Air New Zealand has launched a frequent flyer card enabling passengers to save up to 30% on all regional airfare types. The Starfish Card is valid for one year from the date of purchase and will initially be on sale for a two-month trial period. It does not apply to trans-Tasman flights or services between the main city ports of Auckland, Wellington, Christchurch, Dunedin and Queenstown.
Two cards will be available, one giving a 15% discount and costing $200 and another costing $800 but giving card holders a 30% saving. “We expect to see stimulation in demand as customers maximise the opportunity to travel at lower costs than ever before,” said Air New Zealand group general manager Australasia Bruce Parton.
I think this would work for me - well the $200/-15%. I don't take a lot of regional flights, but they're mostly last minute and high fare classes. Better grab one while the trial is going.
Note it says not valid for trans-tasman - does this means it includes the islands? If so I'd go for the $800/-30% and could likely expense it with my employer
If they want to stimulate demand whynot just lower the fares? I can see that the people who fly regular provincial routes will take advantage, but where is the stimulus to get people who would otherwise drive to use NZ instead?
Uh? Well if one is spending nzd1334 or more per year on regional flights then the $200 starcard is going to be a good thing in the sense that it will save you money.
And if one is spending nzd2667 or more then the $800 starcard is a good thing in that it will save you money.
Maybe there are other reasons, but these are the two that spring to my mind.
Programs: Air New Zealand airpoints since 1992, currently *Silver, Koru Club
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Quote:
Originally Posted by Share Investor
Can anyone tell me why this is a good idea?
Well it's certainly a good idea for NZ. They get money up front and, if they're lucky will make even more because those taking it up don't fly enough to save any money themselves. And more people might fly more thinking they will save money and some might.
If they want to stimulate demand whynot just lower the fares? I can see that the people who fly regular provincial routes will take advantage, but where is the stimulus to get people who would otherwise drive to use NZ instead?
Quote:
Originally Posted by nzlilibet
Well it's certainly a good idea for NZ. They get money up front and, if they're lucky will make even more because those taking it up don't fly enough to save any money themselves. And more people might fly more thinking they will save money and some might.
Cynical? Yep.
Air NZ also benefits if people buy more than they would have otherwise, even for those who save $$ through the card.
I quite like the idea - those who have committed to spending a minimum amount can benefit while the one or twice a year flyers do not. The more you spend the more you save (relative to not having the card). Air NZ can still control yields so there shouldn't be significant downside for them, with potential for great upside.