$0.7bn total spend. 110,100 arrivals. 7.3m total nights. 40% dispersed nights 1. France Market Profile. Performance overview

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1 Market Profile Performance overview In 2013, France was Australia s 14th largest inbound market for visitor arrivals, the 13th largest market for total expenditure and 10th visitor nights. It was the seventh largest market for total dispersed nights 1 during The October 2013 issue of Tourism Research Australia s biannual Tourism Forecasts estimates that visitor arrivals from France will increase 4 per cent in 2013/14 and 5 per cent in 2014/15, with an annual compound growth rate of 5 per cent expected until 2017/18. $0.7bn total spend Total spend from France in 2013 (up 21 per cent on 2012) 3 110,100 arrivals French visitor arrivals in 2013 (up 6.2 per cent on 2012) 4 Aviation routes from France to Australia 2 7.3m total nights French visitor nights spent in Australia in 2013 (up 18 per cent on 2012) 3 London Paris Lyon Toulouse Nice Doha Abu Dhabi Dubai Kuala Lumpur Singapore Hong Kong Seoul 40% dispersed nights 1 Percentage of total French visitor nights spent outside gateway cities in 2013 (up 1 per cent on 2012) 3 Australia ranks 19 th among all out of region outbound 5 destinations for French travellers 6 Visitor profile in % repeat visitors 3 69% of total arrivals are for leisure years largest demographic 3 $6,761 average spend 3 70 nights average stay 3 MarMay and SepNov peak booking period Jul and OctFeb peak travel period Consumer research For detailed research into how French consumers view Australia and what motivates them to visit the country, see statistics/factsheets 1. Dispersed nights refer to nights spent outside gateway cities of Sydney, Melbourne, Brisbane and Perth. 2. Source: CAPA Centre for Aviation, Official Airline Guide (OAG), and Tourism Australia analysis. 3. International Visitor Survey (Tourism Research Australia). 4. Australian Bureau of Statistics, Overseas Arrivals & Departures. 5. Out of region travel from France excludes travel to Europe, North Africa, French Territories and Israel. 6. Tourism Economics, Tourism Decision Metrics. 1 France Market Profile 2014

2 Market Performance Arrivals trends History of Visitors from France into Australia History of visitors (000s) 120 France Source : Australian Bureau of Statistics, Overseas Arrivals and Departures International visitor arrivals (000s) Source: Australian Bureau of Statistics, Overseas Arrivals & Departures History of Visitors from France by Purpose of Visit International visitors by main purpose of visit 120 France Source : Australian Bureau of Statistics, Overseas Arrivals and Departures International visitor arrivals (000s) Holiday VFR Business Education Employment YE Dec 2000 YE Dec 2001 YE Dec 2002 YE Dec 2003 YE Dec 2004 YE Dec 2005 YE Dec Source: Australian Bureau of Statistics, Overseas Arrivals & Departures YE Dec 2007 YE Dec 2008 YE Dec 2009 YE Dec 2010 YE Dec 2011 YE Sep 2012 YE Dec 2013 Others 2 France Market Profile 2014

3 Market Performance Visitor Arrivals by Purpose of Visit for ,000 Source: Australian Bureau of Statistics, Overseas Arrivals and Departures Total number of visitors 60,000 50,000 40,000 30,000 20,000 10,000 Holiday Visiting friends or relatives Business Education Employment Others Source: Australian Bureau of Statistics, Overseas Arrivals & Departures Visitor Arrivals by Age for France: Visitor Arrivals by Age Source: Australian Bureau of Statistics, Overseas Arrivals and Departures 60,000 Under 15 yrs 50, to 29 yrs Total number of visitors 40,000 30,000 20, to 44 yrs 45 to 59 yrs 60 yrs & over 10, Source: Australian Bureau of Statistics, Overseas Arrivals & Departures 3 France Market Profile 2014

4 Market Performance Expenditure trends Visitor Spend by Purpose of Visit for Total Spend (A$ 000s) 400, , , , , , ,000 50,000 Holiday Visiting friends and relatives Business Education Employment Others Source: International Visitor Survey (Tourism Research Australia) Visitor Spend by Age for , ,000 France: Visitor Spend by Age Source: International Visitor Survey (Tourism Research Australia) 1529 yrs Total Spend (A$ 000s) 400, , , , , , ,000 50, yrs 4559 yrs 60 yrs & over Source: International Visitor Survey (Tourism Research Australia) 4 France Market Profile 2014

5 Market Performance Visitor profiles Holiday Spend per trip $6,459 Stay 63 nights Spend per night $102 Visiting Friends and Relatives Spend per trip $3,762 Stay 28.3 nights Spend per night $133 Leisure Spend per trip $5,810 Stay 54.7 nights Spend per night $106 Business Spend per trip $6,104 Stay 20.5 nights Spend per night $297 International Visitor Survey (Tourism Research Australia). Note: Data refers to an average of France Market Profile 2014

6 Aviation Landscape > > The FranceAustralia route remains highly competitive with a number of airlines offering a range of different routes and airfares to all Australian capital 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. > > In 2013, access from France to Australia continued to improve with capacity growth driven by Middle Eastern carriers. > > Looking ahead, the outlook for overall capacity growth out of France in 2014 is positive, with Etihad Airways and Qatar Airways planning to deploy larger aircraft on their Paris services during 2014 and the United Arab Emirates Government lobbying for additional flying rights. > > Airlines continue to open up new Australian destinations for European travellers, making it easier for French visitors to travel and disperse around Australia. For example Malaysia Airlines launched Kuala LumpurDarwin services in November 2013 and Emirates launched DubaiAdelaide services in November 2012, becoming daily in February > > 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 FranceKLM 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. Aviation routes from France to Australia London Paris Lyon Toulouse Nice Doha Abu Dhabi Dubai Kuala Lumpur Singapore Hong Kong Seoul Key airlines and share of passengers 32% 5% 5% 6% 8% 18% 9% 17% Airline Emirates 13% 20% 15% 16% 18% Qantas Airways 30% 25% 25% 25% 17% Singapore Airlines 10% 9% 9% 8% 9% Cathay Pacific 10% 7% 7% 7% 8% Etihad 4% 4% 6% 5% 6% Jetstar 6% 7% 6% 7% 5% Malaysia Airlines 2% 2% 3% 6% 5% Other 25% 25% 29% 27% 32% Table includes direct and indirect capacity Source: Department of Immigration and Border Protection 6 France Market Profile 2014

7 Distribution Consumers under 30 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 40 years old and for special interest travel such as Honeymoons. Distribution System Wholesalers/ Large Agents Commission Level: 8% to 15% > > There are approximately 70 tour operators selling Australia in France, with 12 producing dedicated Australia or combined Australia, New Zealand and South Pacific brochures. These tour operators include Australie Tours, Australie à la Carte, Aventuria, Voyageurs du Monde, Nouvelles Frontières, ASIA, Australie Autrement, Cercle des vacances, Maison de l Océanie, STA Travel, Marco et Vasco (Australieveo) and Australie Authentique. > > Consolidation and mergers have predominately impacted the retail sector and the relationships between tour operators and retail networks. The majority of the dedicated Australian tour operators in the market are Frenchowned. > > The number of direct sellers has increased in the French market with eight 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, Australie Authentique, Cercle des Vacances and Marco et Vasco (Australiaveo). > > STA Travel commenced operations in partnership with ISIC (International Student Identity Card) in France in Special Interest > > Honeymoon is a specialist segment in France which is highyielding for Australia, with the average French honeymooner spending approximately 4,000 Euros per trip. The budget per couple is 5000 Euros but it can vary from 2,500 to 10,000 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. Retail Agents Commission Level: 10% to 14% > > There are 5,500 travel agencies and 35,000 to 40,000 travel agents in France. There are eight main retail agency networks in France that account for a total of 3,529 agencies in They are: AS Voyages created from the merger of Selectour and Afat Voyages with 1,161 travel agencies (32 per cent market share of the French market) Thomas CookJet Tours with 605 travel agencies (17 per cent market share) Tourcom with 580 travel agencies (16 per cent market share) Havas (created from the alliance of Havas Voyages and Carlson Wagonlit Travel) with 363 travel agencies (10 per cent market share) Nouvelles Frontières and Marmara with 283 travel agencies (8 per cent market share) Manor with 225 travel agencies (8 per cent market share) Leclerc Voyages with 184 travel agencies (5 per cent market share) Carrefour Voyages with 128 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% > > Online travel sales increased by 3 per cent in 2013 which represent an additional 18.5 billion Euros compared to In 2012, French online travel sales represented 43 per cent of the total amount of the global online tourism travel sales. 7 > > The top five French online operators are: 8» VoyagesSncf.com (6,940,000 UV per month) Lastminute.com (1,757,000 UV per month) Opodo (1,332,000 UV per month) VoyagePrive (1,302,000 UV per month) EDreams (1,264,000 UV per month) Aussie Specialists > > The Aussie Specialist Program (ASP) is the primary platform for Tourism Australia to train and develop retail agents to sell Australia. > > A series of French partner programs are available in the French version of the Aussie Specialist Program including Malaysia Airlines, Etihad Airways, Australie Tours, as well as State and Territory specialist modules. > > As at 28 April 2014, there were 394 qualified ASP agents in France and a further 217 agents in training. Inbound Tour Operators Commission Level: 20% to 30% > > Inbound tour operators form a key part of the distribution chain in France, linked with French wholesalers who run Australian programs. 7. L Echo Touristique December 25th 2013 & French Online Travel Overview Ninth Edition / 2013 PhoCusWright. 8. Médiamétrie / FEVAD 4th quarter of France Market Profile 2014

8 Distribution Trends Distribution > > 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. In 2013, 13.4 million internet users visited one of the main OTAs. > > 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 (80 per cent), visas (54 per cent), and accommodation (46 per cent). 9 > > French consumers have been affected 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 for French consumers. > > Mobile phones and tablet computers are expected to play an increasingly important role in the French online travel market. About 2.5 per cent of sales are completed on a mobile phone. The number of the tablet computers are expected to rapidly increase with more than one third of households equipped with one in the next six months. Nowadays, 3 million French households own a tablet computer. 10 Planning a visit to market Top tips for sales calls > > Make sure you know the product and positioning of a tour operator before the meeting. 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 60 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 (eg. Nantes). Those operators shouldn t be ignored, as 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 9. International Visitor Survey (Tourism Research Australia). 10. Médiamétrie, 1 foyer sur 10 possède une tablette tactile en France, France Market Profile 2014

9 Distribution Seasonality > > The peak booking periods for travel to Australia are the European spring and autumn. > > The peak travel periods to Australia are July and October to February. Seasonality of visitors from France 14,000 12,000 Seasonality of visitors from France 10,000 8,000 6,000 4,000 2, Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source : Overseas Arrivals & Departures, Australian Bureau of Statistics Source : Overseas Arrivals & Departures, Australian Bureau of Statistics Key trade and consumer events Event Location Date International French Travel Market (IFTM) Paris September 2014 International Luxury Market Cannes Cannes Dec 2014 (ILTM Cannes) European Product Workshop London April 2015 TBC Corroboree Europe TBC April to May 2015 Australian Tourism Exchange (ATE) Melbourne, Australia 2125 June 2015 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: Please note In March 2014, the Australian Bureau of Statistics (ABS) released revised estimates (covering the period from July 2004 to December 2013) for international visitor arrivals and departures in its Overseas Arrivals and Departures (OAD) publication. The changes reflect major revisions to the methodology for inputting missing traveller data, which led to substantial downward revisions for business travel and numerous markets. The International Visitor Survey (IVS) statistics incorporate the ABS changes to visitor arrival statistics from the March quarter Tourism Research Australia (TRA) advise that there is now a break in series for the IVS statistics from the March quarter 2005, and that previous editions of the IVS should be used with caution. For more information, please refer to the ABS and TRA websites, and 9 France Market Profile 2014