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The airports of New Zealand more than just pretty runways Simon Moutter

The airports of New Zealand more than just pretty runways Simon Moutter . Do New Zealand airports exist to. Safely and efficiently process aircraft and people movements? or to ……. Grow travel, trade and tourism for New Zealand. We have a collective influence. Between us, we;

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The airports of New Zealand more than just pretty runways Simon Moutter

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  1. The airports of New Zealand more than just pretty runways Simon Moutter

  2. Do New Zealand airports exist to Safely and efficiently process aircraft and people movements? or to ……..

  3. Grow travel, trade and tourism for New Zealand

  4. We have a collective influence • Between us, we; • Welcome and farewell over99% of international travellers to our country • Contribute directly to around 20% of New Zealand’s GDP • Impact the travel service experience over 25 million times a year • Can materially impact the recovery from the recession

  5. NZ Inc needs airports to reset their purpose towards growing travel, trade and tourism Volume is our shared value-driver

  6. The cold hard facts Holiday travellers to New Zealand have not been growing

  7. The cold hard facts …. • 16 airlines fly into Melbourne or Brisbane that don’t fly to NZ

  8. The cold hard facts We have not participated in worldwide air cargo growth Source: Annual Report, Boeing World Air Cargo Forecast, Statistics New Zealand, UN WTO Website “Tourism Highlights”.

  9. The cold hard facts • New Zealand’s share of high spending traveller markets is softening: • Japan market travel declined by 43% in 4 years • South Korean visitor spend down 22.8% in last year • UK visitor spend down 18.6% in last year

  10. The cold hard facts Australia has 162 more flights per week from Singapore. 10 times NZ 3.4 million extra seats.

  11. The cold hard facts We face incredibly tough competition for tourism growth from other markets – like Australia NZ focused on Australia Australia is more bullish on US growth Australia is much more ambitious for growth out of Asia

  12. And worse, The industry sectors we work within think we are fat, lazy monopolies “Airport companies exist for the sole purpose of extracting money from airlines and the public – profit for shareholders above all else ..... The rampant greed wouldn’t be so bad if it were at least accompanied by some kind of ‘pleasantness’ ..... (instead of) haughty demands – all perfectly legal of course – from the unassailable position of the arrogant monopolist.” Rob Neill – Pacific Wings Editor August 2009 And policy makers mostly sympathise with them

  13. It’s time for change Time to make a bigger effort for New Zealand Time to improve our messaging Time to sit at the top table Time to reset our strategies and priorities Time to invest our money in promoting travel, trade, and tourism

  14. 4P’s of Marketing

  15. Product – lots of ways to improve • Good, better, best choices for everything we sell • End-to-end airport service experience highly managed and consistently outstanding • Uniquely kiwi and uniquely regional branding evident • Freight forwarding facilitation needs to be much more competitive with modal alternatives (e.g. fast shipping)

  16. Price – it’s not just about aero charges • Relentless growth in per pax aero charges needs to stop • Good, better, best price choices for differentiated service offerings need to be available • Airports can work to reduce the end-to-end costs that airlines, trading businesses and travellers incur

  17. Promotion – put some money on the table • Pax volume is our biggest value driver (and NZ Inc’s) so it makes sense to invest in promotional activity • Air services development is costly and complex so the airlines need our help • Tourism industry spend is brand focused from the centre and fragmented from the regions • Airports need to put some money up and get a seat at the top table to better influence the targeting of promotional spend

  18. Some outcomes to target • Keep 3 carriers on the key domestic routes and grow regional services • Become more influential in tourism industry policy settings • Widen the central Government tourism promotion marketing mix to incorporate air services development funding support • Get airline costs in relation to airports tracking downward • Deliver best-in-class, uniquely-Kiwi service experiences to all travellers at our facilities • Build a seamless nation-wide and international air freight proposition that gets tonnage onto a double digit growth trajectory • Sustainably grow passenger volumes at more than 2x GDP growth

  19. Questions

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