00:00:00
Speaker 1: You're listening to a Sharesies podcast.
00:00:04
Speaker 2: Let's talk about passenger numbers and frequency of flying and the like. Because I also wonder about the American market. We just wonder whether that market seems a bit elusive.
00:00:18
Speaker 1: Inbound performance, doesn't matter which market, it's very, very strong. And so brand and Z is very strong. You know, especially... in this chaotic world we live in, you know, positioning a stable, you know, scenic, sensible country as a holiday destination for people, it's really resonating. And we as Air New Zealand spend a lot of time not marketing Air New Zealand, but really New Zealand in markets like the United States and Asia and so on.
00:00:52
Speaker 2: You are 51% owned by the government, so I suppose that is part of the remit.
00:00:56
Speaker 1: That's right. And, you know, When New Zealand's doing well, New Zealand's doing well. We are inextricably linked, which is what makes my job even more meaningful, really. And what's promising from those long-haul markets as well is the premium demand is very strong. And that's, you know, it's not quite fully recession-proof, but it's by and large recession-proof, right? And it's, you know, high-quality tourism into the country. So we're doing... a lot of work drumming up that demand, but more importantly, actually converting that demand. And you will see us do very specific things. I'll give you an example. 40 million Americans travel long haul every year, 40 million of them. Less than 1% choose to come to New Zealand, but all 40 million of them, if you ask them, New Zealand's on their bucket list. So we are this perpetual bridesmaids. Because when it comes to booking their next long-haul holiday, they go, I'd love to go to New Zealand, a bit too far away maybe, and maybe next time. So we're the perennial next time destination, right? So we need to change that. And so for us, changing that is a complex equation. But the first thing we're doing is really focusing on sleep. We're saying to the American market, look, New Zealand's actually not that far away. It's one sleep away, even from New York. And by the way, we're the best airline in the world as far as sleep is concerned. So you'll be even more rested when you turn up to New Zealand and you'll be ready to go, right? So very specific messaging around breaking down that tyranny of distance. We want to be able to convert more of that long haul market, addressable market, even a single percentage point improvement. So if you go from less than 1% to 2%, that will have a material impact on, you know, to New Zealand GDP. It's a big market. And so a big focus is going on in that space. What we've historically done, not just Air New Zealand, generally New Zealand Inc. in the US market is played the game of our bigger competitors without having the deep pockets to be able to go toe to toe, you know, our tourism marketing budget is the equivalent of South Australia's. So trying to outbid, you know, billboards and Times Square or bus shelters around the big cities or whatever, we just, our money doesn't go far enough. Instead, we're using AI and modern techniques to be very surgical about precision marketing below the line, speaking to customers that we know have a propensity and interest to come to New Zealand, and trying to put the right offers at the right time. So they not only have us on the bucket list, but they actually make a booking and convert that into reality. So a lot of that work is going on in the Asian markets and in the US market and so on. And we're seeing some really good early positive signs. I mean, we have one of the best tourism propositions to position to the world. And we need to do that well. And so also, I think part of that is to not caricaturize New Zealand to these very traditional messages about who we are. You know, we're a modern, vibrant, you know, innovative society that's doing really sensible stuff, where the world is doing some really, you know, not so sensible stuff. And so part of what I'm asking our teams to do is to position modern New Zealand to these markets, because it really does resonate. You know, it's not just New Zealand as a destination, but very specific messages around wellness or, you know, sport and golf-based tourism, beautiful food and wine offerings. You know, I spend a lot of time explaining to my tech friends in the valley and on the West Coast and so on about how interesting the country is to come and set up their base and, you know, invest in our small businesses and so on and so forth. Investing involves risk. You might lose the money you start with. We recommend talking to a licensed financial advisor. We also recommend reading product disclosure documents before deciding to invest.
Speaker 1: You're listening to a Sharesies podcast.
00:00:04
Speaker 2: Let's talk about passenger numbers and frequency of flying and the like. Because I also wonder about the American market. We just wonder whether that market seems a bit elusive.
00:00:18
Speaker 1: Inbound performance, doesn't matter which market, it's very, very strong. And so brand and Z is very strong. You know, especially... in this chaotic world we live in, you know, positioning a stable, you know, scenic, sensible country as a holiday destination for people, it's really resonating. And we as Air New Zealand spend a lot of time not marketing Air New Zealand, but really New Zealand in markets like the United States and Asia and so on.
00:00:52
Speaker 2: You are 51% owned by the government, so I suppose that is part of the remit.
00:00:56
Speaker 1: That's right. And, you know, When New Zealand's doing well, New Zealand's doing well. We are inextricably linked, which is what makes my job even more meaningful, really. And what's promising from those long-haul markets as well is the premium demand is very strong. And that's, you know, it's not quite fully recession-proof, but it's by and large recession-proof, right? And it's, you know, high-quality tourism into the country. So we're doing... a lot of work drumming up that demand, but more importantly, actually converting that demand. And you will see us do very specific things. I'll give you an example. 40 million Americans travel long haul every year, 40 million of them. Less than 1% choose to come to New Zealand, but all 40 million of them, if you ask them, New Zealand's on their bucket list. So we are this perpetual bridesmaids. Because when it comes to booking their next long-haul holiday, they go, I'd love to go to New Zealand, a bit too far away maybe, and maybe next time. So we're the perennial next time destination, right? So we need to change that. And so for us, changing that is a complex equation. But the first thing we're doing is really focusing on sleep. We're saying to the American market, look, New Zealand's actually not that far away. It's one sleep away, even from New York. And by the way, we're the best airline in the world as far as sleep is concerned. So you'll be even more rested when you turn up to New Zealand and you'll be ready to go, right? So very specific messaging around breaking down that tyranny of distance. We want to be able to convert more of that long haul market, addressable market, even a single percentage point improvement. So if you go from less than 1% to 2%, that will have a material impact on, you know, to New Zealand GDP. It's a big market. And so a big focus is going on in that space. What we've historically done, not just Air New Zealand, generally New Zealand Inc. in the US market is played the game of our bigger competitors without having the deep pockets to be able to go toe to toe, you know, our tourism marketing budget is the equivalent of South Australia's. So trying to outbid, you know, billboards and Times Square or bus shelters around the big cities or whatever, we just, our money doesn't go far enough. Instead, we're using AI and modern techniques to be very surgical about precision marketing below the line, speaking to customers that we know have a propensity and interest to come to New Zealand, and trying to put the right offers at the right time. So they not only have us on the bucket list, but they actually make a booking and convert that into reality. So a lot of that work is going on in the Asian markets and in the US market and so on. And we're seeing some really good early positive signs. I mean, we have one of the best tourism propositions to position to the world. And we need to do that well. And so also, I think part of that is to not caricaturize New Zealand to these very traditional messages about who we are. You know, we're a modern, vibrant, you know, innovative society that's doing really sensible stuff, where the world is doing some really, you know, not so sensible stuff. And so part of what I'm asking our teams to do is to position modern New Zealand to these markets, because it really does resonate. You know, it's not just New Zealand as a destination, but very specific messages around wellness or, you know, sport and golf-based tourism, beautiful food and wine offerings. You know, I spend a lot of time explaining to my tech friends in the valley and on the West Coast and so on about how interesting the country is to come and set up their base and, you know, invest in our small businesses and so on and so forth. Investing involves risk. You might lose the money you start with. We recommend talking to a licensed financial advisor. We also recommend reading product disclosure documents before deciding to invest.
