New Zealand Christmas Rates Trending Lower on Strong Comps

Margin Fuel’s November Market Insight Report reveals that overall rental rates deceased by 9%, year over year.

Margin Fuel released the following data:

• The average rate for Auckland Airport -10% YoY
• Christchurch Airport average rate was -4% YoY
• Queenstown Airport average rate was -8% YoY

At the Auckland Airport, Net Agent OTA sales channel average rate was lower by 8% than the previous year; the Gross Agent OTA and the direct sales channels showed decreases of 13% and 8%, respectively. 

The average rate for three-day duration decreased by 7% , while the average rate for a seven-day rental period was -11%, and 14-day period -13%. 

The average rate for SUVs in Auckland decreased 11% year over year. All other categories showed average rates of between -2% and -11%.

At Christchurch, Net Agent OTA sales channel average rate increased 1%, while Gross Agent OTA and the direct sales channels showed decreases of 9% and 4%, respectively. The average rate for three-day duration decreased 5%, while the average rate for longer seven-day and 14-day durations were both lower by 3%. 

The average rate for SUVs decreased 11%, with all other categories showing average rates of between +2% and -2%.

The Net Agent OTA sales reported that at the Queenstown Airport, the average rate decreased 1%.  The Gross Agent OTA and the direct sales channels showed decreases of 18% and 6%, respectively. 

The average rate for a three-day rental decreased 9%, while the average rate for seven-day and 14-day rentals decreased 7% and 6%, respectively. The average rate for SUVs decreased 9%. All other categories showed a decrease between 3% and 7%

During this winter season, average rental rates for seven- and 14-day durations are expected to increase, as are rates for the smaller vehicle categories.

Year to date analysis shows November 2019 was the weakest month compared to the previous year, with average rates dropping between 4% and 10% across all three locations.

Margin Fuel predicts rates will start to build again due to the holiday season, but will dip again in February.