ExportReadyfor’ InboundTourism - Coffs Coast...InboundTourism’Trends •...
Transcript of ExportReadyfor’ InboundTourism - Coffs Coast...InboundTourism’Trends •...
Export Ready for Inbound Tourism
Essen6al Knowledge for Success in Interna6onal Markets
Agenda
• Australia’s Interna.onal Markets • Focus Market – Singapore • Inbound Tourism Trends • Costs and Benefits • Interna.onal Travel Distribu.on • Structuring Your Rates • Doing business successfully in interna.onal markets
Australia’s Interna6onal Markets
Expenditure Forecasts
• The Tourism Forecas.ng CommiFee (March 2012) forecasts that interna.onal overnight visitor expenditure will almost equal domes.c overnight visitor expenditure by 2020
Interna6onal Visitors to The North Coast (YE Dec 13)
Interna6onal Visitors to The North Coast (YE Mar 13)
Which Markets?
• The majority of interna.onal visitors to North Coast come from the United Kingdom (23.5%) and New Zealand (10%), Germany (10%)
• China and other Asian markets are s.ll rela.vely small numbers, but market development work is underway
• Increased air capacity into Gold Coast Interna.onal Airport, BNE and SYD through Air Asia and Scoot Airlines plus Chinese carriers (Sichuan, China Southern, Air China, China Eastern) will drive organic growth
• Arrivals from China to Australia increased by 14% to 697,000 in the year to Mar14, making it Australia’s second largest inbound market behind New Zealand and ahead of the United Kingdom and the USA • It is the number one market for interna.onal trip expenditure, accoun.ng for 17%
Focus Market -‐ Singapore
Why Singapore?
• We are currently in a 'perfect storm' of market responsiveness, frequent and low priced flight capacity and alignment of regional, state and na.onal marke.ng strategies around self-‐drive experiences and food and wine in the South East Asian market. Singaporeans have been coming to Australia for decades, and are a core market for Australia's inbound tourism industry. Singapore is Australia's fich largest inbound source market with over 306,000 visitors in the year ending March 2014, growth of 13% over the previous year.
Market Snapshot -‐ Singapore
• 84% repeat visitors • 71% of total arrivals are for
leisure
• 25-‐39 years largest demographic
• $3,549 average spend • 17 nights average stay • Apr-‐Jun and Oct-‐Dec • peak booking period • Jun and Nov-‐Dec • peak travel period
What Do Singaporean Consumers Want?*
• A safe and secure des.na.on
• Interes.ng aFrac.ons to visit
• A des.na.on that offers value for money
• Good food, wine, local cuisine and produce
• Friendly and open ci.zens, local hospitality
*Understanding the Singaporean consumer May 2014
What Does TLPC Offer Them?
• A safe and secure des.na.on
• Interes.ng aFrac.ons to visit
• A des.na.on that offers value for money
• Good food, wine, local cuisine and produce
• Friendly and open ci.zens, local hospitality
Example Crea6ve
Legendary 241 Deals
NCDN Market Strategy
2011-‐12 Research
2012-‐13 Trade missions to Market
2012 –Airline Partnership
2013-‐14 – Trade Rela6onships
2014 – Airline Campaign, Packages
Inbound Tourism Trends
Inbound Tourism Trends
• Consumer-‐driven due to increased access to travel informa.on • Booking lead .mes are becoming shorter and last minute deals are in demand • Shiced focus of customer interac.on and messaging to the individual customer
through personalisa.on • Private rental of homes and apartments • Consumers are increasingly booking components of their i.nerary online; however
the travel distributor mi.gates risk through exper.se and experience par.cularly in long haul markets
• Consumers exposed to more of the world either physically (through travel) or virtually (through travel documentaries and the internet) and have become more percep.ve with a beFer understanding of value for money
• Technology convergence gives instant access to informa.on including flight schedules, check-‐in, loca.on-‐based des.na.on content, virtual tours, peer reviews, user profile preferences
Costs & Benefits
Benefits of Inbound Tourism
• Levels out seasonality • Spreads risk • New distribu.on gives millions of poten.al travellers access to your product
• higher yield (average, 3x more than domes.c travellers per trip)
• Booking lead .mes are usually longer
• Export Market Development Grants
• Meet interes.ng people from different cultures
Costs
• Requires significant investment of .me and money
• Return on Investment takes several years
Interna6onal Travel Distribu6on
Distribu6on Channels
The Long Tail Theory
The Long Tail Theory
What Do Travel Distributors Look For?
• Quality products and experiences • Reliability and efficiency (consistent opera.ng hours and
regular schedules) • High levels of customer service and helpful reserva.ons
staff • Understanding of the cultural needs of different markets • Consistent pricing policies that consider all levels of
distribu.on – rate parity • Reliable communica.ons • Fast and efficient turnaround and response .mes • Clear and easy to understand rates • Compe..ve commission levels
Understanding Cultural Needs
Understanding Cultural Needs
Structuring Rates
Structuring Rates
Structuring Rates
A balanced distribu6on mix
Try this yourself with the Distribu6on Mix Calculator!
How To Work with Travel Distributors
• Get the price right for the market and compare it with prices offered by your compe.tors
• Build a totally consistent rate schedule
• Guarantee your rates for 1 April to 31 March. Price guarantees may need to be valid for up to 18 months
• Ensure that your price will generate sufficient profitability and turnover
• Develop the rela.onship – don’t think that you will be front of mind for distributors
• Ensure that the validity date and all booking terms and condi.ons are clearly stated on all correspondence related to pricing
• Ensure that you iden.fy any seasonality in your product
• (i.e. high season, low season, and days of opera.on) and clearly iden.fy the corresponding rate altera.ons
• Ensure you know who you have distributed rates to so you can update them
• Be prepared to adjust your offering to meet cultural needs and tastes of markets.
How NOT To Work with Travel Distributors
• Distribute rates intended for wholesalers and inbound operators to retail agents. This will either increase your commission payments or shut out one level of the distribu.on system for your product
• Consider commissions as a ‘discount’ as they are part of the cost of doing business. ‘Intermediaries’ or distributors promote your product and pay costs in selling and packaging your product
• Try to set different rates for local and overseas visitors unless there is a varia.on in the product offering.
• Delay (or worse) ignore inquires or booking requests because you are too busy!
• File their business cards away and never look at them again
Doing business successfully in interna6onal markets
How TLPC can help you a`ract interna6onal visitors
• Investment in a long tem interna.onal marke.ng strategy
• Dedicated interna.onal representa.on
• Distribu.on introduc.ons and referrrals
• Inclusion in TLPC Collateral, famils and suggested i.neraries
• State Government Marke.ng Agreements
• Part of Na.onal Tourism Frameworks (Touring Routes, Na.onal Landscapes, ATEC)
• Objec.ve advice
Doing Business Successfully In Interna6onal Markets
Assess how Export Ready
your business is
Consult your tourism network
Research your markets
Plan your approach
Prepare pricing and collateral
Review Your Export
Readiness
Launch your product!
Assess how Export Ready your business is
• Is your business established in the domes.c market? • Do you have a good level of domes.c distribu.on and do you have a successful domes.c
marke.ng strategy? • Do you offer booking confirma.on online or via email with a 24-‐hour turnaround .me?
• Have you thoroughly researched the interna.onal markets to establish where your product fits?
• Do you clearly understand the differing needs of interna.onal markets compared with domes.c markets?
• Do you understand the concept of commissions and neF rates and offer commissionable rate to trade partners such as ITOs, OTAs, wholesalers and retail travel agents?
• Do you have an ac.ve quality assurance program to ensure your product maintains a high standard
Consult your tourism network • If you are working towards becoming export ready, it’s a good idea to talk
to your tourism network about it. This includes your local tourism manager or tourism associa.on, regional tourism organisa.on and Des.na.on NSW.
• Regional tourism organisa.on contacts (North Coast Des.na.on Network)
• You can seek advice and feedback on your progress from your tourism network and discuss opportuni.es to work together
Research your markets • Make note of your exis.ng customers – are there any interna.onal travellers
already visi.ng? Where are they from? • Review the DNSW & TA interna.onal market profiles and market intelligence
updates, which detail all major and emerging inbound markets for NSW
• Read about pricing and distribu.ng your tourism product and make sure you understand what ITOs want so you can deliver to their expecta.ons.
• Consider how you can refine your product offering to meet the needs of your target market.
• Decide how your business will handle bookings from trade partners. Look at what systems you will use how, you will manage responding to bookings within a 24-‐hour .meframe, prepayment or credit terms, are your staff trained to handle travel trade bookings.
Plan your approach Plan how interna.onal promo.on will fit into your current marke.ng mix and
ensure you budget for new ac.vi.es. These may include :
– sales calls – aFending trade events – hos.ng trade familiarisa.ons – conduc.ng sales staff training – aFending conferences and industry associa.on memberships&
partnerships such as the Legendary Pacific Coast (TLPC), Australian Tourism Export Council (ATEC) Tourism Industry Council (TIC NSW)
Prepare pricing and collateral • Create a sales kit to provide to trade partners, including fact sheets for
each of your products (separate factsheets for FIT, groups, corporate)
• May include brochure, a map, and images or footage on DVD or USB
• Ensure your product pricing structure can accommodate commissions of up to 30%
• Create separate rate sheets that detail your pricing for retail, wholesale, OTA and ITO partners
• Child and concession rates, minimum and maximum numbers, seasonal or variable rates, surcharges or blackout dates
• Create a wriFen copy of your terms of trade, which details how you are prepared to work with your trade partners (cancella.on policy, blackout dates, payment terms (including credit terms and applica.on details), booking deadlines and payment details)
•
Review and Launch! • TLPC newsleFers and DNSW Product updates to trade will feature news of
your launch into the interna.onal market
• AFend a Regional Product Showcase to introduce your product to Des.na.on NSW staff
• TLPC ITO Roadshow
• Interna.onal trade events and missions to market for new product • Tour Connect – online exchange and contract management resource
• Trade and media famils programs
Managing Contracts
Managing Contracts
Reference Resources
• Des.na.on NSW -‐Targe.ng Interna.onal Visitors www.des.na.onnsw.com.au
• Tourism Australia -‐ Planning for inbound success www.tourism.australia.com
• www.tourconnect.com
• Prepared by Surfer Rosa Consul.ng www.surferrosa.com.au 2014
@fighborthereef facebook.com/FightForTheReef www.surferrosa.com.au/latest-‐news