Australia Market Overview

Australia Inbound Tourism Snapshot

Inbound visitation from Australia and New Zealand is one of the shining stars for the Travel South USA region, posting a 51% increase in visitors in 2015 vs. 2014. Aussies seek a mix of outdoor adventures, road trips, and urban experiences, perfect for the Travel South USA region. Both Qantas and Air New Zealand have non-stop service to Texas, DFW, and Houston with codeshare options on American Airlines and British Airways. These flights, along with connecting service on Delta Air Lines, give the southern region a great opportunity to grab even more market share.

Fueled by Chinese demand for primary resources, Australia’s economy continues to be strong. Unemployment remains low (5.6%) as does inflation (1.5%) and the economy has shown ten (10) consecutive years of growth. Australia has a small population of 22.7 million, but 6.8 million of those take overseas trips, equating to 31 overseas trips for every 100 residents; everyone travels – youth, families, and baby boomers.
 
Australians travel all year round to the U.S. but the most popular months are between April – September.  Over 60% of Australian visitors are repeat travelers to the USA, which bodes well for capturing market share.  According to the Brand USA Market profile, the five (5) top motivators for Aussies choosing long-haul destinations are local lifestyle, cultural/historical attractions, beaches/seaside attractions, shopping, and dining/culinary.  They view the USA as diverse, energetic, friendly, adventurous, and trendy.
 
In 2017, the exchange rate will likely continue to widen as the U.S. dollar continues to strengthen. The exchange rate's impact will be felt mostly on spending. Modest growth is expected in 2016 with an uptick into 2017.  Growth will be driven more by total cost of travel as airfares will likely remain reasonable to help offset the exchange rate to the U.S. dollar.

Overall, economic concerns will drive a more conservative outlook by consumers and businesses. Economic growth will improve as the economy adjusts and becomes less reliant on commodities/resource sector and more on household consumption. Economic policies should keep an economic downturn at bay.  The housing market is still a concern but less so going forward.  

Highlighting semi-free experiences (outdoors, museums, sightseeing, small towns, etc.) is likely going to be a key driver.  Special interests (music, culture, etc.) will pull in those that still have the income but looking or a less luxury-oriented trip.  Value  packaging and working with the travel trade will need to be key parts of the strategy to attract visitors.
 
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RESEARCH

Travel Profile -  Australia

 Travel South USA Region
 (12 state region)
2015 2014
(revised)
Yr/Yr % Change
 Number of Visitors 192,000 128,000 +50%
 Visitor Spending $273,715,200 $150,750,000 +81.5%
 Travel South Share of Market 13.3% 9.8% +35.7%
 Sources:  US Department of Commerce, Travel Market Insights

INTERESTING TRENDS

  • Consumers are opting for more event-focused holidays: attending specific music, sporting, or cultural events
  • Consumers will pay for luxury products which are comparatively less expensive than in Australia; however, as the U.S. dollar increases, value for the money will be of additional importance
  • Consumers look for authentic travel experiences and wish to discover lesser-known destinations
  • Consumers have increased demand for a variety of accommodations such as boutique hotels

MARKETING & SALES ACTIVITIES

Travel South USA has a year-round investment in research, travel trade strategies, along with earned, owned and paid media to amplify our efforts in-market. Commissioned research along with monthly trend reports and a comprehensive tour operator analysis is provided to state tourism offices participating in the Global Partner Program. Travel Trade strategies and tactics include sales missions, trade shows, workshops/training regional road shows, cooperative event marketing with Brand USA and recruitment of tour operators buyers to International Showcase & Super FAMs. Earned, owned and paid media strategies and tactics include hosting visiting journalists, FAMs, social media campaigns, and cooperative advertising efforts B2C.
Research

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 Monthly Reporting
 Tour Operator Brochure Analysis
 Tourism Economics & Travel Market Insights Commissioned Studies
 

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 Visit USA Roadshows Cairns & Townsville October 25 & 25, 2016
 International Showcase & Super FAMs Atlanta, GA & Region November 28-December 3, 2016
 Visit USA Expo Brisbane, Melbourne, & Sydney February 2017
 TSUSA Bourbon, Blues & BBQ Sales Mission Auckland, Sydney, & Brisbane June 19-24, 2017
 International Showcase & Super FAMs Charleston, SC & Region November 27 - December 2, 2017
 

 small_EarnedMedia.pngEarned, Owned, & Paid Media

 www.VisittheUSA.com/TravelSouth
 Distribution of Travel South USA Inspiration Guide
 Produced by Brand USA / Miles Media
 Social Media Campaigns
 Co-op Marketing with Key Tour Operators