Export Ready for Inbound Tourism. Essen6al Knowledge for Success in Interna6onal Markets
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1 Export Ready for Inbound Tourism Essen6al Knowledge for Success in Interna6onal Markets
2 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
3 Australia s Interna6onal Markets
4 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
5 Interna6onal Visitors to The North Coast (YE Dec 13)
6 Interna6onal Visitors to The North Coast (YE Mar 13)
7 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%
8 Focus Market - Singapore
9 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.
10 Market Snapshot - Singapore 84% repeat visitors 71% of total arrivals are for leisure 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
11 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
12 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
13 Example Crea6ve
14 Legendary 241 Deals
15 NCDN Market Strategy 2012 Airline Partnership Trade Rela6onships 2014 Airline Campaign, Packages Research Trade missions to Market
16 Inbound Tourism Trends
17 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
18 Costs & Benefits
19 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
20 Costs Requires significant investment of.me and money Return on Investment takes several years
21 Interna6onal Travel Distribu6on
22 Distribu6on Channels
23 The Long Tail Theory
24 The Long Tail Theory
25 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
26 Understanding Cultural Needs
27 Understanding Cultural Needs
28 Structuring Rates
29 Structuring Rates
30 Structuring Rates
31 A balanced distribu6on mix Try this yourself with the Distribu6on Mix Calculator!
32 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.
33 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
34 Doing business successfully in interna6onal markets
35 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
36 Doing Business Successfully In Interna6onal Markets Assess how Export Ready your business is Review Your Export Readiness Launch your product! Consult your tourism network Prepare pricing and collateral Research your markets Plan your approach
37 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 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
38 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
39 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.
40 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)
41 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)
42 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
43 Managing Contracts
44 Managing Contracts
45 Reference Resources Des.na.on NSW - Targe.ng Interna.onal Visitors Tourism Australia - Planning for inbound success Prepared by Surfer Rosa Consul.ng
46 @fighborthereef facebook.com/fightforthereef news
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