Data released by Kiwibank shows Kiwi travel spend was down for the summer holidays—however retail travel chain sources are reporting no slow down in booking levels.
The Kiwibank transactional data out this week shows total Kiwi spending for Dec-Jan was up 2.3% on the 2024 monthly average—however the bank notes that the typical spending spike ‘was far more muted than previous years’. Year on year the total volume of spend fell 1%, it adds.
. . . Travel Down?
Kiwibank says its data shows travel spend took a hit for the period under review. “It seems that Kiwis also opted for local leisure and exploring their backyards over the summer. Compared to previous years, spend on recreation underperformed over the summer holidays,” it says. “Jan saw a seasonal lift, but one of a smaller bounce.”
Despite cheaper airfares, the bank says its data shows that the volume of spend on flight bookings was down 4% on the same time last year. “Meanwhile hotel and accommodation spend posted an even larger fall, down 17%,” it adds.
. . . No Slow Down
Local retail chain sources are reporting no dent in Kiwi travel demand—while South Pacific and short-haul sales were up for the Dec-Jan period.
”I’m surprised by that [Kiwibank] data because it’s certainly not what we are seeing, or indeed the feedback from across the industry,” says Helloworld New Zealand gm Chris Hunter. “In fact I’ve just been speaking with our branded stores and they’ve all started the year off very strongly. The Pacific Islands are a top performer at the moment, and both inquiry and sales remain strong”
At the same time, House of Travel is reporting a bullish start to the year, and a spike in bookings from a younger demographic.
“Despite ongoing cost-of-living challenges, [HoT] is experiencing a continued prioritisation and passion for travel in 2025,” says HoT retail director Jayne Alldred. “Our New Year’s sale resulted in a 20% increase in bookings compared to last year, with 54% of those bookings coming from new customers under the age of 35.”
Alldred is also reporting some changing Kiwi booking patterns.
“Our latest research also found that 57% of customers plan to spend over $10,000 on international travel this year, compared with 43% in 2024,” she adds. “More people are considering off-peak travel though, as a likely strategy to manage costs.”
