International Market Briefing 21 November 2006

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International Market Briefing21 November 2006

• Kate Strange
• Regional Director New Zealand

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Topics for discussion

• New Zealand arrivals
• NSW Market Share
• Market trends trade and consumer
• NZ Industry structure
• Tasman update
• Tourism NSW marketing strategies campaigns
• Opportunities

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New Zealand Arrivals
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NZ Market Intelligence Trends

• Changes in last 3 years
• Introduction of low cost carriers
• Airlines cut commission on Tasman
• Less airline marketing dollars for Australia
  campaigns
• Increased online purchasing
• Changes in last 6 months
• Air NZ has aggressively targeted consumers
  stolen market share from retail groups
• Air NZ dominates the online booking space
• NZ consumers have adopted a modular approach to
  booking
• Retail/Wholesale forced to break up holiday
  packages

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States/Territory Market Share of NZ Visitors

• Gateway States remain dominant largely due
  to air capacity
• Non Gateway States have some direct flights but
  airfares are more expensive than East Coast
  Gateway States
• NSW market share of trips has fallen slightly
  since March 2005 but number of visitor nights is
  holding up well

Source IVS, June Quarter 2006
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New Zealand Economic Boom is over
Source Tourism Australia BDA Q1 06 NZ Tracker
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Changing Consumer Booking Trends

• Booking patterns have changed ? modular bookings
• Use a variety of booking channels
• 14 buying traditional packages
• 86 purchase modular itineraries
• Book online for pt to pt and low end cheap
  packages
• Increasing using accomm websites eg wotif.com,
  lastminute.com etc

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New Zealand booking channels
Note Multiple Direct When consumers book
direct with multiple suppliers. Eg book airfares
with airline, accom with hotel, car with car
rental etc. Research stats from BDA Tracker
Research July 2005
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Internet Travel Site Usage
Source Hitwise Website Traffic, Sept 2006
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New Zealand Trade Distribution Trends

• Ongoing rationalisation
• Continued vertical integration between wholesale
  and retail
• Wholesalers are still volume focused
• Retailers loosing market share to online bookings
• Retailers focusing on CRM strategies adding
  value
• Less airline marketing funds to promote Australia
  ( Syd/NSW)

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NZ Industry Structure
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Tasman update

• Air NZ and QF enjoy dominant market share 64
• ACCC have release draft decision against TNA
  agreement
• TNA would fundamentally change the competitive
  environment on the Tasman
• NZ Ministry of Transport TNA decision due early
  Jan 07
• If TNA is not approved, likely Air NZ and QF will
  have to reduce excess capacity on Tasman

Source Department of Immigration and
Multicultural and Indigenous Affairs
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Tourism NSW Marketing Strategies

• Target Market
• Experience Seekers
• Aged 30 60 years, HHI 60,000
• They are experienced travellers who have visited
  Sydney at least once before and they are
  interested in holidays in Australia (preferrers)
• Consumers who are most likely to spend more
• NZ is a high repeat (mature) market for Sydney
• Less mature market to regional New South Wales

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Tourism NSW Marketing Strategies
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Consumer Campaigns

• Air New Zealand Sydney Campaign,June 06
• 4 Wholesaler partners Air New Zealand
• Nationwide Newspaper Banner advertising
• Total spend AU 120K, TNSW AU 35K
• Results 2500 incremental pax
• Boosted travel July Oct 06
• ROI 9 1

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Consumer Campaigns

• Product Development Northern Rivers
• Tactical campaign with Infinity/Flight Centre
• First ever stand alone campaign for Northern NSW
• Nationwide newspaper advertising
• Developed 12 pg brochure
• Wholesale training

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Consumer Campaigns

• Sydney Events Priscilla
• Joint campaign with Qantas and Priscilla
• Showbiz
• Magazine and newspaper advertising
• 15 sec TVC, Sept/Oct
• 4 Wholesale partners
• Trade famil x 10 pax
• Media famil x 6 pax, EAV AU55,000
• Results 434 packages sold by 20 Oct

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Consumer Campaigns

• New South Wales Self Drive Touring Campaign
• Co-op campaign with Travelplan/HOT and Air NZ
• Direct Mail to 25,000 top HOT clients
• 12 page brochure for Self Drive holiday ideas
• Packages included 2 nights Sydney 3,5 7 night
  add-ons
• Results 242 pax booked in first 6 months of
  campaign

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Trade Marketing Activities

• OZ Talk New Zealand
• NSW RTO Roadshow (170 agents AKL, WTG,CHC)
• Wholesaler training quarterly
• Agent FIT Famil Brochure
• Monthly e-Newsletter to trade
• Trade Famils 5 famils in 2006.07
• Aussie Specialist Program

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How can we assist you Opportunities

• OZ Talk 2007 (15 17 March 2007, Auckland)
• Co-operative campaigns
• Print and TV Media visits
• Consumer promotions / prize competitions
• Trade famils (including Aussie Specialist Mega
  Famil Jun 07)
• Agent FIT famil program
• Monthly Trade Media e-newsletter blast
• Quarterly wholesale training
• New Product Workshop 2007
• Assistance with sales calls to New Zealand
• Build / maintain relationships with NZ trade

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Future Marketing Activities