Market Profile Performance overview In 2013, New Zealand was Australia s largest inbound market for visitor arrivals, fourth largest market for total expenditure and third for visitor nights. It was the second largest market for total dispersed nights 1 during 2013. The October 2013 issue of Tourism Research Australia s biannual Tourism Forecasts estimates that visitor arrivals from New Zealand will increase 5 per cent in 2013/14 and 4 per cent in 2014/15, with an annual compound growth rate of 3 per cent expected until 2017/18. Aviation routes from New Zealand to Australia 2 Cairns Sunshine Coast Brisbane Gold Coast $3.44.2bn Potential for the New Zealand market to be worth by 2020 (Tourism 2020) $2.3bn total spend Total spend from New Zealand in 2013 (up 2 per cent on 2012) 3 1,193,200 arrivals New Zealand visitor arrivals in 2013 (up 0.7 per cent on 2012) 4 15.1m total nights New Zealand visitor nights spent in Australia in 2013 (down 3 per cent on 2012) 3 Perth Adelaide Melbourne Sydney Queenstown Auckland Hamilton Rotorua Wellington Christchurch Dunedin 43% dispersed nights 1 Percentage of total New Zealand visitor nights spent outside gateway cities in 2013 (same as 2012) 3 Australia ranks 1 st Visitor profile in 2013 among all outbound destinations for New Zealand travellers 5 94% repeat visitors 3 72% of total arrivals are for leisure 3 4559 years largest demographic 3 $2,127 average spend 3 14 nights average stay 3 AprAug peak booking period FebMay and SepNov peak travel period Consumer research For detailed research into how New Zealand consumers view Australia and what motivates them to visit the country, see www.tourism.australia. com/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. Source: International Visitor Survey, Tourism Research Australia. 4. Source: Overseas Arrivals & Departures, Australian Bureau of Statistics. 5. Source: Tourism Decision Metrics, Tourism Economics. 1 New Zealand Market Profile 2014
Market Performance Arrivals trends History of Visitors from New Zealand into Australia History of visitors (000s) 1,400 New Zealand Source : Australian Bureau of Statistics, Overseas Arrivals and Departures International visitor arrivals (000s) 1,200 1,000 800 600 400 200 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Australian Bureau of Statistics, Overseas Arrivals & Departures History of Visitors from New Zealand by Purpose of Visit International visitors by main purpose of visit 1,400 New Zealand Source : Australian Bureau of Statistics, Overseas Arrivals and Departures International visitor arrivals (000s) 1,200 1,000 800 600 400 200 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 2006 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 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 New Zealand Market Profile 2014
Market Performance Visitor Arrivals by Purpose of Visit for 20032013 600,000 500,000 Source: Australian Bureau of Statistics, Overseas Arrivals and Departures Holiday Visiting friends or relatives Total number of visitors Total number of visitors 400,000 300,000 200,000 100,000 Business Education Employment Others 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Australian Bureau of Statistics, Overseas Arrivals & Departures Visitor Arrivals by Age for 20032013 New Zealand: Visitor Arrivals by Age 20032013 Source: Australian Bureau of Statistics, Overseas Arrivals and Departures 400,000 350,000 Under 15 yrs Total number of visitors 300,000 250,000 200,000 150,000 100,000 15 to 29 yrs 30 to 44 yrs 45 to 59 yrs 60 yrs & over 50,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Australian Bureau of Statistics, Overseas Arrivals & Departures 3 New Zealand Market Profile 2014
Market Performance Expenditure trends Visitor Spend by Purpose of Visit for 20032013 1,200,000 Holiday Total Spend (A$ 000s) Total Spend (A$ 000s) 1,000,000 800,000 600,000 400,000 200,000 Visiting friends and relatives Business Education Employment Others 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: International Visitor Survey (Tourism Research Australia) Visitor Spend by Age for 20032013 800,000 700,000 New Zealand: Visitor Spend by Age 20032013 Source: International Visitor Survey (Tourism Research Australia) 1529 yrs Total Spend (A$ 000s) 600,000 500,000 400,000 300,000 200,000 100,000 3044 yrs 4559 yrs 60 yrs & over 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: International Visitor Survey (Tourism Research Australia) 4 New Zealand Market Profile 2014
Market Performance Visitor profiles Holiday Spend per trip $2,178 Stay 12.1 nights Spend per night $179 Visiting Friends and Relatives Spend per trip $1,433 Stay 12.5 nights Spend per night $115 Leisure Spend per trip $1,842 Stay 12.3 nights Spend per night $150 Business Spend per trip $1,945 Stay 7.6 nights Spend per night $256 International Visitor Survey (Tourism Research Australia). Note: Data refers to an average of 20092013 5 New Zealand Market Profile 2014
Aviation Landscape > > The transtasman route remains Australia s busiest international route in terms of direct capacity and frequency. The majority of the New Zealand traffic to Australia originates from Auckland, Christchurch and Wellington. > > Capacity growth to Australia rebounded in 2013, up four per cent on 2012, and further growth is expected in 2014 and 2015. > > Capacity is relatively steady throughout the year, with no clear seasonal peaks. Average loads remained stable in 2013, at 77 per cent, and are typically stronger during the first half of the year (JanuaryApril). > > Cheaper fares on the route continue with increased price competition and new services launched to competitor destinations. The resumption of services to Hawaii and Bali in 2012 and 2013 is expected to place downward pressure on Australia s market share (of outbound travel from New Zealand). > > Air New Zealand carried 47 per cent of all visitors from New Zealand into Australia in 2013. > > Carriers continue to trial and develop new services on transtasman routes, with Air New Zealand and Virgin Australia operating seasonal services such as ChristchurchPerth (DecemberApril), AucklandSunshine Coast (JuneOctober) and launching AucklandPerth on 3 December 2013. Aviation routes from New Zealand to Australia Perth Cairns Adelaide Melbourne > > The Qantas/Emirates alliance was approved on transtasman services in 2013. Jetstar was also recently added to this agreement. Jetstar plans to temporarily deploy its new B787 aircraft on the Tasman route. Both Qantas and Jetstar plan to add seasonal Queenstown to Sydney/Melbourne services. Emirates deployed the A380 on AucklandBrisbane Dubai services in October 2013. Sunshine Coast Brisbane Gold Coast Sydney Queenstown Dunedin > > The proposed simplification of the transtasman border (eg customs and immigration processes) has the potential to open new routes, such as Canberra or Newcastle, and improve travel flows. Discussions continue between the Australian and New Zealand Governments. Auckland Hamilton Rotorua Wellington Christchurch 8% 14% 7% 7% 47% Key airlines and share of passengers Airline 2009 2010 2011 2012 2013 Air New Zealand 46% 48% 50% 48% 47% Virgin Australia 15% 15% 14% 18% 17% Qantas Airways 16% 15% 14% 14% 14% Emirates 9% 8% 8% 8% 8% Jetstar 8% 8% 8% 8% 7% Other 5% 5% 5% 5% 7% 17% Table includes direct and indirect capacity Source: Department of Immigration and Border Protection 6 New Zealand Market Profile 2014
Aviation Landscape Direct aviation capacity from New Zealand to Australia Direct aviation capacity from New Zealand to Australia 4,500 +5% 4,200 +4% +3% Seats per year ( 000) 3,900 +6% +1% 3,600 3,300 2011 2012 2013 2014 (F) 2015 (F) Source: Department of Infrastructure and Regional Development Note: (F) is a forecast based on Tourism Australia analysis, chart includes direct services only 7 New Zealand Market Profile 2014
Distribution The New Zealand distribution system continues to evolve as online bookings for short haul travel grow. In response, traditional distributors are increasing their online capabilities. Bookings to Australia are primarily driven by low airfares and short/sharp sales, leading to a trend where consumers book airfares first and ground components later, rather than traditional package tours. Distribution System Wholesalers/ Large Agents Commission Level: 20% to 25% > > New Zealand has three major wholesalers which work in alliance with the retail travel chains. They are House of Travel, Go Holidays (Stella Group) and Infinity Holidays (Flight Centre Group). There are also smaller and more specialised wholesalers in the New Zealand market such as AIM Holidays, Lifestyle Holidays and Air New Zealand Holidays. > > Whilst there are preferred arrangements in place, wholesalers are open to deal with any retail agencies (with the exception of Infinity Holidays). Special Interest > > Operators who specialise in niche segments, such as events and sports travel, include The Experience Group, Williment Sports Travel and Showbiz Events & Travel. Retail Agents Commission Level: 10% to 12% > > There are approximately 400 listed retail travel agencies employing over 3,000 travel consultants in New Zealand. > > The main listed retail brands are as follows: Flight Centre with over 130 retail stores and 45 brokers House of Travel with 70 retail stores and seven Orbit corporate travel stores United Travel with 69 branded and nonbranded retail stores Harvey World Travel with 52 retail stores First Travel Group with 44 nonbranded affiliated agencies Mondo with 12 Mondo, Mondo Travel Connect, Mondo Business Travel agencies Travel Managers organisation has 150 travel brokers Air New Zealand Holidays with 26 agencies Travel Smart with 8 branded and nonbranded agencies, and The Travel Brokers organisation has over 110 travel brokers. Online Commission Level: 10% to 12% > > Key travel websites include Air New Zealand, Qantas, Virgin Australia, Webjet, Wotif, Expedia, Harvey World Travel, and House of Travel. Business Events > > New Zealand is the largest inbound conference and incentive market for Australia. The lead time for travel planning has traditionally been 12 to 18 months, though more recent trends show this is shortening to around three to six months. > > There are a number of large companies including HOT Events, Go Conference & Incentive Management, CiEvents, Gilpin Travel, and Williment Event Management specialising in this sector, as well as many boutique incentive houses, corporate travel agents and professional conference organisers throughout New Zealand. > > The Pacific Area Incentive and Conference Expo (PAICE) is the key trade show to showcase Australian conference and incentive product. Held annually in November in Auckland, more than 180 conference and incentive planners attend this oneday show to meet and learn more about what is available in Australia for their clients. Information about this event can be found at www.paiceexpo.co.nz 8 New Zealand Market Profile 2014
Distribution Trends Distribution > > With the majority of New Zealanders booking travel to Australia online, traditional retail groups and airlines are increasing their online booking capability to meet demand. > > International airline services operate regularly from Auckland, Wellington and Christchurch. Limited services are available from the South Island centres of Queenstown and Dunedin, and the North Island centres of Hamilton and Rotorua. > > Aggressively priced transtasman airfares (particularly for the East Coast) position Australia as a very accessible travel destination for New Zealand consumers. Planning and purchasing travel > > According to findings from Tourism Australia s Consumer Demand Research project 6, New Zealand respondents would use a mix of online and offline sources to research a trip to Australia. These include general internet searches, travel websites, brochures and talking to family and friends who have been. > > Further to this, over 50 per cent of consumers are purchasing airfares online. Ground portions are being purchased either online (directly to product) or through retail agencies for complex or regional itineraries. > > Many consumers use internet travel websites to research their holidays. However, traditional distribution channels remain a key source of information on holiday destinations and products. Planning a visit to market Top tips for sales calls > > It is preferable to make regular sales visits each year to the New Zealand market. Sales calls can be made throughout the year, however avoid December and January as this is the summer holiday season. > > A consistent market presence through advertising and wholesale or retail activity for two or more years will help to build New Zealand industry relationships and achieve a greater return. > > The key market centres to visit are Auckland, Wellington and Christchurch. Key regional centres to visit are Hamilton, Tauranga, Nelson, Dunedin and Queenstown. > > For more general information on sales calls and planning a visit to market, please see Tourism Australia s Planning for Inbound Success ebook at www.tourism.australia.com/inboundsuccess Seasonality > > The peak booking period for travel to Australia is April to August (the New Zealand winter). > > The peak travel period to Australia is February to May and September to November, however arrivals are relatively steady year round. Seasonality of visitors from New Zealand 140,000 120,000 Seasonality of visitors from New Zealand 100,000 80,000 60,000 40,000 20,000 2013 2012 2011 2010 2009 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source : Overseas Source : Arrivals Overseas Arrivals & Departures, & Departures, Australian Australian Bureau Bureau of Statistics of Statistics 6. Tourism Australia, Australian Consumers Demand Research, conducted by BDA Marketing Planning, 2012. 9 New Zealand Market Profile 2014
Distribution Key trade and consumer events Event Location Date Flight Centre Travel Expo (winter) Auckland August 2014 (Held every August) PAICE Auckland 19 November 2014 (Held every November) Flight Centre Travel Expo (summer) Auckland February 2015 Wellington Christchurch State Tourism Organisation Road Shows Various Various State Tourism Organisation Workshops Various Various Australian Tourism Exchange (ATE) Melbourne, Australia 2125 June 2015 Where to find more information Tourism Australia s activities in New Zealand are managed from its Auckland office. For more information visit Tourism Australia s corporate website at www.tourism.australia.com Australian State and Territory Tourism Offices operating in New Zealand include: Destination NSW, the South Australian Tourism Commission, Tourism and Events Queensland, Tourism Tasmania, Tourism Victoria, and Tourism Western Australia. Also see: NZ Country Brief published by the Department of Foreign Affairs and Trade at www.dfat.gov.au/geo For the latest arrivals statistics, visit: www.tourism.australia.com/statistics/arrivals For the latest International Visitor Survey statistics, visit: www.tourism.australia.com/statistics/international 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 2005. 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, www.abs.gov.au and www.tra.gov.au. 10 New Zealand Market Profile 2014