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Showing posts with label Travel. Show all posts
Showing posts with label Travel. Show all posts

Sunday, January 20, 2013

Discounted NZ flights to attract tourists

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NZ is fighting a losing battle on most fronts for the simple reason that - its isolated. It is a difficult place to fly to. I dare say a lot of people wanting to come here get on various websites for the airlines and simply give up after realising how difficult it is to fly there, and the cost of direct flights. Invariably people will end up simply going to a closer location, or Australia, since they invariably have to transfer in Australia for NZ anyway. This is a shame because NZ has a lot to offer tourists. In fact, its capacity to offer a greater cultural experience is being undermined by the lack of economic activity that tourism could surely improve. Which makes one ponder the question - is there more the government and industry could be doing?

I ask whether NZ should be aiding travel to the country. Why can't it be as easy as flying to Australia? What does this require? Surely it requires:
1. More flights - more destinations, more timetable flexibility, so that people can actually get here at reasonable times.
2. Cheaper flights - using some type of coupon scheme. The tourist organisations need to find a way to make it targeted.
3. More airlines - the reverse seems to be the case. The cheapest flights to NZ were with Air Brunei (to Auckland) and Air Asia (to Christchurch). Both companies were forced to abandon these routes.

If we recognise the economic boon that tourists are for NZ; might it actually make sense for the NZ government to actually 'subsidise' tourists to stay in NZ, recognising that they are going to be contributing far more. What type of scheme is the question? There are several impediments:
1. Lack of jobs for tourists to stay longer - Clearly cheaper tickets would allow more tourists to come, allow more student tourists to work in the country, and contribute in a way the old retiree immigrant is not doing, i.e. by spending money. Already I see NZ is the first nation to allow Filipinos to work in the country...if they have $6000 to get here. Fair hurdle. But they are not going to get jobs as easily as Chinese, Japanese or Korean speakers since Filipinos English-speaking skills are not useful.
2. Lower cost education - The existing model is to ask foreigners to pay more to study in NZ (or Australia) than the local population. This can only curtail the spending that these students do when they get here. Why you might ask, in an age of discrimination-free politics, are foreign students paying more. I fully expect more Asians to go to the Philippines to learn English in future to avoid this rip-off.
3. High cost flights - It is a hard sell to offer discounted flights. It might particularly make sense for packaged tours where the value of 'domestic spending' per travel is 3x more than the nominal flight cost to offer a significant concession to these people. Old people travelling abroad are accustomed to spending large amounts for their unique experiences.

The challenge of course for the tourist industry is how to share any such burden. Perhaps the incentive might be for travellers to Australia to be offered a $300 hotel coupon to come to NZ. Perhaps not. But this is the type of scheme that might deliver greater economic spending at a time when NZ is educating kids, only to see them leave the country. Admittedly Asian kids are replacing them; but I forecast that in coming years, the flow will go the other way, as people realise that Asia is the place to be. For instance, consider the statistics:
1. Philippines - Population growth of 2% per annum; rise in incomes 8-12% per annum, rate of urbanisation 8% per annum.
2. New Zealand - Population growth - zero, rise in incomes - only among skilled workers, who invariably take more overseas holidays rather than spend it in NZ. Rate of urbanisation is also relatively high because of the lack of opportunity in rural communities...which largely reflects the fact that land is tied up in the hands of 'old money' who live on speculative gains rather than creating value. i.e. They sell their land to retired foreigners and city executives as 'premium lifestyle blocks' to finance their overseas jaunts. A false economy because they never really 'earned' the money.

Of course no one really cares about this if your economy is growing strongly. Which brings us back to the issue of why the Philippines and other emerging markets are increasingly 'relevant' and NZ strategically set adrift, as elites in power fail to see the forest through the trees.

Asian property markets outperforming Japan Foreclosed Guide Philippines Property Guide
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NZ is a difficult and expensive travel destination

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I am a frequent traveller from Asia to NZ, and the following NZ Herald article only universalises the problem for NZ - that it is an expensive place to travel. Whether you are flying there or leaving, its expensive for several reasons:
1. You have to rely on one of the expensive - non-discounting airlines to get there
2. Your alternative is to fly to Sydney, Gold Coast, Melbourne, or other ports before flying on to NZ. The Australian route at least gives you more points of entry - that is Auckland, Wellington, Christchurch or Queenstown.
3. The problem is that the choice of airports is offset by the poor travel times; so its hard to get a good connection. I often find it almost impossible to make good connections to get to or leave NZ. I invariably am left coming into the country at midnight, when there are no buses, having to stay an extra night for accommodation, and of course having to commute all the way to Auckland on slow public transport because domestic transport is so expensive.

This obstacle of course would readily be resolved if:
1. NZ migration laws were on-par with Australia
2. NZ biosecurity was beefed up
3. NZ did not have such a social welfare nightmare

Solve these problems and the dropping of barriers would see cheaper flights and greater inter-regional connections. i.e. You could well expect flights from Newcastle (NSW) to Rotorua (North Is NZ), or Melbourne to Napier (top of South Is NZ). This would of course be lovely for all concerned. Frankly, I think these developments are about 10 years off. This is how long it will take NZ to discover oil, and end its parlous state of economic irrelevance as 'Hobbitston' fame.

Aside from the need to change connections in Eastern Australia to get a good fare to Australia, the same is true flying from Asia. One is invariably forced to fly one of the Asian low-cost airlines to Sydney or the Gold Coast, before transferring to a Jetstar flight to Auckland or Christchurch. You have to pay more with Virgin Blue or Air NZ to fly to Wellington or Queenstown. I was forced to fly from Manila to Kuala Lumpur by Cebu Pacific, and then get a flight from KL to Sydney via Singapore, before transferring to a flight to Auckland with Jetstar. The poor service of Tiger Airlines (we could not reach its call centre after numerous attempts, its offices were non existent in Manila airport) and their website did not allow changes. Our problem was their misleading website - it suggests +15kg - leaving the passenger wondering if they are getting 15kg or 15kg + some nominal amount of luggage. Very annoying. Tiger is of course famous for poor service, which is why this airline is being absorbed by its sister company (under the Singapore Airlines brand) Scoot. Scoot is being well-marketed and is a very sensible operation. I have flown with them twice, and they are even better than Jetstar in service. This is their promotional stage, so that might change in 2013.

So it is clear in the Asian sector that the two main offerings are:
1. Scoot operating out of Singapore - see www.flyscoot.com
2. Jetstar operating out of Auckland, Singapore, Melbourne, Sydney, Perth - see www.jetstar.com

Clearly Jetstar has the stronger choice of destinations. Its service has been sloppy in some areas; however I suspect Scoot will give it reason to change its flight packaging. The discount airlines have really been very inflexible on their travel terms. i.e. For a cost of service charge of $3 for a flight change, they are extorting $50, or even causing travellers to forfeit discount tickets or buy new tickets on the day at premium prices. These tactics are shameful, and mirror the action of the banks in the past. It gets even worse, when in our case, the airline has unilaterally decided that there is no capacity to change a code share flight; or that you cannot change your luggage allowance...which is idiotic and frustrating when the revision arose because of their poor website disclosure. Tiger Airlines does not actually tell you on their website what your carry on baggage allowance is.

Asian property markets outperforming Japan Foreclosed Guide Philippines Property Guide
Profit from mining with Global Mining Investing eBook


Tuesday, November 27, 2012

Had a Hobbit-full of Air NZ?

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NZ is going all-out with its tourist dollar - here is another successful promotion - this time from Air NZ. This one has a 'Hobbit' scheme. At the point of writing, this video had 9.5 million hits on YouTube. Even if NZ'ers account for a third of these hits, that's still a lot of promotion abroad. Nice one! I hope however they will not fall for the mistake of giving their country a single dimension. NZ is a long way to go for a 'diamond' with just a few 'facets'.


NZ Property Guide Philippine Real Estate Guide Japan Foreclosed Guide

Thursday, September 20, 2012

NZ tourist - right strategy - but is NZ ready?

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NZ still needs to do some work if it wants to develop a sustainable tourism industry. This by necessity includes some investment, not in more welfare, but in the infrastructure which supports its export businesses, and that includes:
1. Roads - Here is a story of people dying in a road accident. In fairness to NZ, its plausible that the scenery was so compelling that these tourists took their eye away from the road. And of course there is a price to be paid for laying 3-lane highways everywhere - not just in financial terms, but in terms of the scenic experience itself. This commentary therefore has to be a warning for tourists to take it easy on the roads. i.e. You might think in 'quiet NZ' you are alone on the road, and can pull over anywhere for a photo, or that you can afford to take your focus off the road, but at an inopportune time, a car can appear from around a corner, or a car can seek to overtake you at 110kmph...ambivalent about your 'photo moment'. My greatest concern with NZ roads is that they are a poorly laid legacy of old roadworks. They have not be regraded to offer better contouring; just resurfaced. So they are not well-engineered for remote, single-carriage roads. Incidentally, tourist trails are even worse in terms of signage. NZ is already working on these issues, but it will take time. The Wanganui-National Park highway section is almost finished. Yes, it's a highway. But spare a thought for minor back roads.
2. Racism - I see that NZ Tourism is promoting NZ to Asia. This is fine. The problem is the high level of anti-Asian sentiment in NZ. This is going to be an obstacle, both because of its entrenched presence, and because of recession. Might I note that the country of the moment is Indonesia. How is NZ going to handle a lot of 'towel heads' ('Muslims') coming to NZ? Are they going to welcome them, or persecute them under some notion of payback. This is not to say all NZ'ers are like this. Its a 50/50 split. You get those who will go out of their way to be kind; and then you get the other extreme. These are the people who will undermine the tourism industry. To their credit, the tourism industry appears to have been working with the media industry to downplay this negativity. I've seen a number of examples lately of NZ portraying Asians in a positive light, i.e. A Japanese/NZ couple transforming the fashion market; a Korean NZ'ers who won the junior golf championships.

NZ has a lot to offer...it would be a shame to cause Asians to spurn it as a tourist or immigration destination. The government does seem to have moved in the right direction. The tourist agency has a good strategy. The question is whether NZ is 'with them'. Do NZ'ers appreciate its tourist industries? These are not the easiest times to attract tourists. Most Asians are staying and travelling within Asia. Its a recession and the Australian and NZ currencies are high.

NZ Property Guide Philippine Real Estate Guide Japan Foreclosed Guide

Monday, August 27, 2012

Turnaround in NZ values?

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NZ has had a lot of positive news for foreign immigrants in recent times. This news includes:
1. Korean women junior golf player who won a Canadian contest
2. A Japanese-NZ couple who are winning accolades with their edgy men's and women's fashion in Christchurch. 

Immigrants have had a bad deal in NZ over the years; however there are signs that at least the media is trying to change perceptions; and they have been supported by a number of positive stories. There are of course a great many unpublicised stories; whether its your store owner who sells you Indian food or a Turkish kebab, or the Thai panel beater servicing your car. Not a bum attitude among them as far as I can see. NZ does need to appreciate it that these are the developing world's finest, who have the luxury and courage to travel overseas and set up in a new country. I personally think NZ would be a better place if NZ'ers travelled overseas for a broader perspective. I recommend:
1. Japan - if you can teach English, develop a retail biz
2. Philippines - same
3. Australia - too familiar but there are many opportunities there, and it might make more sense for some activities
Old NZ town, Arrowtown, Otago - Queenstown - has one of the most diverse communities in NZ

It takes time for attitudes to change. It is however good to see the NZ government or media taking measures to change attitudes. After all, Chinese people are changing as well. I recall the Japanese governments taking steps in the 1960s to 'civilise' their people, who had a negative perception in global markets. The Japanese government launched an education campaign to change those perceptions. Today, the Japanese have Hollywood-style romantic notions of love, civility and respect. Whilst they don't convey the deeper significance of those values; its fair to say they have grown whilst Westerners have declined. The same trend can be expected for the Chinese. I've seen news of similar programs in China. No doubt they will prosecute spitting, etc, just as they did in Singapore. Travellers to China will experience even old ladies spitting in the streets. Not the most pleasant of habits in over-populated cities. 

Sunday, March 25, 2012

Returning campervans vs flying

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If you need to get between airports, many of us would probably fly or get an inter-city bus. Another option is to do a campervan return. There are certain cases when this works well:
1. Moving home - If you have more luggage than you'd be taking on a flight, then you can take that with you, i.e. Say because you are moving luggage to a storage facility on your way to the airport.
2. Different departure - Say you live in one majority city or town like Queenstown, but you have an international departure from Christchurch or Auckland.
3. Expensive domestic flights - Say you live in NZ where domestic flights can be just as expensive as your international flights.
4. No bus service - Say you left your bus booking too late, then campervan 'returns' can be a cheap way of getting to the airport. You also have the option of making a slight holiday out of the trip.
5. No car storage - I will be flying from Christchurch airport in June'12 and will probably looking to sell my car at that time. I will probably look at buying a new car when I return rather than keep one in storage for 3 months over winter. In this case, it makes sense to sell my car in Queenstown, a popular entry point, and to return a campervan.

This is of course just another option for those probably with a lot of luggage; or wanting to do some shopping, etc in another city. In most cases, you will probably just get that domestic flight. The trick is to know where to go to get your campervan 'return' and remembering. There is a litany of campervans needing redistribution at Queenstown airport. You drive past them on the way to New World shopping centre. Try Camper Returns.
You can get the vehicles for around $5/day, with a $100-300 fuel allowance depending on the distance and their urgency. There are time constraints, however you have the flexibility to pay extra for extra days.

Monday, October 17, 2011

How rich people waste their money

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Does NZ have the spare cash to throw around? Can't its millionaires find a more practical project to advancing science or achievement.
Take this recent announcement in the NZ Herald. Some Wellington property developer wants to build the fastest vehicle in the world - faster than the one already going 1200kmph, and yet still finding no practical application. Why do we need another vehicle going even faster if we cannot buy a 1200kmph vehicle? The chalenge is not speed; its unlikely efficiency, as I'm quite sure there is a market for any such craft, even if its only a tycoon's play thing.
Winning the World Cup Rugby will likely make NZ'ers feel proud; but will it make a difference to their lives? Was it their achievement? No? Will it give them greater courage to be an achiever? Not really? They should be able to make any achiever a role model, so the All Blacks are likely only inspiration for other rugby players.
I discourage people from funding such a project. Maybe the crew ought to actually pursue greater advancements than a mere speed increase; and besides the 'cashed up' Aussies are already have a year up on us, since they have similar plans. See Australian land speed record.
What would be a real advancement would be a jet-propelled boat that is sized to ride over waves at those types of speeds without actually touching them. I have no idea if it can actually be done; but that would be a practical application because we really have no need for land-based jet craft; unless we are going to stick them in tunnels. This would actually make sense in NZ - given its elongated shape. The problem of course is that it would be a pretty low-capacity and expensive infrastructure to develop because only one craft could use a segment of it at one time, and it would have to be >500km long in order to offer benefits. No, I suspect aviation is the proper place for speed records; not the confines of tunnels, nor the 'perfect land conditions' of some salt lake in Nevada. This is just a waste of money.

Thursday, May 12, 2011

Competition alive and well down under

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According to the senior executives of Jetstar and Air NZ, the recent and 'short lived' offer of $1 and $5 flights to Auckland is a sign of real and effective competition in the aviation industry. That's right, the airlines were offering 600 tickets for just 1 hour the other day, and on just one of their hundred-odd routes, and that constitutes competition.
In fairness, there is going to be some competition in this area, and the reasons are:
1. Displacement of services from Christchurch - The new terminal is complete at Christchurch airport, and I am guessing that the airport authority will be looking to raise airport fees paid by the airlines. This I believe is why Jetstar is trying to lure people to Dunedin airport. This is particularly appealing for all those travellers coming from the South. That's right, you might have to travel as far as 8 hours from the far south because of the limited connections offered from Queenstown and the premium prices you pay for them.
2. New market entrant - Air Asia is a new discount entrant into the market. It will lure passengers, but it is only going to take market share from those flying to Asia; so Jetstar after Pacific Blue's exit is going to retain the lion's share of the Australian market.

Dunedin is a big of a hole. Its a very ugly city, and its layout is messy. But it seems, if you can both chancing 1-hour discounts, and you are lucky enough to hear about one, they are not really competition. Really they are token gestures offered by airlines, and duly reported by the media. Sounds like cheap advertising to me. Yep, there are plenty of airlines offering 'discounted tickets'; the problem however is that there are:
1. So many conditions attached to them they are not worth having, i.e. No meals, no flexibility to change the flight, substantive luggage restrictions, highly pernicious penalties complying with their restrictions.
2. The need to carry the risk of buying a ticket you cannot cancel. I suspect they have made as much on unused tickets as those used.
3. The burden of having to read their 9-page list of conditions; or carrying the risk of not reading them.

Yes, competition in the modern era is an illusion. Its all about perceptions, or 'smoke and mirrors', or 'bait and switch'. There is a law against bait advertising in Australia....this seems to breach it. But of course there are those wonderful inventions - the 'asterisk' (i.e. *). They are magic to the business community. They only need to ensure that they have one on the advertisement, and all conditions are in play....and that makes it not 'bait advertising'.
For sane people like myself, the letter of 'statutory law' denies too much, and that the spirit of the law is in breach. Statutory law offers no prospect of justice so long as:
1. It remains arbitrary - no rational, principled basis, no spirit, just 'letter of the law' loopholing. i.e. The law has no context.
2. Justice is expensive - high legal fees, and the prospect of court appeals

I recall a case of a car rental company being challenged in the court by a customer who was charged enormous legal fees for the privilege of saving $50. Seems like a false economy to me. No one it took 10 fees for the practice to be challenged. In the 'common law' case of bank fees, the banks are being sued in a class action in Australia after 20 years of duping customers.

Monday, April 11, 2011

Discount airlines flying to New Zealand

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There are a number of discount airlines servicing New Zealand. I just found a new one - so I thought I would provide a list of the discount airlines now that I am aware of:
1. China Southern Airlines - See their website. They fly to Sydney, Brisbane, and soon to Auckland (NZ). Looking at their website, its a shocker. A sign that Chinese companies just have no idea about customer service. They are expensive too, but more importantly, it would be a nightmare to compare prices. I'd hate to think about the actual flight expensive. I am having flashbacks of a Garuda flight years ago...when they lost my luggage for 4 days. I went to a conference in Goa (India) in my Bali shorts.
2. Air Asia X Airlines - See website. They are based in Kuala Lumpur, so this will most likely be your transit point. The positive aspects about KL is that its a pretty attractive city, far cheaper than Singapore, just as beautiful, without being as clinical, or broadly as authoritarian...just tight on the social values, so you probably shouldn't feel your GF's legs at the dinner table. They fly to Gold Coast, Perth, Sydney I think, as well as Christchurch (NZ).
4. Jetstar - Jetstar is a Qantas subsidiary, so they fly out of all Australian cities, as well as Auckland and Christchurch. They probably represent the best value, but the service is often dodgy. I've had many issues. i.e. Like telling my family they can't fly through Sydney when they knew we could. They refused to listen until the nth hour. Yes, that's you Page in Christchurch. Problem with Australian immigration as well. They didn't know the rules.
5. Pacific Blue - see website. They fly out of most Australian cities to NZ, Asia, etc. I always find them more pricey than Jetstar. Recently they curtailed their flights inside of NZ, so they have a more limited offering now.

Air NZ is of course a more expensive service provider, and they come highly regarded. Frankly I tend to risk it on Jetstar. The flights are cheap, the planes are great, so I suffer the risk and impertinence of poorly trained staff and web sites with 9-page contracts, and a Filipino call centre which functions inefficiently.

In fact, Jetstar in an alliance with Australian Immigration are causing a lot of international travellers transitting in Australia a lot of grief. They are a real heartbreaker because people fly through Australia, and certain travellers from certain countries are not aware that their country is not covered by a certain convention. Rather than place them on a flight which would allow them to transfer in Australia, they are obliged to wait until the NZ airport immigration counter opens to get a temporary visa to stay within the confines of Australia's airports for less than 8 hours. How accommodating is my government? Fascist idiots to be sure! That rule pertains to people with checked in baggage. Don't ask me why. We were wrongly affected by this rule. On another trip we saw other people affected. It is government ruining people's lives. Some of these people don't have the money to stay in a hotel until the airline can rebook them because immigration officers work normal hours. :(
Its a problem for NZ too because its the Australian government ruining the lives of people in NZ, so the problem reflects on NZ. And guess what - Jetstar makes money from the process. These people have to rebook their flights, and Jetstar charges them a rebooking fee. They might even have to get a more expensive flight. We were different - we actually complied with the rule - its just that the Australian Immigration officer who responds to Jetstar inquiries at 6AM did not know the rules. Jetstar - not helpful - despite my partner's knowledge of the facts. We went on the website to prove it to them. Fortunately for us we had laptops. We saw this happen again. That is too frequent.

NZ Property Guide Philippine Real Estate Guide Japan Foreclosed Guide

Wednesday, December 29, 2010

Plans for travelling to NZ in 2011

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CNN has identified NZ as the 2nd best place to be in 2011. The big reason for this might well be the relatively low NZD and the World Cup Rugby in September 2011. Mind you, travellers ought to note the high cost of travelling in NZ. For travellers, you might like to reflect upon some of the costs, which are particularly high in tourist meccas like Queenstown.

We offer you some cheaper ways to keep costs down:
1. Buying a car - You can pick up a really cheap car through Turner NZ auctions in a number of major cities. Visit their website first before you come. You can always sell the car before you leave through TradeMe. This might be harder if you have no registered address in NZ, so set up your TradeMe account before you buy. You will probably want to buy other things anyway. It makes sense to buy a car if you are here more than a month I suspect. I suggest buying a car with a 1.6-1.8L engine to reduce the cost of NZD1.98/litre petrol.
2. Rent a campervan - This spares you the expense of accommodation as well as flexibility and difficulties finding a hotel. NZ is a quiet place so its not too difficult to find a place to stay the nice. Just make sure you park where there are toilets. Campervans are cheap in NZ because there is a lot of competition. If you need to get back to an airport for a flight out, consider www.standbycars.com for a nominally priced campavan return.
3. Buy all your food in Countdown and New World supermarkets. Restrict yourself to the token coffee and muffin at cafes for a token eating out experience. Catch your own fish. Fishing licence is required in NZ.
4. Internet is really hard to get in NZ, so it might be worth getting a pre-paid USD modem for around $100. Get the right download volume to meet your needs and time constraints.
5. Cost of living is high, so consider bringing all your camping needs. There is limited competition and you might not have time to buy stuff 2nd-hand from salvation army or 2nd hand shops, or from TradeMe.co.nz.
6. NZ experiences - Consider carefully the experiences you have because anything related to tourism is overpriced because of demand. i.e. The cost of entering Rotorua hot springs are excessive, so you are better off going to Yellowstone (USA). The old reasonably priced experiences in NZ are swimming at the beach, walking bush trails and renting houses. If you do overnight trips, alpine huts can cost anything from zero to $50/night, depending on demand. This is why camping is the ultimate stop-gap.
7. Flights - The best entries into NZ are Jetstar (from Australia or Japan), Air Asia X (from March from KL) from Gold Coast or Melbourne; as these are the discount airlines. Otherwise check out the www.jetstar.com website.

The best way to enjoy NZ is to visit in the summer and stay on a 3-month lease in places like Queenstown (South Is), Te Anau (Sth), Wanganui (Nth) and Auckland (Nth). This makes maximum use of your car. You can start in the south in summer, and spend the winter in Auckland.

Friday, December 17, 2010

Queenstown - Melbourne - Gold Coast - KL flights

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We are going off to live in Queenstown soon. I read in today's paper that Jetstar is opening up new flights from Queenstown to Melbourne and the Gold Coast. Queenstown is a popular skiing and water sports (summer) tourist town. The direct access to two major cities on the East Coast of Australia can be expected to attract more tourists.
We had already mentioned that Air Asia X, another discount airline will be offering flights to Kuala Lumpur, Malaysia from Christchurch from 1st Mar 2010. The good news is that you have another option from entering NZ through Queenstown from Asia. You can fly from Queenstown to the Gold Coast by Jetstar, and then fly to KL with Air Asia X. Of course the more direct route from Christchurch will probably be cheaper.

Wednesday, December 15, 2010

Air New Zealand's 'Space Couch' innovates air travel

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The future of the NZ economy depends on doing things smarter. If it does it enough, then perceptions about NZ will change for the positive. Here is a case in point. NZ has the capacity to develop niche, high value product and service exports. It also has the capacity to earn royalties for product design. A recent design royalty stream that Air NZ has developed is its 'Sky Couch' seats.
What a great opportunity for NZ to change the narrow perceptions of NZ as merely a farming country. I personally don't know why the airlines have not improved seating for years. I remember as a kid I was dreaming up ideas for more comfortable seating. Staying in capsule hotels in Japan only reminded me of the opportunities many years later. These designs by Air NZ do not even strike me as a particularly progressive move. More change can be expected.


Wednesday, December 1, 2010

New discount airline entrant to NZ - AirAsia X

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Good news for New Zealanders! AirAsia X, a Malaysian-based discount airline is flighting from Kuala Lumpur to Christchurch. The airline will start taking bookings from the 3rd Dec 2010 for flights from 1st March 2011. The promotion is offering flights for $99 plus taxes, which I guess will be around $150, so $250 each way. The problem is that AirAsia X and its competitor, Tiger Airlines, which only flies to Melbourne and Perth often offer a very cheap single route, so you pay full price for the return. This is a problem if immigration at your destination country requires an outward-bound ticket. Its fine if you are leap-frogging because you need only have '1 leap' booked ahead, but that's lost flexibility.
I have yet to fly AirAsia X, but like a lot of discount airlines, expect to pay extra for food, beverages, checked baggage, excess baggage and ticket changes. These airlines offer a lot of discounts, so its worth waiting for a good deal. Consider the options:
1. Jetstar - flights from Auckland or Christchurch to Melbourne, Sydney, Gold Coast, link to Jetstar or AirAsia X in Gold Coast or Melbourne for flights to Asia.
2. Jetstar - from Auckland direct to Japan (Osaka or Tokyo-Narita). Some discount airlines fly to/from Japan. i.e. Cebu Pacific, and Chinese airlines from Haneda Airport (Tokyo).
3. Air NZ - they offer cheap Asia flights for two in twin-ticket sales through the TradeMe website.
4. AirAsia X - they fly Christchurch to KL (Malaysia), with links to Japan, China, Thailand, the Philippines, Indonesia, etc.
5. Pacific Blue - their prices are generally not as competitive as Jetstar, but they do have sales, so worth a look. They are appealing for flights from Wellington to the East Coast of Australia.

More discount airlines for NZ is great news because it has been difficult for travellers to fly to NZ from Asia. Air NZ offers great service, but you pay for it. Jetstar and Pacific Blue also offer comparable service cheaply, but they have limited offerings. Wellington only offers a limited number of destinations because of its smaller airstrip. i.e. Confined to smaller planes. When booking flights from Wellington, unlike the other airports, they do not add their airport tax to the ticket price. This is wrong to me because passengers should be treated the same.

Monday, November 22, 2010

Short term accommodation in Auckland

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If you are flying to Auckland, New Zealand, then you will want a place to stay when you get here. If you are looking for a place to stay prior to boarding a flight, or before you seek accommodation, I recommend Proximity Apartments in Manukau City for several reasons:
1. You get a fully-furnished modern apartment for around $100/night - good for two people
2. There is plenty of after-hours parking around the building
3. You have an easy commute from the airport - its about 15 mins away, and its fairly close to the railway into the city
4. It adjoins the Westfield mall at Manukau City
5. The apartments have an after-hours service so you can check in late, or leave early.
6. There are a variety of restaurants and shops in the mall and in the vicinity. There are several nice restaurant/bars, or even a Wendy's and McDonalds outside of the mall.

For further information refer to this site.

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Wednesday, September 29, 2010

NZ road rules - second to none

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NZ had finally decided to change its antiquated road rules. In its wisdom some years ago, NZ bureaucrats decided to develop a set of unique road rules which even its smartest intellectuals would not abide by. These road rules are interesting because they attempt to embody 'politeness' into driver road rules. The scheme was a blatant failure. Why? Because people are inherently self-interested. The 'polite society' succumbed to the realities of human nature.
I am not even going to bother describing these silly road rules. Why? Because they are so counter-intuitive, you will start to have nightmares. But get this - these road rules - which no one follows - will not be changed for another 2 years. You might wonder why because the logic is that they should come in after the 2012 Rugby World Club. Why? I guess because NZ loves the opportunity to suffer longer, and because it wants to utterly confuse foreigners with its 'unique culture'. And I guess it does not mind losing a few more lives in senseless accidents. Oh, and I guess it never occurred to people that what comes naturally to people will be an easy adjustment. Expatriate NZ'ers will thank you for sparing them any more confusion.
Rather than waiting until 2012 to apply the changes, why not simply send every household a brochure about the road changes. i.e. 1.5 million households x $2 = $3mil plus costs. This is a lot cheaper than the $70 mil in losses due to increased road accidents. NZ could also do with the resulting lives for population growth, and it might even improve the country's rankings in the international relevance index.

Monday, November 30, 2009

Travelling from NZ

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It is fair to say that NZ is one of the more remote countries in the world, but it is not without its advantages. My partner put together the following comparison of Around-The-World flights for different countries/airlines, and New Zealand came up one of the best prospects for the countries we surveyed. Here is the list for airfares originating from different countries for 39k miles and 6 continents:
1. Malaysia - USD4,500
2. Thailand - USD4,400
3. United States - USD6,000
4. Australia - USD5,000
5. Philippines - USD5,000
6. New Zealand - USD3,500

If you want to book such flights you can visit the following site.
This is of course good news for people living in NZ wanting to make it a base for travelling around the world.
With respect to direct and indirect routes NZ still rates badly and there are several reasons for this:
1. Auckland is the only international airport offering many destinations
2. Auckland does not have the same number of destinations as some larger international airports
3. Connections to other cities like Sydney are an additional cost - albeit available through a discount airline like Jetstar or Pacific Blue (Virgin Group).
4. New Zealand is a low-traffic market so there is not a lot of competition on many routes.

I do note however that there are some attractive options from NZ:
1. Jetstar have a cheap flight from Auckland to Osaka/Tokyo. Tokyo is a good base to get to other Asian destinations
2. Jetstar to Gold Coast (Qld), then Air Asia to Malaysia

I hope this helps!

Monday, March 2, 2009

Cheap New Zealand flights

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The NZ aviation market is going through its greatest shake-up for a number of years with the commencement of operations by a number of outside players. Important changes include:
1. Jetstar - the Australian 'low cost' carrier owned by Qantas has started offering internal domestic flights in NZ. Check out their website.
2. Emirates Air - The Arab airline is now offering onward flights to NZ at cheap prices.

It seems probable that Air NZ will eventually merge with Qantas. The move of Jetstar into the local NZ market should give Qantas a better understanding of the local market. The trend is clear - we are seeing greater integration of the Australia & NZ markets. They will remain separate countries in name only. Auckland (North Island) and Christchurch (South Island) remain the principal gateways into NZ, but in a sense for international travellers, in a sense Sydney and Brisbane can also be considered gateways given the cost advantages of low cost flights from the East Coast of Australia.

Weak NZD a boon for emigrants

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The NZD is currently languishing at 49.5c in USD terms. The implication is that NZ becomes very competitive in the global market place. This is important in the areas where NZ has an advantage:
1. Food products
2. Forestry
But it also means NZ has a strong point in terms of software programming and web design. There are a great many services you can outsoource to Asia, but as regardless of where you look, you will pay for skills. Traditionally we would not expect a backwater like NZ to offer competitive skills. In fact the low average wages in NZ tends to drive skilled labour out. This is why in previous years we have seen people moving out of NZ as retirees moved in.
In certain areas like software programming, where businesses are not requiring daily contact with clients, and can readily deal with client issues over the internet, the reasons for basing a business in NZ are compelling. NZ in this context becomes one of the cheapest places to set up a business. My partner runs a business LVG Consulting which can perform low-end search engine optimisation in the Philippines, but by partnering with local skilled video design editors, she is also able to project manage an array of online product marketing services with greater skills that would cost far more in the larger markets. She operates this business from a rural town in NZ because the town offers all the support we need, and offers a very attractive environment to live and to raise kids. The town is full of vacant office space if you retire a shop front, and buying such property at the current low exchange rate makes a lot of sense. There is even a local college which offers a source of recruits. The college is even attracting graphic design students from Asia. It is remarkable just how international NZ has become in the two decades. The shift started when Asians saw the country as cheap place to learn English.
The big news is that Australia, NZ and the ASEAN group of nations have negotiated a free trade agreement. On top of an already weak NZD, access to Asian markets can be considered a very attract development. You can expect a lot of investment in NZ to flow from this decision. NZ productive land land over a certain size is out of bounds, but there is still possibilities for Asians to engage in food production in NZ to supply their markets. There is of course the opportunity for Chinese, Malay, Singaporean, Filipino millionaires to buy holiday houses in NZ as well - given the possible trade implications. NZ has traditionally been a expensive place to travel, but that is changing. The opening up of Trans-Tasman flight routes has recently seen the price of NZ to East Coast Australian flights plummet. Expect more of this as the NZ Prime Minister seeks further integration of the NZ-Australian markets. There will be flow-on effects for NZ. NZ of course makes a lot of sense for tourists because of its cheap currency and world-class landscapes. Cheaper access through Australia should also make a lot of difference.
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