As of this morning, the government’s $1.2 billion tourism stimulus package has kicked in, offering 800,000 half-price flights to popular tourist spots across the country.
According to RMIT associate professor Chrystal Zhang, the stimulus package may vary significantly, ranging from just above $100 to over $500, one way, as airlines look to maximise the margin on each seat.
“Likely, only a limited number of half-price fares will be available for travel in the immediate few weeks after they go on sale, as airlines have justified grounds to optimise revenue,” Ms Zhang said.
Travellers are said to have the best chance of getting a cheaper fare if they travel later in the eligible time frame (July, August and September), but avoid school holidays and weekends.
“Bargain hunters should look at routes like Darwin to Cairns, Adelaide to Gold Coast and Avalon to Gold Coast, with one-way fares likely to drop $50 to $80,” Ms Zhang said.
Her RMIT colleague, Dr James Gilchrist Steward, doesn’t believe the airlines will move to inflate their prices, with the ACCC said to keep a watchful eye.
However, with the end of JobKeeper coming at the same time as these cheap airfares, there’s a possibility accommodation providers and tourism operators may increase their pricing.
“The bigger question here is whether day trips, equipment hire and food and beverage suddenly get more expensive as tourism operators are desperate, especially as autumn and winter can be quiet at the best of times. Worst-case scenario is a $4 beer could cost $12,” Dr Gilchrist Steward said.
Moreover, the most recent COVID-19 outbreak has echoed that holidays are in fact a lot more complicated given the risk of border closures.
“Every airline, accommodation and tourism operator have their own terms and conditions – meaning if there’s a lockdown or similar, consumers must unravel multiple contracts for one holiday.
“The constant threat of border closures, like we are seeing with the Brisbane outbreak, may result in contractual frustration – where the contract can’t be completed as it’s out of everyone’s control,” said Dr Gilchrist Steward.
The current government-nominated routes include the Gold Coast, the Sunshine Coast, Carins, the Whitsundays and the Mackay region in Queensland.
Also on the map are Uluru and Alice Springs in the Northern Territory, the Tasmanian towns of Launceston, Devonport and Burnie, WA’s Broome, Avalon near Melbourne, Merimbula in NSW and SA’s Kangaroo Island.
