Repositioning AKL – Growing High Value Customer Base
nz
determination
Auckland Airport | Determination NZ | April 2011
Routes – Competition for aircraft is fierce
Routes “speed dating” for airlines/airports
Facts
• 2 Days
• 350 Airlines
• 750 Airports
• 2300 Attendees
• 28,000 Meetings
Market Development Loop
Target growth market
segments through
considered and detailed
analysis of markets.
Learning from results to
improve our knowledge
and develop sustainable
market structure.
Securing capacity growth
is a fundamental outcome
of the demand stimulation.
Stimulate through
influencers, remove
impediments to growth
(Visas etc), create market
segmentation, building
high value markets,
develop market structure.
Market
Development
Model &
Techniques
Work with key influencers
for the route and market.
This can be industry
partner, airline, airline
executive, politician,
consumer opinion leaders
or distribution agent.
Need to stand out from the crowd
Routes “speed dating” for airlines/airports
In Guangzhou previously limited promotion as less capacity
Develop programmes to advance capacity
Guangzhou Daily Travel session: 4th Jan 2011
GZL & AIAL JV adverts about CNY and
high season products
Build the alliance connections and advance the market.
Develop greater connections and more capacity
34 international destinations
10
We have already gained commitment to an extra
1.5 million seats in the last 2 years.
1,600,000
1,400,000
1,200,000
1,000,000
2011
800,000
2010
600,000
400,000
200,000
0
Seats Committed to AKL
Auckland Airport | Determination NZ | April 2011
Population size of countries accessed by direct flight
Auckland Airport | Determination NZ | April 2011
If we target high net value passengers
Auckland Airport | Determination NZ | April 2011
Asia is NZ Tourism’s growth engine
NZ Arrivals Growth as at YE March 2011
60,000
40,000
20,000
0
Asia
-20,000
-40,000
-60,000
Auckland Airport | Determination NZ | April 2011
Africa and the
Middle East
Americas
Oceania
Europe
Asia for Building India Traffic Volumes
India Traffic via AKL by Key Route
Total 11
Total 10
29649
23584
22120
19233
12965
10513
11022
8954
9999
5830 5766
5413
SIN
HKG
Auckland Airport | Determination NZ | April 2011
BKK
KUL
4156 3657
SYD
BNE
MEL
Competing with Australia – International Arrival Forecasts
Auckland Airport | Determination NZ | April 2011
AKL’s existing First & Business Class demand
generates a 42% loading in Premium Seats
Premium Passenger YE Mar 2011
27%
58%
15%
O&D AKL
17
Connecting
Available Seats
However, AKL has approximately the same
number of premium seats as MEL
18
Over the coming year, premium seats at AKL are
expected to rise by 113k, or 11%
Overall international seat capacity at AKL is
expected to rise 9% to YE April 2012
19
CZ has a very high proportion of premium cabin
seats in the AKL market
It is expected that 15.8% of the UA AKL-IAH service
seats will be in premium cabins
20
Singapore and London have the highest
proportion of premium cabin demand
21
China is scarily big with massive wealth!
• 1.34 billion people
• China replaced the United States as NZ's
second-largest export market at US$2.66
billion.
• 57 million outbound trips in 2010
• NZ currently 0.2% of market.
• One in every 175 people in Shanghai has
personal wealth of US $1.5 Million.
• Estimated 4,000 RMB billionaires in China.
• 30% of London luxury good sales made to
Chinese travellers.
Auckland Airport | Determination NZ | April 2011
Get ready for the growth
Outbound Trips from China
120,000,000
100,000,000
80,000,000
60,000,000
2010
Forecast 2011
Forecast 2020
40,000,000
20,000,000
0
2010
Forecast 2011
Forecast 2020
Outbound growth of 77% over next 10 years to over 100 million
Auckland Airport | Determination NZ | April 2011
Targeting the wealth and social media
•30 % of London premium goods sales sold to Chinese
travelers.
• By 2015 China will be No 1 market for luxury goods,
with annual sales of $14.6 billion
•Mercedes Benz report 128 % growth in first 10mths of
year.
“
Facts
• Internet users in China 420 million
• 19.8 hours per week per user
• USD 36.5 billion online shopping
• 176 million social network users
• 265 million on online gaming
Development of high value travel from China
Auckland Airport | Determination NZ | April 2011
Auckland Airport | Determination NZ | February 2011
There are 1.2m O/D passengers per year
between Asia & Latin America.
Auckland Airport | Determination NZ | April 2011