Market Trends

Last Updated on: 25 November 2013

Germany has been the success story of Europe over the past few years.  Numbers have been steady throughout the period since the global financial crisis and we've seen growth month on month, particularly in the Youth sector, as an increasing number of young Germans have chosen to travel since the school leaving age was reduced. We are also seeing growth in the 30-40 year old segment, which has always been very strong in areas such as campervans and long-stay business.

Growth has also continued from the German market across the winter months.  While numbers are small for this traditional summer-focussed market they reflect the efforts that have gone into the trade beginning to treat New Zealand as a year-round destination.

We are taking a pan-European approach to two big sectors: Youth and Premium.  We are looking at the Youth opportunity not only from the UK and Germany, where we have historically been strong, but also more broadly across France, Scandinavia and other parts of Europe. This also involves working strongly in Australia, because a number of youth travellers go to Australia to work before considering a trip across the Tasman. Social media marketing is particularly important here. 

In the Premium sector we are focussed on the US, UK and Germanic Europe, as well as Russia and the Middle East, where we believe there is a sizeable pool of Premium travellers. We have also branched into areas, such as the Monaco Boat Show, where we can target super yacht owners.


The overall German economy remains steady, thanks to the continued robustness of the domestic economy. A period of marked economic weakness is, at present, unlikely. In fact, development of the real economy in Germany is remarkably resilient.

Industry is benefiting from renewed investment activity, which is expected to continue thanks to strong domestic and foreign demand for German products.

The economic recovery is also having an increasingly positive impact on the labour market. Unemployment is continuing its downward trend and a more buoyant job market will help to ensure that consumer spending also grows over the year.

(Source: Federal Ministry of Economics and Technology).

Key Indicators

Sources: (GDP Growth) (Exchange rates)

Exchange Rate vs NZD EUR1 = NZD1.58262 (March 2014)
Expected GDP Growth +0.7% (2012 est.)

Outbound Travel

Airlines and operators continue to report strong interest and enquiries for travel to New Zealand, though the exchange rate is negatively impacting on this.

The Euro declining against the New Zealand dollar creates a real issue for pricing and makes New Zealand relatively more expensive than other long-haul destinations. The same situation equally applies to Australia.