Wellington, New Zealand: KiwiRail’s Tourism Division Surpasses New Expectations with Premium Rail Experiences

Published on May 8, 2025

The remarkable success of KiwiRail’s tourism initiatives under Great Journeys New Zealand has set a benchmark for rail-based travel globally. As passengers worldwide become more environmentally conscious and seek sustainable travel alternatives, KiwiRail’s model could encourage other international rail operators to replicate or adapt similar strategies. The emphasis on premium experiences over high passenger volumes may significantly influence how rail networks internationally prioritize customer experiences, sustainability, and revenue generation in the coming years. Consequently, travelers globally may see enhanced offerings, better environmental accountability, and heightened travel standards.

Global Traveler Preferences Shift toward Sustainable Travel

KiwiRail’s tourism division’s recent successes suggest a broader, evolving preference among global travelers toward sustainability and premium experiences. The popularity of KiwiRail’s new products, especially among international and domestic tourists looking for low-carbon footprint travel options, indicates a significant shift in traveler expectations. Passengers globally are likely to seek similar experiences elsewhere, influencing how travel companies around the world shape their offerings.

Transformative Impacts on Global Travel Industry

KiwiRail’s positive experiences have implications far beyond New Zealand’s borders. Its innovative premium offerings and focused approach on regional, sustainable, and premium travel demonstrate to the global travel industry that revenue growth can be achieved through strategic, experience-focused tourism rather than solely relying on volume-based business models. This strategic pivot could redefine standards in tourism products worldwide, prompting a reevaluation of product development, pricing strategies, and marketing approaches internationally.

Premium and Sustainable Experiences Shaping Industry Trends

Great Journeys New Zealand has specifically emphasized creating premium and unique experiences rather than prioritizing high passenger volume, a strategy that proved highly successful post-pandemic. This shift toward premium products, including multi-day guided tours, self-guided packages, and specialized event offerings like the Scenic Plus dining experience, has led to increased revenue despite passenger numbers being lower than pre-pandemic levels. The industry globally might adopt this premiumization trend, adjusting their models to emphasize quality, exclusivity, and environmental responsibility.

• Rail operators globally may increasingly focus on premium over volume.
• Sustainability becomes a key selling point for travel operators internationally.

Positive Revenue Outcomes despite Lower Passenger Volumes

KiwiRail has transported approximately 190,000 passengers this financial year, which amounts to around 82 percent of its pre-Covid numbers. Despite the lower passenger volume, revenue has notably increased. According to Executive GM Passenger Tracey Goodall, this growth resulted from the strategic decision to move away from simply transporting large numbers of passengers toward delivering high-quality, memorable visitor experiences.

Introduction of New Premium and Regionally-Focused Rail Packages

Great Journeys New Zealand introduced several innovative tourism products post-Covid, which included multi-day fully guided rail tours, self-guided rail packages, specialized rail event packages, and the Scenic Plus premium dining experience. These new offerings exceeded sales projections, capturing the interest of both domestic and international tourists. Travelers showed a keen interest in regionally focused short-break rail packages, intended to showcase less-visited destinations in New Zealand. Such packages have already generated revenues exceeding initial expectations and are rapidly growing in popularity.

Recognition and Popularity of Unique Rail Experiences

Among the standout offerings was the Signature ‘Up Close’ tour, a premium 17-day experience priced at $15,000 per passenger. This tour notably earned international acclaim, named by the New York Times last year as the fourth-best travel experience globally. Its significant recognition underlines the rising international appeal of premium rail travel experiences and positions KiwiRail prominently within global travel discussions.

High Demand for Limited Edition and Special Events

Other specialty rail experiences launched by KiwiRail have also experienced remarkable demand, highlighting consumer enthusiasm for unique, limited-availability rail journeys. The Southerner Returns, a unique rail journey connecting Christchurch and Dunedin, experienced overwhelming demand with packages fully sold out across all four departure dates. Similarly, the newly launched Matariki evening experience train to Kaikōura also quickly sold out, demonstrating strong customer enthusiasm for special event-focused rail experiences.

Focus on Environmentally Conscious Travel

Great Journeys New Zealand strategically targeted travelers who were increasingly mindful of their carbon footprints. Tracey Goodall emphasized that both international and domestic tourists showed significant interest in rail as a sustainable alternative to other travel modes. By explicitly marketing their rail packages as eco-friendly travel options, KiwiRail effectively captured a growing segment of environmentally conscious travelers, reflecting a global shift towards responsible travel.

Strategic Shift toward Premiumization and Experiential Offerings

Executive GM Passenger Tracey Goodall highlighted the deliberate strategic shift adopted by KiwiRail, moving from high passenger volumes to premium, experiential tourism products. Goodall explained that this transition had been critical to surpassing revenue expectations despite not yet returning to pre-Covid passenger numbers. The successful implementation of innovative products such as Scenic Plus dining and multi-day guided tours significantly boosted KiwiRail’s tourism division’s overall performance.

KiwiRail’s Tourism Division Exceeding Expectations with New Offerings

KiwiRail’s Great Journeys New Zealand tourism division was reported to be surpassing initial sales forecasts with its newly introduced premium tourism experiences. Through its innovative offerings, the company successfully attracted significant traveler interest, achieving robust revenue growth despite reduced passenger numbers compared to pre-pandemic levels. The strategy focusing on providing high-value experiences, including regional rail journeys and premium dining services, was directly credited with the positive financial outcomes.

According to Goodall, it was immensely gratifying to see a significant number of travelers embracing rail as a unique way to explore New Zealand. This success clearly demonstrated the effectiveness of the company’s new strategic direction, confirming that prioritizing high-quality experiences could yield strong financial results and enhance KiwiRail’s brand reputation internationally.