Auckland Airport | Determination NZ | April 2011 Repositioning AKL – Growing High Value Customer Base determination nz

Auckland Airport | Determination NZ | April 2011

Repositioning AKL – Growing High Value Customer Base

determinationnz

Facts • 2 Days

• 350 Airlines• 750 Airports

• 2300 Attendees• 28,000 Meetings

Facts • 2 Days

• 350 Airlines• 750 Airports

• 2300 Attendees• 28,000 Meetings

Routes – Competition for aircraft is fierce

Routes “speed dating” for airlines/airports

Market Development Loop

Market Development

Model &Techniques

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.

Target growth market segments through considered and detailed analysis of markets.

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


Seats Committed to AKL0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

20112010

We have already gained commitment to an extra1.5 million seats in the last 2 years.


Population size of countries accessed by direct flight


If we target high net value passengers


Asia is NZ Tourism’s growth engine

Asia Africa and the Middle East

Americas Oceania Europe

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

NZ Arrivals Growth as at YE March 2011


Asia for Building India Traffic Volumes

SIN HKG BKK KUL SYD BNE MEL

29649

19233

1296511022

8954

41565830

2358422120

10513

5413

9999

36575766

India Traffic via AKL by Key Route

Total 11 Total 10


Competing with Australia – International Arrival Forecasts

AKL’s existing First & Business Class demand generates a 42% loading in Premium Seats

17

27%

15%

58%

Premium Passenger YE Mar 2011

O&D AKL 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%

19

Overall international seat capacity at AKL is expected to rise 9% to YE April 2012

CZ has a very high proportion of premium cabin seats in the AKL market

20

It is expected that 15.8% of the UA AKL-IAH service seats will be in premium cabins

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.


2010 Forecast 2011 Forecast 20200

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000Outbound Trips from China

Outbound Trips from China

Outbound growth of 77% over next 10 years to over 100 million

Growth of 77%

Get ready for the growth

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

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

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.

“


Development of high value travel from China

Auckland Airport | Determination NZ | February 2011


There are 1.2m O/D passengers per year between Asia & Latin America.

Documents

Auckland Airport | Determination NZ | April 2011 Repositioning AKL – Growing High Value Customer Base determination nz