Justin-Tighe Umbers is the Board of Airline Representatives director. Video / Jed Bradley
Flight Centre says travel inquiries surged by 75 per cent the day border restrictions for vaccinated Kiwis were relaxed and in research released yesterday travel will change this year compared to before the pandemic.
The firm says it has seen a correlation between vaccination rates and travel confidence, with asteady increase in bookings since September last year when the New Zealand Government ramped up the nationwide vaccination drive.
The desire to travel again has been evident looking back over the last two years, where there have been clear spikes in travel bookings almost immediately after Government announcements on travel bubbles, including with Australia and the Cook Islands.
Last week the most popular destinations (other than domestic and the Cook Islands) were London, Brisbane, Sydney and Melbourne. Additionally, they had a number of bookings to Mumbai and Delhi.
According to the firm's research of around 160,000 clients last year, 88 per cent of them intend travelling overseas in the next year.
''We are seeing some interesting travel trends emerge on the back of the pandemic, like a growth in demand for flexibility, as well as a surge in demand for luxury travel as people want to make the most out of their holiday after missing out for two years,'' said David Coombes, Flight Centre Travel Group NZ's managing director.
''Though it has been overshadowed in the news headlines as of late, climate change continues to be high on the priority list for governments and businesses around the world, and this is no different in the travel sector.''
In its Travel Trends report, Flight Centre says it is expecting a swift comeback. Travel bounced back quickly in markets where travel restrictions have eased. In 2021, Flight Centre Travel Group's South Africa, France, Mexico and the United Arab Emirates branches returned to profit quickly after border restrictions were lifted.
Booking numbers are also heading back towards profitable levels in other parts of Europe, the Americas and Australia.
Flight Centre's October and November 2021 bookings to Fiji from New South Wales and Victoria surged above pre-Covid levels following the re-opening of both state's international borders.
The report says more people are returning to travel agents for guidance and help as travel becomes more complicated with uncertainty and quickly evolving testing and border requirements.
Flight Centre Travel Group NZ managing director David Coombes. Photo / Dean Purcell
One main reason for travel will be reconnecting with families. About 30 per cent of Kiwis surveyed say this will be the driver to travel.
According to the latest OECD data, New Zealand has the fourth-highest rate of foreign-born residents and the second-highest rate of citizens living overseas. The Covid-19 pandemic prevented many of these people from being able to connect with loved ones over holidays, weddings, birthdays, funerals and everything in between.
''The sheer number of Kiwis entering the MIQ lotteries over the last two years shows the desperation of New Zealanders to reconnect with loved ones,'' the report says.
This extends to people wanting to leave the country as well.
A virtual Travel Runway event last November showed 31 per cent of participants wanted beach holidays, followed by luxury holidays (25 per cent) and adventure (17 per cent).
On luxury, the report says that to make up for the holidays travellers have missed, many are willing to spend more on a trip than what they would have pre-Covid, to ensure it's one to remember.
''Most notably, in Flight Centre's largest market, Australia, average booking value for international and domestic travel for both flight-only and package bookings, almost doubled.''
In a trend that will be welcomed by airlines, business and first class bookings through Flight Centre Australia were also up, rising from 11 per cent of the average booking in 2019 to 14 per cent for 2022.
Premium cabin bookings through Flight Centre New Zealand were up from 4 per cent to 6 per cent in the same period.
''It's worth noting that some of these premium tickets may have been sold because people were desperate to get home in 2021 and willing to pay extra if it meant securing a seat.''
External research suggests it's the social-media inspired Millennials and Gen Z who are driving up demand in the luxury market.
The 2019 Luxury Goods Worldwide Market study reports that Millennials account for 35 per cent of the luxury market and that's expected to grow to 45 per cent by 2025. Gen Z are estimated to hold 40 per cent of the market by 2025.
The report says there is growing interest in sustainable travel.
A first-class suite on a Singapore Airlines A380. Premium bookings are growing. Photo / Dean Purcell
''As the fresh faces of climate change activism, it is no secret that Millennials and Gen Z prioritise sustainability and social responsibility when it comes to spending cash. This also correlates to how they are travelling.''
As such, there are increasing options for travellers to have their adventures directly contribute to things like conservation, gender equality, indigenous culture preservation and more.
''We are also seeing a rise in eco-tourism attractions around the world, with entry fees often contributing towards conservation projects or the protection of local ecosystems.''
Additionally, many accommodation providers hold sustainability certificates that verify them against internationally-recognised sustainability standards. This includes reducing food waste, sourcing electrical energy from renewables, and investing in electric vehicles.
