Tourism Tasmania. What Tasmanian Tourism Operators can learn from Domesticate
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1 Tourism Tasmania What Tasmanian Tourism Operators can learn from Domesticate
2 ia In March this year, Tourism Tasmania held two industry forums to present the findings from the TNS Domesticate 2011 report on why Australians do or do not travel. The full report is available from TNS, however, this document summarises the key insights presented at these events. Table of Contents Background 3 The Current Travel Landscape 3 Key Insights 4 1. Reassurance and Certainty 4 What does this mean for the Travel Industry? 4 2. Trading Up, Trading Down 5 What does this mean for the Travel Industry? 5 3. Reconnection 6 4. Digital in Travel 7 What does this mean for the Travel Industry? 7 References 8 Photographic acknowledgments: Tourism Tasmania. All rights reserved. Rob Burnett and Lap Fung Lam.
3 Tourism Tasmania Background The Domesticate 2011 study is conducted by TNS Australia annually to analyse why Australians do or do not travel. For 45 years TNS have been the leaders in tracking market research, needs-based segmentation research, choice modelling, brand equity modelling and online market research. Each year, TNS speak to over half a million Australians. Domesticate is a Qualitative Approach to research and was conducted in two phases. Phase 1 consisted of a seven day on-line discussion forum which included 45 participants, recruited from across Australia, conducted in September The objective of this phase was to gain detailed insights into the mindset, attitudes and behaviours of travellers across Australia and understand where we are today versus Phase 2 consisted of six, two and a half hour Focus Groups with participants from different states and life stages. The Focus Group sessions were held during October/November Participant Focus Groups included: Older Families and Empty Nesters from Brisbane Immigrant Backgrounds and Blended Families from Sydney Single Income, No Kids (SINKS), Double Income, No Kids (DINKS) and Younger Families from Melbourne. The objective of Phase 2 was to further build upon the areas of interest identified in Phase 1 and enable further drill downs into key topics by sub-group. The Current Travel Landscape According to the most recent TNS Travel Omnibus report, in 2011, we see some encouraging news for domestic tourism, with one in four Australians (24%) planning on taking more trips within Australia in the next 12 months, with participants taking shorter, smaller breaks and trips within Australia. In the past 12 months, 26% say they have taken a day trip to a region rather than staying overnight. 24% have taken a shorter trip than they would have otherwise done. Visiting Friends and Relatives (VFR) still plays a major role in facilitating domestic travel. 32% of Australians stayed with a friend or a relative on their last trip 46% of Australians have stayed with a friend or relative in Australia in the past 12 months 54% have had someone come and stay with them from interstate in the past 12 months Overseas holidays are still in demand. Some of the key points to note from respondents included: Overseas holidays are still viewed as the most valuable experience for Australians. Australians feel a sense of urgency that is not as strong for domestic holidays. Sense of needing to see the world whilst they are still young enough to do it. Feel overseas travel is an exclusive opportunity Youth are encouraged to travel to differentiate themselves to employers when entering the job market. 3 What Tasmanian Tourist Operators can learn from Domesticate 2011
4 Insights There were several key insights that emerged from the 2011 study that can be taken away and incorporated how we market and deliver to consumers of travel product. They were: 1. Australians are currently seeking reassurance and certainty. 2. The trading up, trading down is increasingly reflected in their purchase decisions including for travel. How can travel brands position themselves to take advantage of this? 3. The heartland of Australian domestic travel remains reconnection. 4. The role of digital in travel is growing ever more rapidly. Group buying goes mass market but are we at the crest of the wave. 1. Reassurance and Certainty Australian s are feeling overwhelmed and disillusioned. The state of Australian politics in the face of global financial difficulties causes great concern, and the media are being criticised for encouraging negativity and creating fear amongst Australians. This instability and fear exists in many other aspects of life. Australians are currently seeking reassurance and certainty: Travel is seen as one of the important enriching life experiences to which status is now attached. Where people used to buy things, they now buy experiences. Amidst uncertainty, people seeking safe and familiar things. What does this mean for the Travel Industry? This has positive implications for the domestic travel industry. Where once status was dependant on material possessions, more and more we see people attaching status to life experiences. By tapping into a sense of Nostalgia, Security and Simplicity Australian Experiences can tap into the current need for reassurance. By promoting Australia as a no worries holiday, backed by experiences that connect to this more inwardly focused mindset, and showcase experiences that make us feel good about ourselves and the future. 2 Visitor statistics are from Tourism Tasmania s Tasmanian Visitor Survey (year ended March 2011) 4 What Tasmanian Tourist Operators can learn from Domesticate 2011
5 2. Trading Up, Trading Down The trading up, trading down phenomenon is increasingly reflected in purchase decisions including travel. The general climate of uncertainty leaves people seeking safe and familiar things: Everything old is new again People are looking to save money Australians are also spending more cautiously, spending less on large scale indulgences, in favour of smaller treats, looking for deals and value for money. What does this mean for the Travel Industry? Whether it be saving on hotel room rates to attend an event, or having the ability to pick and choose elements of a package holiday to design their own experience, at a price they want to pay. Tourism operators need to understand who their customers are e.g. who will save on meals to pay for a great hotel, compared to who will sleep cheap, and eat more expensive. This is the ideal climate to promote small scale domestic travel such as daytrips, short breaks, add on services. 5 What Tasmanian Tourist Operators can learn from Domesticate 2011
6 3. Reconnection The heartland of Australian domestic travel continues to be about reconnection. When we look back at what Australians describing as an ideal Australian holiday as being familiar, nostalgic, a family holiday, connecting and unwinding, relaxation and the beach, experiencing the known and the familiar, Australian holidays should be built around the central idea of reconnection. 6 What Tasmanian Tourist Operators can learn from Domesticate 2011
7 4. Digital in Travel The use of digital media in purchase decisions continues to grow rapidly, in pre, during and post holiday periods. According to the TNS Thought Leadership Omnibus September 2011 and Digital Life 2012 studies: 53% of Australians own a Smart Phone 46% have accessed the internet on their mobile in the past 4 weeks (vs. 20% in 2010) Only 7% don t take their mobile phone with them on a domestic holiday Digital use is also different for consumers depending upon which Life stage they are at. Not only is the internet being used for trip or purchase planning, following the purchase, consumers are increasingly using digital media en route, bringing it with them, and having the expectation that tourism operators will support them for their related needs where possible. This might include the ability to charge batteries or to link to in room devices such as televisions, IPODS etc. Use of social networking sites such as Facebook and Trip Advisor to share feedback on travel products is becoming increasingly popular, often during and after their trips, Australians are becoming more likely to leave reviews. The TNS Digital Life 2012 study illustrated this point, stating Australians are becoming more confident, more connected and are voicing their opinion more online than ever before. Group Buying websites such as GroupOn, Livingsocial and Cudo has seen an increase in popularity and are a great tool in encouraging short term trial and contributing to a reassessment of Australia as a value destination. What does this mean for the Travel Industry? Understanding how customers/visitors found you and encouraging them to leave reviews and share their experience on websites, and proactively sharing information about your product yourself, is key to a successful digital communication strategy. As Australians are travelling with more and more devices such as mobile phones, laptops or tablets, gaming devices, cameras/video cameras, portable DVD players and GPS, expectations of the consumer for having facilities at the tourist destination to support these has become the norm. The ability to charge mobile devices or access the internet through WIFI (free) has become a critical selection criteria when deciding whether to utilise a particular tourism operator. Having a proactive strategy and preparing for the digital traveller has become paramount when trying to attract these consumers. It is important to regularly check sources such as Trip Advisor and Facebook and other review sites and understand the feedback on your product. 7 What Tasmanian Tourist Operators can learn from Domesticate 2011
8 References Domesticate 2011 TNS Digital Life 2012 TNS Thought Leadership Omnibus September 2011 About TNS At the heart of TNS are 12,000 consultants, from over 80 countries, who focus their insatiable curiosity for people, trends and culture on solving business problems. We advise clients on specific growth strategies around new market entry, innovation, brand switching and stakeholder management, based on long-established expertise and marketleading solutions, At TNS, we have more conversations with the world s consumers than anyone else and understand individual human behaviours and attitudes across every cultural, economic and political region of the world. TNS is part of Kantar, one of the world s largest insight, information and consultancy groups servicing over half of the Fortune Top 500 companies. Please visit for more information. For more research and opinion from TNS industry experts, visit their blog at or follow on twitter 8 What Tasmanian Tourist Operators can learn from Domesticate 2011
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