Both Jetstar and Air New Zealand use dynamic pricing. Photo: Supplied/ Air NZ
Whether you were in the mood for Coldplay, Pearl Jam, Crowded House or the Queenstown marathon, there was no shortage of gigs and events to get to in November.
But it appears anyone trying to fly to one might have had to shell out a bit more than normal - and Consumer NZ says it is further proof there is a need for a market study into domestic aviation.
Stats NZ data shows domestic airfares were up 10.8 percent in November compared to October, the biggest increase since July 2023.
Domestic accommodation prices also rose, up 6.9 percent over the month.
"The higher prices for domestic flights coincided with performances by several global artists around New Zealand," Stats NZ prices and deflators spokesperson Nicola Growden said.
"We also saw increased domestic hotel prices, so the cost of exploring New Zealand has become more expensive."
International airfares and international accommodation prices decreased 2.7 percent and 4.6 percent respectively.
Consumer NZ spokesperson Vanessa Pratley said both Jetstar and Air New Zealand used dynamic pricing, which could mean fares were higher during busy periods.
"We think it is evidence that dynamic pricing for better or worse is taking advantage of consumer behaviour. The big question is whether or not this is fair, we just don't think it is because the way it's applied isn't transparent.
"This is why we're calling for market study ultimately is because we don't know how these algorithms are used or calibrated."
She said it was compelling that Stats NZ had made the link.
"Despite digging into it for a while and finding it can increase prices by up to four times as much, we really don't know how they work. It's really hard for a consumer who wants to make an informed choice about price to do that when they don't know how the pricing works."
Air New Zealand general manager, domestic, Scott Carr said the airline had experienced one of its highest-demand months in November.
"This surge in demand saw lower-priced seats sell out faster than usual, resulting in limited availability of lower fares for those booking closer to departure.
"During periods of high demand, we acknowledge fares can be high. This helps ensure seats remain available for those needing to book last-minute or urgent travel."
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