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