive network of broker groups and independent agents. The number of brokers and homeworkers 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. 
• There are over 1200 qualified Aussie Specialist agents in New Zealand, growing month-on-month as the industry returns to full-strength. This includes 23 ‘Premier Aussie Specialists’, recognised with Premier status for their extensive knowledge of the destination, commitment to selling Australia and ongoing learning via the Aussie Specialist Program.

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 once they’ve arrived at their destination.

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 changed1200 at its lowest point. However, recovery is well underway and TAANZ (Travel Agent’s Association of New Zealand) reported that by October 2023 the estimated number of active agents was back up to over 2000.
  
• The total trip spend on leisure travel to Australia by Kiwis was AUD$2.4 billion in 2023, growing by 96% compared to 2022, while the average trip spend was AUD$1,652, growing by 8% compared to 2022 (Source: IVS 2023).
  
• 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 less 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 to Australia is less and advisors can receive a same-day response.

Planning and purchasing travel

• Kiwis who book with the trade will often research 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 New Zealand is fragmented and varied. Consumer confidence for travel to Australia is high and booking lead times are relatively short compared to other international markets, generally sitting at between 6-12 weeks.
  
• 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 New Zealand 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 in this market 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 which 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.