Australia and New Zealand Report May 2012

May
2012
Visit California Monthly
Activity Report - AUSTRALIA
Gate 7 - AUSTRALIA

TABLE OF CONTENTS
Table of Contents
AUSTRALIAN MARKET OVERVIEW ............................................................................................... 2
Economy .................................................................................................................................... 2
Airline Updates .......................................................................................................................... 3
Wholesale Updates .................................................................................................................. 4
Consumer Updates .................................................................................................................. 5
OTA Update ............................................................................................................................... 7
DIGITAL UPDATES ........................................................................ Error! Bookmark not defined.
Visitcalifornia.com.au Updates ............................................................................................. 8
Social Media .............................................................................................................................. 9
CONSUMER MARKETING CAMPAIGNS ................................................................................... 10
Access All Areas ..................................................................................................................... 10
PR HIGHLIGHTS......................................................................................................................... 12

AUSTRALIAN MARKET OVERVIEW
Australia Economy
Economy
Unemployment Rate 5.1 % in May 2012
Consumer Price Index -0.2% Jan 12 - Mar 12
CURRENT STATS PREVIOUS MONTH & LY
(5.2% Mar 12, 4.9% Apr 11)
(1.5% Jan 11 – Mar 11)
GDP Growth +0.4% Q1 2012 (+0.4% Q4 11 – +0.6% Q1 11)
New Zealand Economy
Unemployment Rate 6.7 % in Q1 2012
Consumer Price Index +0.5% Jan 12 - Mar 12
CURRENT STATS PREVIOUS MONTH & LY
(6.3% Q4 11, 6.8% Q1 11)
(4.2% Jan 11 – Mar 11)
GDP Growth +0.3% Q1 2012 (+0.3% Q4 11 – +0.3% Q1 11)
Exchange Rates
AUSTRALIA $1 NEW ZEALAND $1
USD$0.97 (May 31 2011: $1.06)
USD$0.75 (May 31 2011: $0.82)

Airline Updates
Virgin carriers unite for LA promo
For the first time, all three Virgin airline brands have joined forces in Los Angeles, the
only common port of the three carriers, to launch a joint media campaign featuring
the first short film to be shot at 35,000ft. The campaign, entitled “Virgin Skies,” will
culminate with the premiere screening of the film Departure Date, which was written
and directed by Kat Coiro. Scenes for the film, starring Ben Feldman of Mad Men
fame, and Aussie actress Nicky Whelan, were shot on three commercial services
operated by the airlines. An exclusive screening of the film will take place as part of
the opening of the 2012 Los Angeles Independent Film Festival. The film centres
around Jake, who experiences love at first sight while on board a Virgin flight.
Qantas Executives to leave the company
A number of senior Qantas executives - including Rob Gurney and Bruce Buchanan
- will leave the airline in the latest stage of its five year “transformation plan”. A
restructure of the airline will see it split into two distinct businesses, Qantas
International and Qantas Domestic with separate chief executives and operational
and commercial functions. Financial results will also be reported separately.
The new structure will be effective from July 1, the first day of the 2012/13 financial
year. The current boss of the frequent flyer program, Simon Hickey, will step up to
chief executive of Qantas International with Lyell Strambi, group executive of
operations, to head up the domestic airline. The shake-up will see Jetstar Group
chief executive Bruce Buchanan leave after nine years with Qantas. He will remain
with Jetstar for six months and provide consultancy work for a further 18 months.
Jayne Hrdlicka, group executive strategy and technology, will take over at Jetstar.
Rob Gurney, another long serving and high profile executive, will also leave. The
Qantas Airlines group executive commercial and freight has decided it was
“appropriate to leave the group”, Qantas said in a statement. Qantas chief
executive Alan Joyce said the split into two businesses recognises that “Qantas
Group is a true portfolio business”. “Formally separating the management of Qantas
Domestic and Qantas International will ensure we can independently run each
business according to its specific priorities and market conditions,” Joyce said.
“[They] face very different situations.” He said its domestic business is “strong and
profitable” with the highest level of customer satisfaction since 2004. In comments
certain to rile Virgin Australia, Joyce added that Qantas remained “the airline of
choice for corporate Australia”. The process of turning the international business to
a “sustainable position”, was underway, he said.

Wholesale Updates
Top 20 flight centre group international retail airfares sold in
May (rank & destination)
1 LONDON
2 PHUKET
3 LOS ANGELES
4 DENPASAR
5 BANGKOK
6 AUCKLAND
7 NEW YORK NEW YORK
8 PARIS
9 HONG KONG
10 SINGAPORE
11 MANILA
12 HONOLULU
13 ROME
14 NADI
15 DUBLIN
16 MANCHESTER
17 KUALA LUMPUR
18 FRANKFURT
19 KOH SAMUI
20 SAN FRANCISCO
Dollar drop to hit pricing
Qantas Holidays this morning warned of potential price rises due to the decline of
the Aussie dollar over recent weeks. In a trade update, the JT Gowned wholesaler
said that “to date we have protected your customers from the impact of the falling
A$ by making very nominal increases to our pricing, and price protecting your
existing bookings. “However, unless we see a major reversal in the AUD next week,
we will need to call for final payment on all deposited bookings very soon,” it
added. Effective immediately Qantas Holidays is guaranteeing pricing on all
deposited bookings for 14 days to allow for finalisation at current levels. The
wholesaler says that if final payment isn’t received by Wed 13 Jun then clients “risk a
potential price increase at this time”. The dollar has softened from US$1.04 to just
under US97c, dipping a further 1.5% overnight amid concern about the ongoing
economic crisis in Europe. Qantas Holidays said it would advise the market again if
the price increase on 13 June is proceeding “once it becomes clearer if the AUD has
stabilised or is continuing to weaken.”

Consumer Updates
Agents TAAP into US
EXPEDIA’s Travel Agent Affiliate Program has reported a surge in bookings away from
Europe in favour of the United States over the past two weeks. A “major shift” last
week saw
European destination figures fall 10 percentage points to 38% of the program, while
results for the USA jumped eight points to 31%. Oceania/APAC bookings held a 15%
share of TAAP figures. Overall numbers have grown by 150% year-on-year.

TRADE ACTIVITY
Trade Training
- Conducted trade training at Mogul Ski World, Travelplan (Melbourne and Sydney),
Blue Powder Tours and Value Tours
Trade Shows/Industry Events
- Represented Visit California at Visit USA Newcastle Trade Show
- Represented Visit California at Skimax Agent Night
- Represented Visit California at Mogul Ski World Agent Night
- Represented Visit California at Dive Fish Snow Consumer Nights, Snow Travel Expo
Sydney, Mogul Consumer Night and Traveplan Expos in Sydney and Melbourne
- Attended Warren Miller Movie Night
Coops
- SkiMax Ski Show Coop in market
- Planning for Expedia TAAP Online Training Incentive
Familiarization Visits
- Planning underway for Travelscene American Express Fam – October 2012
Distribution of (not including training and shows/events):
• California IVG (Gate 7): 4
• California IVG (TIFS – i.e. Insider Signup): 56
• California Maps: 0
• Collateral: 0

Distribution of (training and shows/events):
• California IVG:
• Australian California Guide:
• Collateral:
Running Tally 2,947
Meetings
COMPANY MEETING HIGHLIGHTS
• Travelscene American Express
Met with Damian Borg to discuss Santa Monica
conference
• Subdivision
Met with Robert Bergin to discuss ‘great
outdoors’ advertising plans for 12/13
• Disney Met with Karen Prideaux for general catchup
• Expedia Met with Stuart Udy to discuss joint OTP incentive
• Zuji/Travelocity
Met with Danielle Pagano to discuss plans for
12/13
• Flight Centre Met with Mario Ferro for general catch up
• United Airlines Met with Chris Petty to discuss plans for 12/13
• Mondo Travel
Met Gordon Bayne and marketing team to
discuss coop plans for 12/13
• House of Travel Met Lisa Paulsen for general catch up
• Ski Travel
Met with Julie Lewisham for discussion on 12/13
snow plans
• Snowcapped Tours
Met with John Shulze for discussion on 12/13
snow plans
• Snow Travel
Met with Olga Balashov and marketing team for
discussion on 12/13 snow plans
• Air New Zealand
Met with Nicole Bennett and Lisa Dunn for
general 12/13 catchup
• Adventure World
Met with Heidi Bullough and Renee Stanton for
general catchup
• Agent sign-ups for May: 8
• Agent completions for May: 6
Running Tally 442/1038
OTA Update

DIGITAL UPDATES
April 2012 Statistics
Visitcalifornia.com.au Updates
HEADLINE/COMMENTS : Consumer advertising campaign in market driving numbers.

Facebook Insights
Reach
Social Media
The reach graph shows how manny
y people saw any content about the Visit California –
Australia page from 1 May – 30 May 2012 2012, and where applicable, whether these hese people
were reached though organic, paid, or viral channel.

Frequency
CONSUMER ONSUMER MARKETING CAMPAIGNS
Overview/Description
Working with MCM Media – Visit Visit California California is is sponsoring a comprehensive media media and
content ontent driven campaign, centred on the Hoyts Insider property. Having secured a 3 month
cinema sponsorship, the campaign included significant radio activation with the “Hot Hits
Live from LA”, outside broadcasts, digital display ads and long form video.
The campaign will be split into 3 pillars; Pillar 1 – Awards Season, Pillar 2 – Sports, and Pillar 3
Festivals
Pillar 3 – Festivals
Access All Areas
Festivals is the third, and final Pillar Pillar that that is is in in market, market, and and below below are the the elements and and assets
assets
that have been completed and are in market;
ELEMENT INFORMATION & STATUS

Hoyts Insider – Episode 1 • Filmed out the front of the San Diego Mardi Gras
• In cinemas on 5 April 2012, for 4 weeks
Hot Hits Live from LA Outside Broadcast 3
• Recorded during the Coachella Music Festival
Long Form Video 1 Video covered Coachella Music Festival, 2012, San Diego
Mardi Gras, Wanderlust and Mendecino Food and Wine
Festival
Digital Display Ads Access All Areas style guide created to execute brand
campaign.
VCA.com.au/California
Insider
New look California Insider Page – and launch of
comprehensive & interactive events guide

PR HIGHLIGHTS
• Sunrise/Weekend Sunrise’s James Tobin visited California to interview Rock of
Ages celebrities including Russell Brand, Mary Blige, Catherine Zeta Jones.
Packages promoting Sunset Strip and West Hollywood aired on Sunrise and
Weekend Sunrise. Clips were also produced for California Insider.
• Coachella coverage appears in Rolling Stone and Frankie magazines.
Media Trips
Journalist Name Outlet Regions Visited
Andrea Beattie
James Tobin
Amelia Romanos
Anna Brain
Justin Jamieson
Ben Groundwater
Mx
Sunrise
Fairfax NZ
Mx
Get Lost
Sun Herald
Huntington Beach, West Hollywood
West Hollywood, Universal Studios
Yosemite, San Francisco
Palm Springs, Hollywood, Six Flags, USH
USH, West Hollywood, LA
San Francisco, Highway One, Napa