By 
The Bay has done a great job of being a nice place to visit. More than that - the Bay is the the best place to live.
In order for people in the middle of their careers to live here we need good infrastructure of course, but just as important is reasonable and predictable commuting costs. I'm hearing more and more people complaining about the costs of Air New Zealand flights in and out of the Bay. One of the problems seems to be that the cheaper flight time have moved so they are not that useful for Commuters.
The 9:40 to Wellington, 4:20 return the next day for most of last year I could do for $138. That was great and those flight times work. This year it's looking more like a minimum of $248 and often $350+. Doing a day trip, even planned in advance, that includes the first flight is $442. Ouch!
In some of the local Bay business meetings I've been involved with I've never heard the term Commuter. I'm one of them. There are many of us that live in the Bay but earn our income elsewhere. When we see each other during the week in Auckland, Wellington or further afield we smile because we know that we're going back to the Bay for the weekend.
While it would be great if we could work and live here all year round, the reality is that there will always be a group of people in transition. I believe Commuters are an important part of the Bay business community and we should encourage them as part of our regional development strategy. Commuters are Hawkes Bay ambassadors. They are fiercely proud. They are sales people for other Hawkes Bay businesses - always on the look out for opportunities they can pass around. They earn money of the region that is spent here. They pull events here. They connect, and they are likely to pull in further investment.
For the Bay to attract more Commuters, flights are an issue.
I admire Air New Zealand, they are a great company. But no doubt the uncompetitive regional routes are subsidising the routes with competition.
Perhaps a way to solve this problem is for regions, in conjunction with Air New Zealand, to design a product suitable for Commuters from regional areas.
Maybe it looks like this:
The Commuter 50:
- 25 return tickets (50 legs)
- Prepay $4,999 (less than $100 a leg)
- Website features that allow the standard trip to be set up and then copy for the following selected weeks, including seating preference
- Use it or loose it, but up to 4 credits can be reassigned to later weeks with 1 week notice
The Commuter 50 would allow regions like the Bay to provide certainty of pricing for Commuters and therefore remove this key objection for attracting new valuable residents. This has to be a good deal for Air New Zealand and is a simple practical suggestion that local bodies and business groups can take to them to work through.
What do you think?
20:55, 26.04.2010
Two words. Video Conferencing.
At these prices the business case for VC is a no brainer.
21:00, 26.04.2010
Bloody brilliant idea if you ask me Rod. Not sure where the price point sits, but there has to be a strong price/demand elasticity argument that would see this as revenue positive for Air NZ – people’s propensity to travel and do work outside of Hawke’s Bay will increase. I have a need to be in Akld more regularly than I get up there, simply because of expense – for two of us at Tank to travel in a fortnight at off-peak times it will be costing $947 return (that hurts when you overlay rental car + hotels). Not withstanding the price/demand elasticity argument, Air NZ’s comfortable monopoly may dampen their enthusiasm – maybe it’s time for a regional airline that adopts a similar pricing philosophy?
08:35, 27.04.2010
Great idea Rod and whilst we thinking about making things easier and more cost effective for the business travel lets throw in a debit card system for the damn car parking ticket machine. How about they allow us to buy a preloaded card with a $100 of parking fee’s loaded which we can swip and entry and exit. When we need a top up we can go online or buy them at the cafe in the airport. How many of us lose our parking ticket machine or its get’s roughed up in the pocket such that the machine want print it?
08:53, 27.04.2010
Rod, I have had the same thoughts for some time and although I am not tripping around as often as you, my travel expenses for going up to Auckland and back at least one a month last financial year were huge. How about pitching a Commuter 20 as well priced at maybe around $2500 for us less frequent travellers but are also getting hammered by AirNZ
09:09, 27.04.2010
@Bruce – Don’t get me started on the %#$@% parking machine
12:38, 27.04.2010
It will need a Volcano clause now.
18:45, 27.04.2010
I like the idea Rod and sincerely hope Air NZ can make the numbers add up to justify introducing this sort of offer. Otherwise we are at the whim of market forces, in which case only air carrier competition into HB will drive lower fares. Competition looks likely to be on it’s way anyway following our runway extension. It will be interesting to learn whether Air NZ is listening in the meantime.
19:16, 27.04.2010
Update… Sitting on the Tarmac at CHCH and just watched the concern of a group of cyclists trying to get to HB for the National Club Cycling Champs. 7 bikes won’t fit on small Q300 prop planes. HB needs a better solution fullstop.
12:21, 28.04.2010
Wow, just had a meeting scheduled for 9:30 in Auckland on Monday. No early flight which I assume means all seats are gone. I literally cannot get to Auckland to make a meeting on Monday morning without heading out on Sunday night and miss key family time.
How much does that suck!
16:12, 30.04.2010
Couldn’t agree more Rod, as a frequent flyer I have really noticed the decrease in flights and increase in fares (where did that third option go?) over the last twelve months or so. Given the loadings this is obviously a very profitable sector yet the regulars who often need flexibility get screwed. Such a shame given the great job that our airline is doing. The Commuter 25 and 50, fly when you need to, twelve months to redeem. Lock in the cashflow and loyalty from your most loyal frequent flyers so they don’t flee when the inevitable competition arrives and we all remember how much we have been held to ransom!
Smart thinking.
And while we are on it, why is the food and beverage selection so crappy in the Napier Koru lounge? A plate of curled up sammies or incinerated savouries, two white wine selections (both Sauvs) five papers that depart on the first flight. Generally bloody second rate – regardless of the first class fare!
09:55, 04.05.2010
Does Mike Pero still have an airline going cheap?
11:16, 06.05.2010
dealing nationally as a HB buisiness is getting harder and harder because of the extortionate pricing being placed on us by air nz.
as a buisiness we have to be reactive to customer requirements of us and this is not conversant with booking six months ahead to get any chance of a reasonable price.
we have had two international visitors here and both were amazed at the high cost of the flights in and out of napier. one was due to return in june but is unsure wether they will make it down from auckland because of budget restraints. vc has a place but there is still a requirement to physically be there.
we would certainly be interested in a prepay system as suggested, but i also think it is time for our mp,s to start looking into the damage restrictive air fares create to HB as economic community. gary, firenzo fires.
10:38, 11.05.2010
Bit behind the eight ball…brilliant idea.. starter for the Commuter 25 Club thanks…can it work under the company name not an individual – sorry small team so we have turn about or it differs re who needs to go. Just a thought might as well make it absolutely perfect?!?
10:14, 21.05.2010
A great idea I have already sent a request to AirNZ as to when I can buy the first ticket?
I will support any move you wish to take in your approaches to AirNZ
cheers
Phil Read
17:49, 25.05.2010
Booked flights Wednesday for a flight on the Friday to a funeral in Nelson. Price for return to HB $700 each …..investigated driving to Wellington then a hop over the Strait $398 each.
We need to run a sweep on most expensive flight from HB……..am I winning yet?
15:16, 19.06.2010
Great idea Rod, count me in as a supporter/ potential user of the concept – let me know if you get it going…
12:53, 16.06.2011
Great idea Rod – count me in if u get this going