Discounted NZ flights to attract tourists

Share |

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
Profit from mining with Global Mining Investing eBook

Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

NZ is a difficult and expensive travel destination

Share |

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

Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

Competition alive and well down under

Share |

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.

NZ Property Guide Philippine Real Estate Guide Japan Foreclosed Guide

Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

Discount airlines flying to New Zealand

Share |

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

Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

Queenstown - magical place

Share |

I was speaking to an Australian today...if you read this....sorry for cutting you off. I was tinkering around with Google at the time.

Anyway, there are a great number of Australians showing interest in NZ. I understand the appeal, but I must make the point that you don't know the place until you live here. I have lived here two years, and my advice is....do your research. Commonsense I know. There are things you will need to know. I think for most people the Queenstown region offers the greatest appeal even if you only buy an investment property here. The appeal might wear off if you experience a winter here....but then some of you like the snow.

I personally believe Queenstown airport will be used for domestic flights in future, and that there will be a centralised airport built around Gore to service Dunedin, Invercargill, Wanaka and Queenstown. These three centres are a significant distance from Christchurch, so they need a new airport. Queenstown is 6.5 hours from Christchurch. This area has a lot of appeal. The people here are more international, the shops and service are better. The rest of NZ (apart from Auckland) is held in a cultural vortex. Progressive minds leave....retirees enter and keep to themselves. Its a beautiful country...but like Australia it is dominated by idiots. I prefer to live in Japan where they are all saints because I don't understand them. You can however etch out your own existence here. There are plenty of bars, restaurants, walks, rides to provide a superficial and amusement-filled life. The infrequent gratuity goes a long way... and it will sustain you for a week of solitude. Sounds like paradise to me. :)

NZ Property Guide Philippine Real Estate Guide Japan Foreclosed Guide

Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

Queenstown - Melbourne - Gold Coast - KL flights

Share |

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.

NZ Property Guide Philippine Real Estate Guide Japan Foreclosed Guide

Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

New discount airline entrant to NZ - AirAsia X

Share |

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.

NZ Property Guide Philippine Real Estate Guide Japan Foreclosed Guide

Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

The most inaccessible country in the world

Share |

I am willing to bet that NZ is the most inaccessible place to go in the world. Its terrible! Whether you are flying in or out. The good news is that flights are not so expensive anymore. The problem is:
1. Trying to get connections
2. Trying to get flights at reasonable times

I have tried all types of routes to get to the Philippines. I have looked at leaving from Wellington or Auckland. I've looked at flights through Melb, Sydney, Gold Coast, so I could get a cheap flight with Asia Asia. The problem I have is connections. Each requires staying overnight in Australia. Why? Because the NZ flights leave too late, or don't fly direct. I can't even get to Melbourne by noon.

This is not the first time I've had this problem. Its a constant problem. Of course I can always fly Air NZ. Great service, but never competitively priced. I remember attending a conference in Wellington, and I had to fly the day after in order to get back to Sydney, and I had the same problem arriving.

Telephone service with Jetstar is pretty poor, though their flights are cheap.