New research dispels suggestions New Zealand tourism too expensive for the domestic market

March 17, 2021

New research from Wellington-based research and strategy company, Angus & Associates, suggests two thirds of New Zealanders believe they received good or excellent value for money from their last domestic travel experience – dispelling the perception that travel around New Zealand is too expensive and suggesting that there could be an argument for struggling operators to increase prices in some cases.

Only 8% thought their experiences were poor or extremely poor value for money.

The ongoing study asks recent New Zealand domestic travellers to what extent they thought their experiences provided value for money with results collected separately for accommodation, activities and attractions, transport, and dining experiences.

Between January and March 2021 respondents who had travelled in the last 12 months were asked to comment on their most recent travel experience. Accommodation took the lead with 73% of respondents stating they had received good or excellent value for money, activities and attractions 68%, transport 66% and cafes, restaurants and bars 66%.

Managing Director of Angus & Associates, Cristine Angus explains “we run many research programmes for clients throughout New Zealand and the results we have seen are quite different to some of the public discussion that suggests tourism is too expensive for the domestic market.”

To test this difference, Angus and Associates included a value for money question in its ongoing Views on Tourism research programme. This self-funded programme is designed to understand everyday New Zealanders’ perceptions of the impacts and benefits of tourism.

These early results – which are based on a nationwide sample of n=500 Kiwi travellers – indicate that New Zealand tourism providers are delivering good value for money for the domestic market.

Angus adds “far from supporting the view that the industry should further drop its prices for the domestic market, the high proportion of respondents indicating they received ‘excellent’ value for money suggests there could be an argument for struggling operators to increase prices in some cases.”

Angus points to the importance of objective market research in times of crisis so that businesses can avoid the risk of being driven by the loudest voice and identify opportunities for adapting to new market conditions.

This research comes on the back of the positive results from Tourism Industry Aotearoa’s Domestic Visitor Satisfaction survey which shows high levels of visitor satisfaction and engagement over the summer season.

The value for money questions are an ongoing feature of Angus & Associates’ tourism tracking programmes.

Image – for illustrative purposes only. Wellington’s famous Cable Car courtesy of New Zealand Now

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