Activating travel to Regional Victoria. Vic Tourism Conference, Geelong July

Transcription

1 Activating travel to Regional Victoria Vic Tourism Conference, Geelong July

2 Long-term strategy for regional Victoria Position Victoria for growth in interstate markets, by raising awareness of regional experiences and destinations in close proximity to Melbourne Regional campaigns launched to position Victoria 2003: Yarra Valley food and wine campaign 2009: Great Ocean Walk nature-based campaign 2009: Daylesford spa and wellbeing (nearing completion) No recent major campaign activity targeting Melburnians

3 Re-engaging Melburnians

4 Our challenge Intrastate is the most important market to regional Victoria: 84% of domestic visitors to regional Victoria are from within the state 9.6 million intrastate overnight visitors contribute $3.3 billion in overnight expenditure Visitation and yield have been declining Nature-based/distant regions most affected Desire to understand issues driving the decline, to formulate the development of an intrastate strategy 4 National Visitor Survey year ending Dec 2013, International Visitor Survey year ending September 2013

5 Research undertaken Desktop research using quantitative data to understand key trends in consumer travel behaviours Qualitative research undertaken to Understand current knowledge and perceptions Strengths and weaknesses Key drivers and barriers for regional Victoria Insights to support the development of an intrastate marketing strategy

6 Key social trends 24/7 ALWAYS ON MAXIMISATION It feels like there is always something to do, even free time is hectic these days There are so many options, its difficult to know what to do with your time, what is the best use of your time, so I try and cramp everything in I ve only got so much time to do what I want, so I want to get the most out of it. Life is too short to not experience everything you can possibly cram in. 6

7 Key social trends SLOW MOVEMENT SWITCHING OFF PERSONAL SUSTAINABILITY I want to return to the way things were. Where we had time to think and appreciate the simple things in life There is a constant pressure to keep up with everybody else and participate in everything. I often just switch off the electronics and take a break from all of the social pressures and expectations Often it is just the time to recharge, rejuvenate, get back to normal to ensure you keep your sanity. But it is often hard to find time to yourself

8 Intrastate trips (millions) Research insights 4.5 Intrastate travel to regional destinations Dec 99 Jun 00 Dec 00 Jun 01 Dec 01 Jun 02 Dec 02 Jun 03 Dec 03 Jun 04 Dec 04 Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Melbournians to Surrounds Regional Victorians to Surrounds Melbournians to Distant Regions Regional Victorians to Distant Regions National Visitor Survey Year ending June 2013

9 Research insights Melbourne is key Decline driven by Melburnians Growing population presents an opportunity to build new relationships 90,000 new residents each year to the State Melbourne target for other destinations need to protect Large migrant community with no relationship with regional Victoria Opportunity to re-engage Melburnians with regional destinations and experiences

10 Regional Victoria an important source market Represents a large population base across the State Already engaged will and do travel within the state 2 hour barrier not an issue opportunity for regions further from Melbourne

11 Supply side issues Lack of quality & depth of product (needs differ by lifestage) that people will build travel around Accommodation (range, variable quality, affordability in peak periods) Experiences (iconic attractions, activities outside of peak periods) Service quality is perceived as poor compared to the overseas offer High perceived cost for the experience provides poor perceived value

12 Perceptions Lack of knowledge of regional Victoria is the key issue Awareness and knowledge void filled with generic images of dusty country Australia Melbourne Surrounds regions leverage Melbourne = advantage Long absence of any state-wide campaign targeting Victorians Opportunity to brand regional Victoria and educate Victorians on what the state offers 12

13 No knowledge = no motivation High familiarity with destinations closer to Melbourne Perceptions of Melbourne extend into these destinations??? Honestly, the reason why (I don t look further afield) is that I ve got little idea what is out there- and for me, no knowledge equals no motivation, there is plenty of other things I can do that I do know and like???

14 What people said about Melbourne s surrounds There is so much to do, so many things to see you can really pack a day or two into going to some of these areas There s a lot of things out there and a lot to do, but it also feels like in recent years everyone else has cottoned on to that as well everything has a queue or waiting list these days They ve got a lot of the polish of the city, the style, the service - but have kept the country warmth, a great balance to strike It really highlights the best of Victoria s food and wine being able to get it fresh from the farm but also bring the best chefs from the city to make it into something special So much diversity all within a short drive you can be on the beach, up in the hills, in the valleys with the wine and gourmet foods or up in gold rush country with the beautiful old buildings and history everything at your doorstep

15 What people said about distant regions The real country no touristy, gimmicky places, just real country towns that you can spend some time in It s still very natural, very real both the people and the nature It s where you can lose yourself for a few days, forget about all the stuff at home, at work wherever It s a great unknown to me it could be excellent but I m not too sure what to expect I expect it to be flat, dry, a bit boring to be honest not really geared up for people wanting something to do

16 Starting point influences travel choices Getting out of the city is a key barrier Weekend city traffic was a key reason not to head out of the city (particularly those living in central and SE Melbourne) It is too long and often stressful to escape Melbourne. Particularly true for weekend day trips, and long weekends

17 Starting point influences travel choices People avoid cross city travel Particularly true for more impulsive weekends day trips and long weekends than more planned, longer duration travel/breaks

18 Starting point influences travel choices Regional Victorians are more willing to hit the road Unlike in the city, there is no perceived issue in hitting the road can be on the open road in a matter of minutes Those who have grown up in regional towns travel distances regularly, driving a few hours is no big deal for many

19 Kids are a key consideration - differs by age Baby Toddler Primary School Secondary School Post Secondary

20 Baby Packing and planning required No specific travel needs and often no additional cost Travel still focused on the adults, Biggest impact: working activities around feeding / sleeping routine

21 Toddler Packing and planning require significant attention at all times Need to be entertained Travel is a balance of activities that are appealing for adults and entertain / tire out kids

22 Primary school More self sufficient Take part in more whole of family activities, however still need to be entertained. Timing is important: try not to disrupt school Although, many parents believe that travel is just as educational as school at this age and are happy to take kids out for 1-2 weeks

23 Secondary school Kids want input into decisions travel decisions become more of a negotiation amongst family than a parent s decision. Timing is important: won t take kids out of school, and won t disrupt study Summer holidays are seen as the only free time

24 Post Secondary (children over 18) 1. Families still holiday together use this as a time for re-connection, keeping the family bond, and 2. Families begin to holiday separately - parents holidaying by themselves again

25 Drivers and barriers to Regional Victoria SINKS/DINKS + - New and different places, experiences, people/cultures Seeking immersion - the more authentic the better It needs to be easy Lack of knowledge Risk of wasting time on a bad experience Other destinations higher on their to-do list Social cache, credibility, Bragability, FOMO

26 Drivers and barriers to Regional Victoria Young families + - Destinations within 1-2 hours, maximise free time Indulgent adult escapes Quality and range of activities /experiences for adults and kids Affordable experiences available and accessible in peak season Time, financial and family constraints. Affordable, appropriate accommodation Difficulty of getting organised Needs to be enough to keep the kids entertained

27 Drivers and barriers to Regional Victoria Older families + - Availability/accessibility of previous accom. (or similar) holiday habits Range of quality experiences for adults and kids, either individually or together Affordable experiences available and accessible in peak season Timing around other commitments school/ extracurricular/ work Balance of activities for everyone Affordable and appropriate accommodation

28 Drivers and barriers to Regional Victoria Midlife households + - New places, experiences, people experiences outside the everyday Indulgent options for adult escapes quality is important Lacks the sophistication of the city and the excitement of overseas ticking clock on more exotic locations Time commitments still working Ability to relax, reflect and connect

29 Drivers and barriers to Regional Victoria Retirees + - Hidden secrets, off the beaten track genuine, authentic, not touristy experiences Physical and financial limitations however these are barriers to travel generally Destinations that offer a range of destinations within reach of a base camp Cost/ affordability of accommodation and activities/ experiences to allow for longer trips

30 What they said I ve got the time and the money to be able to head overseas for a real adventure that isn t going to last forever Victoria is my backyard I can do it any time SINKS / DINKS It s a great place to get away and do very little just a different background, away from the daily stresses where you can enjoy time with your kids Young families I can finally get out there and see what I haven t been able to see there are plenty of places on the map I d like to see Mid-life Households I do love that I can go there and I m coming back to something I know, but also I want it to progress and improve as well to reflect what we want from a holiday Older families It s as easy as packing the car, hitting the road and you are out there, the world is your oyster - Retirees

31 Key consumer considerations In summary Long absence of any state-wide campaign targeting Victorians Lack of knowledge = no motivation to travel = no connection Travel has to fulfil a number of needs and appeal to the entire travel party

32 Make it easy THINK KISS PRINCIPLE ON STEROIDS HERE. Too much choice and information makes decisions difficult consumers need easy to find, curated content Often not aware of specific activities or how best to engage with the region

33 The current situation Increased options for Melburnians Melburnians attractive target for key competitors Low cost carriers = rise in interstate & international Strong $AUD Out of category competition (entertainment, renovations, school fees, sport) Decline of the traditional family holiday (changing family unit = increase in short break travel, increase in daytrips) Melbourne growing by 90,000 residents per year - new residents with no relationship/ habit with regional Victoria

34 Our priorities Develop intrastate marketing strategy to address both demand and supply side issues Clearly identify state-wide and regional roles (TV, RTBs, industry) Re-establish an emotional connection with Victorians Educate Victorians on the wonders of their own backyard and convert interest to visitation Revisit our funding strategy for regional events to use them to build connections and drive conversion to regional Victoria

35 Next steps Finalise our intrastate marketing strategy in progress Funding outcomes determined over next 4 years; align activities Clearly define what space regional Victoria can own in the minds of consumers.here and interstate Lack of knowledge and awareness key issue NO TVC WILL BE THE SILVER BULLET Reignite the romance with a driving holiday