FRANCE Market Profile. Over $1bn Potential to be worth by ,000. $0.7bn. 7.1m. Overview. Aviation routes from France to Australia 3

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1 Market Profile Overview In 214, France was Australia s 15th largest inbound market for visitor arrivals, 14th largest market for total visitor expenditure and 11th for visitor nights. Aviation routes from France to Australia 3 London Toulouse Paris Lyon Nice Over $1bn Potential to be worth by , 1 Visitor arrivals (á 7 per cent) Doha Abu Dhabi Dubai Kuala Lumpur Singapore Hong Kong Seoul $.7bn 2 Total spend (â 5 per cent) 7.1m 2 Visitor nights (â 2 per cent) Which airlines 3 do French visitors use to travel to Australia? 4 Airline Emirates 2% 15% 16% 18% 21% Qantas Airways 25% 25% 25% 18% 14% Singapore Airlines 9% 9% 8% 9% 8% Cathay Pacific 7% 7% 7% 8% 7% Etihad 4% 6% 5% 6% 6% Jetstar 7% 6% 7% 5% 6% Malaysia Airlines 2% 3% 6% 5% 4% Others 25% 29% 27% 32% 34% Total 1% 1% 1% 1% 1% Mar-May and Sep-Nov Booking peak period Jul and Oct-Feb Travel peak period 1. Source: Department of Immigration and Border Protection as at year ending December Source: International Visitor Survey, Tourism Research Australia, December 214 quarter 3. Source: CAPA-Centre for Aviation, Tourism Australia analysis 4. Table includes direct and indirect capacity. Source: Department of Immigration and Border Protection Visitor profile 2 HOLIDAY VISITING FRIENDS AND RELATIVES BUSINESS 53,2 arrivals (52%*) 17,7 arrivals (17%*) 1,5 arrivals (1%*) $6,324 spend per trip $3,793 spend per trip $5,84 spend per trip $98 spend per night $119 spend per night $293 spend per night 32% repeat visitors 6% repeat visitors 57% repeat visitors Data refers to an average of * Refers to share of arrivals of respective purpose of visit 1 FRANCE Market Profile 215

2 Market Performance The charts on this page provide a trend overview of visitor arrivals and expenditure by main purpose of visit and also the age demographic split of leisure* visitors and expenditure (based on latest 12 months data). Visitor arrivals Visitor arrivals by main purpose of visit Visitor arrivals (s) , Visitor arrivals (s) Holiday Visiting friends or relatives Business Employment Other Education Visitor expenditure Visitor expenditure by main purpose of visit Total trip spend ($bn) $.7bn Total trip spend (A$s) Holiday Employment Visiting friends or relatives Education Business Other Arrivals by age Expenditure by age yrs 16% 6 yrs & over 11% yrs 13% 6 yrs & over 9% 3 44 yrs 18% 3 44 yrs 16% yrs 55% yrs 62% * Leisure refers to main purpose of visit of holiday and visiting friends and relatives Age profile data refers to an average of Source: Department of Immigration and Border Protection International Visitor Survey, Tourism Research Australia 2 FRANCE Market Profile 215

3 Aviation Landscape The France-Australia routes remains highly competitive with a number of airlines offering a range of different routes and airfares to all Australian cities. French visitors can travel to Australia from a number of French cities including Paris, Lyon and Nice, via hubs in Asia and the Middle East. Further growth is expected in 215 driven by Middle Eastern and North Asian carriers. Growth will also continue to focus on Paris (rather than smaller French cities). In 214, 21 per cent of French visitors to Australia travelled on Emirates, almost double its share five years earlier (13 per cent in 29). The next most utilised airline is Qantas (14 per cent). See chart page 1 for more details. Air France-KLM is the national flag carrier for France and is unlikely to resume services to Australia. Instead the airline works with partners such as China Southern and Etihad through codeshare and interline agreements to fly tourists to Australia. There is a distinct seasonality pattern with French tourists, with peaks during European summer months, particularly around school holidays as well as Australian summer months.»» Low Cost Carriers (LCC) currently operate a moderate 25 per cent share of total capacity out of France, however LCC activity is growing. LCCs are an attractive option for the younger, more price sensitive, French traveller. Jetstar and Air France-KLM operate interline services on the Australia route. Other carriers such as China Southern Airlines, Cathay Pacific Airways, and Korean Air also offer competitive fares attractive to younger French travellers. 3 FRANCE Market Profile 215

4 Consumers under 3 years of age are increasingly using online channels for bookings, including long haul travellers who are visiting for extended periods of time. The online environment plays a key role in France for destination selection and planning. Internet users are seeking the best prices and innovative services. Traditional operators remain important particularly for consumers over 4 years old and for special interest travel such as Honeymoons. system Wholesalers/ Large Agents Commission Level: 15% to 25% There are two major distribution channels for Australian product in the French market: > > wholesalers who sell their products through travel agencies (mainly chains, franchise systems and cooperations, few independents). > > direct sellers who use their own retail offices and partner agencies and online as their distribution channel. Given a large portion of French travellers to Australia are aged under 3 years old (youth target), they predominantly book online purchasing just a flight and some ground content. French travellers over 35 years old and also honeymooners would rather book more complex travel via traditional channels. There are approximately 6 tour operators selling Australia in France, with 12 producing dedicated Australia or combined Australia, New Zealand and South Pacific programs. The major traditional wholesalers selling Australia include Asia Voyages and Australie Tours. Over recent months, the Tour Operator wholesaler Ailleurs (brand Australie Authentique ), a new business-to-business player, has launched a dedicated Australia production. The number of direct sellers has increased in the French market with nine of the key players focusing on direct sales to the consumer. Key direct sellers include: Australie à la carte, Aventuria, Voyageurs du Monde, Australie Autrement, Maison de l Océanie, Monde Authentique, Cercle des Vacances, Marco Vasco and STA Travel. Special Interest Honeymoon travel is a specialist segment in France, which is highyielding for Australia, with the average French honeymooner spending approximately 4, Euros per trip. Correspondingly, the budget per couple is 5, Euros but can vary from 2,5 to 1, Euros. This type of long haul travel is booked primarily through traditional booking channels. Key operators selling honeymoons to Australia include Voyageurs du Monde, Australie à la Carte and Australie Tours. This segment has been widened to include Young Couples as tour operators also receive requests from couples not travelling on honeymoon specifically. Retail Agents Commission Level: 1% to 14% There are 5,5 travel agencies and 35, to 4, travel agents in France. There are eight main retail agency networks in France that accounted for a total of 3,652 agencies in 214. They are: > > AS Voyages created from the merger of Selectour and Afat Voyages with 1,194 travel agencies (33 per cent market share of the French market). > > Tourcom with 66 travel agencies (17 per cent market share). > > Thomas Cook with 55 travel agencies (16 per cent market share). > > Havas (created from the alliance of Havas Voyages and Carlson Wagonlit Travel) with 336 travel agencies (9 per cent market share). > > Nouvelles Frontières and Marmara with 28 travel agencies (8 per cent market share). > > Manor with 31 travel agencies (8 per cent market share). > > Leclerc Voyages with 184 travel agencies (5 per cent market share). > > Carrefour Voyages with 152 travel agencies (4 per cent market share). Retail agencies are quite powerful in France, controlling the distribution of tour operator brochures. Online Commission Level: 12% to 18% In 214, online travel sales declined by 1 per cent compared to 213 reaching 18.3 billion euros, split between direct suppliers (around 59 per cent) and OTAs. The top five French online operators are: > > Voyages-Sncf.com (6,528, UV per month). > > Lastminute.com (1,329, UV per month). > > E-Dreams (1,235, UV per month). > > Opodo (1,213, UV per month). Aussie Specialists The Aussie Specialist Program (ASP) is the primary platform for Tourism Australia to train and develop front line travel sellers to best sell Australia. As at 1 May 215, there were 375 qualified ASP agents in France and a further 221 agents in training. Inbound Tour Operators Commission Level: 2% to 3%»» Inbound tour operators form a key part of the distribution chain in France, linked with French wholesalers who run Australian programs. 4 FRANCE Market Profile 215

5 Trends Young consumers are increasingly booking direct with airlines and product. The French Online Travel Agency (OTA) market remains somewhat fragmented, with global, regional and local players each maintaining a significant share. Thirteen million French internet users have visited one of the top 1 travel websites in 214. Tour operators are currently looking for new distribution channels due to conflicts with retail networks over commissions. Planning and purchasing travel Of the passengers that book some part of their Australian holiday online, the three most popular items booked were international airfares (8 per cent), visas (54 per cent), and accommodation (46 per cent). French consumers have been impacted by the Global Financial Crisis, and are searching for value deals, particularly via online channels. However, traditional retail agencies remain an important channel for long haul, complex destinations such as Australia. Retail agents also remain a vital source of information, alongside travel books and guides. Three quarters of online buyers have a smartphone and 52 per cent have a tablet. In terms of conversion, 29 per cent of online buyers who have a tablet have used it to buy online (vs 27 per cent in 213) as have 17 per cent (vs 11 per cent in 213) who use a smartphone to buy online. Key trade and consumer events in 215 and 216 Event Location Date International French Travel Market (IFTM) Paris, France September 215 International Luxury Market Cannes Cannes, France December 215 (ILTM Cannes) European Product Workshop (EPW) London, UK April 216 Australian Tourism Exchange (ATE) Gold Coast, Australia May 216 (TBC) Planning a visit to market Top tips for sales calls Make sure you know the product and positioning of a tour operator before meeting with them. Product managers expect your products to be in line with what their clients require. The French travel trade prefer hard copies of brochures and collateral, and they also like images on CD. They will highly value information in French language. An average sales call with a product manager should last between 45 to 6 minutes. The best time for sales calls is January to April and October to early December. The key market centres to visit are Paris and Lyon. Although the French travel industry is highly concentrated in Paris, some key tour operators are located in other French cities (e.g. Nantes). Those operators shouldn t be ignored, and your sales call will be appreciated. For more general information on sales calls and planning a visit to market, please see Tourism Australia s Planning for Inbound Success ebook at inboundsuccess. Where to find more information Tourism Australia s activities in France are managed from its Frankfurt office and a representative office in Paris. For more information visit Tourism Australia s corporate website at Australian State and Territory Tourism Organisations operating in France include the South Australian Tourism Commission and Tourism NT. Also see: France Country Brief published by the Department of Foreign Affairs and Trade at: For the latest arrivals statistics, visit: For the latest International Visitor Survey statistics, visit: 5 FRANCE Market Profile 215