Tourism Industry Aotearoa boss Rebecca Ingram on prices and what sector wants from Government

Rebecca Ingram, Tourism Industry Aotearoa CEO, says it's getting more expensive to run a business but changes to prices must be carefully considered. Photo / George Heard

Rebecca Ingram says New Zealand’s tourism businesses are grateful for the support of Kiwis during the pandemic and they should price fairly as costs for domestic holidays soar.

The chief executive of Tourism Industry Aotearoa said it is getting more expensive to run a business but they have to consider closely how much they charge.

‘’My expectation is that every tourism business will price fairly based on their situation and I also know that the tourism businesses that so appreciated New Zealanders’ support during Covid ... are very conscious of wanting to make sure Kiwis can still experience the country,’’ said Ingram who has been in the job for the past 18 months.

‘’It’s a balance - managing these cost increases which are considerable and the complexity of recovering as a business is something that many tourism businesses are having to think really carefully about.’’

Tourism Minister Peeni Henare said before this year’s Trenz industry showcase that some price rises have been extreme.

Hotel prices and air fares have climbed steeply during the past year and petrol prices are on the way back up. But New Zealanders, who took to touring the country in record numbers when borders were shut, have this year still been keen on holidays here, according to Trip Advisor data which shows 64 per cent of accommodation searches in the second quarter of this year were from within the country.

Asked whether there should be differential pricing for Kiwis and overseas visitors, Ingram said it was up to individual businesses to make the call.

The Great Walks were more expensive for those who don’t hold a New Zealand passport.

‘’But I think, you know, I trust every tourism business to set the price that’s for you for their product, and if they want to do differential pricing that’s up to them.’’

Before TIA Ingram spent seven years at government agency Tourism New Zealand (TNZ), where she held various roles including general manager of New Zealand and government relations.

She has a marketing background and was previously responsible for TNZ’s public relations and major events when the last of the Lord of the Rings movies was released.

The 43-year-old grew up in Christchurch and Wellington and has also worked on engagement and advocacy programmes, leading complex transformation in her time at Spark (then Telecom) and Chartered Accountants Australia & New Zealand with Craig Norgate.

‘’I had the pleasure of being mentored by him for a couple of years, which was really amazing.’’

TIA has about 1300 members from big companies such as airlines and airports to family firms and sole operators. The number of international tourists was overwhelming some communities at some times of the year but are now running at just below 70 per cent of pre-pandemic levels where close to four million visitors arrived a year.

‘’I see us on the cusp of the next generation of tourism and it was bubbling away pre-Covid, but certainly the last couple of years have provided both the space and the opportunity for reflection and evolution of many tourism businesses.’’

South Island ski fields are popular with Australian visitors. Photo / Tourism New Zealand

Many operators face paying large commissions to overseas booking sites – online travel agents (OTAs) - which have been blasted by another group, Hotel Industry Aotearoa, for taking profits overseas while local businesses take all the risks. Although they provide an international ‘’shop window’' they rake off commissions of more than 15 per cent from some accommodation businesses.

Ingram, who came into the TIA role when it had to be less combative with the Government, is also cautious on the OTA issue.

‘’If you’re travelling somewhere that you’re less familiar with, then you’re probably going to want some support whether that comes through an OTA or whether it comes through a travel agent,’’ she said.

But one trick is to use the OTA platform to compare prices and then contact the provider yourself.

‘’You might also want to go on some of those platforms but what I would say to New Zealanders is if you can book direct - give them a call and tell them you’re coming.’’

What does Ingram want from the Government?

Even before the pandemic, funding increases had been paused for TNZ which sells Aotearoa to the world.

Ingram said new immigration settings had helped businesses desperately short of staff but there were still shortages in some areas, such as chefs.

‘’I think what the tourism industry wants from a minister is someone who’s invested in them and recognises that the tourism industry in New Zealand is actually small and medium size businesses.’’