House of Travel on Air NZ Price Rise
The following is a statement from Brent Thomas - Director of Retail for House of Travel regarding the announcement of
Air New Zealand to increase their fuel costs and the decision by them to include fuel costs in their ticket price.
"Today's announcement that Air New Zealand will be increasing their domestic and international airfares in May as a
result of higher fuel prices is not unexpected given the recent devaluation of the New Zealand dollar and the continued
increase in international oil prices. The reality is that prices for international travel from New Zealand to many
destinations are more competitive now than they have ever been and that a 10% increase to fares will have little impact
on a customer's decision whether to travel or not. House of Travel's sales are currently at an all time high and we do
not envisage that demand will drop.
It is a shame that the increase has been announced at the same time that Air New Zealand also announced that they will
include the fuel and insurance costs in their ticket prices, as this is a very positive move and one we know will
attract favourable comments from our customers. Having what has been traditionally known as a "fuel surcharge" included
allows for clarity and less confusion which is what customers have been asking for.
The reality is customers have always perceived the fuel surcharge as a nuisance and an ugly surprise once they have
decided to book flights. What we need now is more airlines to join Air New Zealand, Freedom Air, Pacific Blue and Jet
Star, which will allow customers the ability to compare apples with apples.
Of course the next step, recognising it is complicated for long-haul flights, is to have airport taxes and government
taxes included. That way customers will know outright exactly what it costs to fly to a particular destination."
ENDS