United Kingdom

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United Kingdom - Great Southern Touring Route Australia

United Kingdom

Market Profile

2011


UNITED KINGDOM

Market Overview

1.1 Market Overview

There was $3.184 billion in total

expenditure from the United

Kingdom in 2010. The Tourism

Industry Potential estimates that

the United Kingdom market has

the potential to grow to between

$5.479 billion and $6.675 billion in

total expenditure by 2020.

In 2010:

> > The United Kingdom was

Australia’s second largest

inbound market for visitor

arrivals. There were 646,668

visitor arrivals, a decline of three

per cent compared to 2009. 1

> > The United Kingdom was Australia’s

second largest inbound market for

total expenditure, with $3.184 billion

spent on trips to Australia, a decline

of six per cent compared to 2009.

> > The United Kingdom was Australia’s

second largest inbound market

for visitor nights, with 21,929,314

nights spent in Australia.

> > The United Kingdom was Australia’s

highest ranked inbound market for

dispersed nights, with 8,968,289

nights spent outside Sydney,

Melbourne, Brisbane and Perth.

> > The average length of stay for

visitors from the United Kingdom

was 36 nights, compared to the

global average of 34 nights.

> > The United Kingdom ranked second for

the number of repeat visitors, with 59

per cent of visitors being repeat visitors.

> > The largest purpose of visit segment from

the market was holiday, representing

45 per cent of total arrivals.

> > Of all arrivals from the United Kingdom,

the largest age demographic of

visitors was 60 years and over. 2

Sources:

1

ABS Overseas Arrivals and Departures,

Australia, December 2010

2

TRA International Visitor Survey,

Total Population 1

Major cities 2

(ranked by population)

Language/s

Currency

GST/VAT 3

Annual Leave

Entitlement 4

United Kingdom

62,348,447 (July 2010 est.)

City

> > London

> > Birmingham

> > Manchester

> > Leeds

> > Glasgow

English

Public holidays 5 > > 3 January

British Pounds Sterling (GBP)

Population

12, 500,000

2,650,000

2,625,000

2,250,000

1,430,000

Currently the value- added tax (VAT) 20 per cent (effective from

1 January 2011).

From 1 April 2009, all UK workers have a statutory right to

at least 5 to 6 weeks of paid annual leave. There are 8 bank

holidays per annum which may also be taken as leave or time

off in lieu if employees are required to work those days.

> > 22 April

> > 25 April

> > 29 April (one off)

> > 2 May

> > 30 May

> > 29 August

> > 26 December

> > 27 December

New Year’s Day*

Good Friday

Easter Monday

Royal Wedding Bank Holiday

Early May Bank Holiday

Spring Bank Holiday

Summer Bank Holiday

Christmas Day*

Boxing Day*

*Substitute days

Weather 6 > > The United Kingdom has a temperate climate

with warm wet summers (June - August) and

cool wet winters (December- February).

Market Outlook

Visa

Sources:

1

The World Factbook (Accessed 16 November 2010)

2

City Population (Accessed 27/01/2011)

3

International VAT Services

4

Work Smart UK

5

Time and Date.com: 2011 Public Holidays UK

6

World Travel Guide UK Climate

> > Temperatures range from 0°C in winter

to 32°C in summer. October to January is

generally the wettest period of the year.

For economic, political and market outlooks, please refer to

the United Kingdom profile, published by the Department of

Foreign Affairs and Trade.

For information on visa requirements for the United Kingdom,

please visit the British High Commission.

December Quarter 2010

2 UNITED KINGDOM Market Profile | Market Overview


UNITED KINGDOM

Market Performance

2.1 Arrivals Trends

There were 646,668 visitor arrivals

from the United Kingdom in

calendar year 2010, down three

per cent from the previous year.

Overall market performance was

brought down by an eight per cent

decrease in the holiday segment

which represents 45 per cent of all

arrivals from the United Kingdom

to Australia.

Significant events affected United

Kingdom visitor numbers in 2010, such

as the Icelandic volcanic ash cloud and

a weak economic environment.

The snow chaos and resulting shutdown

of European airports in December 2010

impacted arrivals figures however this

was mitigated with extra arrivals from the

United Kingdom for the 2010/11 Ashes

cricket series.

After a strong performance earlier in 2010,

the visiting friends and relatives (VFR)

segment finished the year down one per

cent. This segment grew to 40 per cent of all

visitors from the United Kingdom.

Demographically, the 45 years and over

segment has grown as a proportion of all

United Kingdom visitors.

The youth segment was resilient during

the height of the global financial crisis,

but declined in 2010. This correlates with

the softening in working holiday maker

visa grants from July to November 2010,

highlighting the growing competition from a

range of destinations for the youth traveller.

The business segment performed strongly

in 2010, up 14 per cent, which is in line with

the global rebound in this sector.

The value of the Australian dollar against

the British pound remains strong, sparking

feedback from distribution partners that

this will impact brochure prices and sales.

The United States remains the biggest

competitor as the pound strengthens

against the United States dollar.

The growth of outbound Australian

travellers has put pressure on the available

air capacity from Europe. This also drove up

the price of flights from Europe to Australia.

800,000

History of Arrivals from United Kingdom into Australia

Source: ABS Overseas Arrivals & Departures

700,000

Total Arrivals per Year

600,000

500,000

400,000000

300,000

200,000000

100,000

0

Dec80 Dec82 Dec84 Dec86 Dec88 Dec90 Dec92 Dec94 Dec96 Dec98 Dec00 Dec02 Dec04 Dec06 Dec08 Dec10

UNITED KINGDOM Market Profile | Market Overview

3


UNITED KINGDOM

Market Performance

2.2 Australia’s Market Share

Australia’s Market Share of the United Kingdom’s Total Outbound

> > Outbound travel from the United Kingdom has increased from 56.8 million trips in 2000, to

57.1 million in 2010 (forecast based on partial data updated on 2 December, 2010).

> > Australia’s share of the United Kingdom total outbound market has increased

marginally from 1.0 per cent in 2000, to 1.1 per cent in 2010.

100,000

United Kingdom Total Outbound & Australia's Market Share

Source: Tourism Economics (Tourism Decision Metrics)

56,837

58,281

59,377

61,424

64,194

66,494

69,536

69,450

69,011

58,614

57,127

1.0%

1.1%

1.1%

1.1%

1.1%

1.1%

1.1%

1.0%

1.0%

1.1%

1.1%

2.0%

Outbound Travellers lers (000s)

50,000000

1.0%

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (f)

Total Outbound (000s) Australia's Share of Total Outbound (%)

Note: 2010 is a forecast value

0.0%

Top Five Outbound Destinations

> > In 2010, the top five outbound destinations were Spain, France, the United States, Italy and Ireland.

> > Australia ranked 19th among all outbound destinations.

18,000

Top Outbound Destinations from United Kingdom

Source: Tourism Economics (Tourism Decision Metrics)

16,000

Outbound und Travellers (000s)

0s)

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

Spain France United States Italy Ireland Australia

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (f)

Note: 2010 is a forecast value

4 UNITED KINGDOM Market Profile | Market Overview


UNITED KINGDOM

Market Performance

Australia’s Market Share of Out-of-Region Travel

> > Travel outside of Europe, North Africa and Dubai has increased from 13.3 million trips in 2000,

to 15.2 million in 2010 (forecast based on partial data updated on 2 December, 2010).

> > Australia’s share of the United Kingdom out-of-region outbound has

decreased from 4.4 per cent in 2010 to 4.2 per cent in 2010.

Outbound Out of Region Travellers (000s)

20,000

10,000000

United Kingdom Out of Region Outbound & Australia's Out of Region Market Share

Source: Tourism Economics (Tourism Decision Metrics)

13,276

12,733

12,602

12,564

14,353

15,269

15,804

16,852

17,080

15,251

15,228

4.4%

4.8%

5.1%

5.3%

4.7%

4.6%

4.6%

4.1%

3.9%

4.3%

4.2%

7.0%

0

0.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (f)

Total Outbound (000s) Australia's Share of Total Outbound (%)

Note: 2010 is a forecast value

Top Five Out-of-Region Destinations

> > In 2010, the top five destinations for Brits outside of Europe, North Africa and

Dubai were the United States, Thailand, Canada, India and Australia.

> > Australia ranked 5th among out-of-region outbound destinations.

Top Outbound Out of Region Destinations from United Kingdom

Source: Tourism Economics (Tourism Decision Metrics)

5,000

Outbound Out of Region Travellers (000s)

0s)

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

United States Thailand Canada India Australia South Africa

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (f)

Note: 2010 is a forecast value

UNITED KINGDOM Market Profile | Market Overview

5


UNITED KINGDOM

Market Performance

2.3 Main Purpose of Visit and Age

Visitors from the United Kingdom by Age and Purpose of Visit for 2010

Source: Australian Bureau of Statistics, Overseas Arrivals & Departures

Total United Kingdom

646,668 (100%)

+

-

Other

20,639 (3%)

+ -

Employment

19,414 (3%)

+

-

Total Number of Visitors

Education

3,851 (1%)

+ -

Business

52,435 (8%)

+

-

Visit Friend/ Relatives

259,734 (40%)

+

-

Holiday

290,595 (45%)

+

-

Under 15yrs 15 to 29yrs 30 to 44yrs 45 to 59yrs 60yrs & over

37,774 (6%) 145,034 (22%) 143,190 (22%) 140,487 (22%) 180,183 (28%)

+

+

+

+

+

-

-

-

-

-

Note: Rate of Change charts show year on year changes for 2007 to 2010.

Above the axis line indicates growth, below the axis line indicates decline.

6 UNITED KINGDOM Market Profile | Market Overview


UNITED KINGDOM

Market Performance

2.4 Expenditure and Nights

Average Visitor

Spend $5,658 per trip

Stay 34.4 nights

Spend $164 per night

Purpose of Visit

Holiday

Spend $6,563 per trip

Stay 37.8 nights

Spend $174 per night

Visiting friends

and relatives

Spend $4,037 per trip

Stay 26.7 nights

Spend $151 per night

Business

Spend $5,327 per trip

Stay 17.9 nights

Spend $298 per night

Other

(including education

and employment)

Spend $9,156 per trip

Stay 82.6 nights

Spend $111 per night

Age Groups

15 to 29 years

Spend $6,624 per trip

Stay 58.0 nights

Spend $114 per night

30 to 44 years

Spend $5,335 per trip

Stay 25.5 nights

Spend $209 per night

45 to 59 years

Spend $5,323 per trip

Stay 21.8 nights

Spend $244 per night

60 years & over

Spend $5,197 per trip

Stay 28.1 nights

Spend $185 per night

For more information on international visitors to Australia, see Tourism Research Australia’s International Visitor Profiles.

Source: TRA International Visitors Survey (2006 to 2010)

UNITED KINGDOM Market Profile | Market Overview

7


UNITED KINGDOM

Market Performance

2.5 Dispersal

Nights Spent in Australia by Visitors from United Kingdom

Source: International Visitors Survey, 2006-2010, Average Nights per Year

Darwin

238,585k nights

1% of all nights

Legend

0 to 12,610,600

12,610,600 to 35,875,400

35,875,400 to 76,460,200

76,460,200 to 237,157,400

237,157,400 +

Not available

Cairns

Brisbane

1,541,140k nights

7% of all nights

Gold Coast

Perth

2,936,417k nights

14% of all nights

Sydney

5,623,250k nights

26% of all nights

Adelaide

817,182k nights

4% of all nights

ACT

189,677k nights

1% of all nights

Top 6 Regions Outside Capital Cities

Nights

(000s)

% of Total

Nights

Tropical North Queensland 1,293,513 6%

Gold Coast (QLD) 671,027 3%

Sunshine Coast (QLD) 477,957 2%

Northern Rivers (NSW) 414,602 2%

Whitsundays (QLD) 336,483 2%

Australia's South West (WA) 295,642 1%

Melbourne

2,796,023k nights

13% of all nights

Hobart

163,047k nights

1% of all nights

Note: The above map shows visitor nights spent in tourism

regions, as defined by the Australian Bureau of Statistics.

Please note that there may be one or two key destinations

within the boundaries of each region where the majority

of visitor nights are spent.

8 UNITED KINGDOM Market Profile | Market Overview


UNITED KINGDOM

Market Performance

2.6 Growth Outlook

The Tourism Forecasting Committee

Forecast Issue 2 (November 2010) estimates

that arrivals from the United Kingdom will

increase by 3.4 per cent in 2011 and by

3.0 per cent in 2012, with a compound

annual growth rate of 1.9 per cent between

2009-2014.

The 2020 Tourism Industry Potential is

a rallying call to Australian industry and

governments to focus on increased returns

from the tourism industry. The Potential,

focused on overnight visitor expenditure,

sets scenarios for growth for priority

markets that exceed TFC forecasts. Globally,

by 2020 the Potential for Australian tourism

is estimated to be between $115 billion and

$140 billion in overnight expenditure.

There was $3.184 billion in total

expenditure from the United Kingdom

in 2010. The Tourism Industry Potential

estimates that the United Kingdom market

has the potential to grow to between

$5.479 billion and $6.675 billion in total

expenditure by 2020.

$140 billion

Australian

Tourism

by 2020

Global Potential for Overnight Tourism Expenditure in Australia by 2020

Source: International Visitors Survey & projection by BDA Marketing Planning

$150

Trend

Potential

$130

$Billions, nominal

$110

$90

$70

$50

$30

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

UNITED KINGDOM Market Profile | Market Overview

9


UNITED KINGDOM

Aviation

3.1 Aviation Summary

> > Despite new services and interline

agreements, overall capacity from

the United Kingdom to Australia

decreased slightly in 2010. Volcanic

ash disruptions also severely affected

the market in the middle of 2010.

> > The Kangaroo route (United Kingdom to

Australia) remained highly competitive

with a number of airlines offering a

range of different routes and airfares

to all Australian capital cities.

> > Qantas and Singapore Airlines

introduced services between the

United Kingdom and Australia on the

A380, increasing their capacity.

> > Emirates commenced daily A380

Manchester to Dubai services from

September 2010. Virgin Blue’s interline

Manchester

London: QF*(28)

BA*(14) VS(7)

London Gatwick,

Glasgow,

Newcastle and

Birmingham

Doha

Abu

Dhabi

Dubai

agreements with Etihad and

Emirates helped make international

and domestic flight bookings

more seamless for travellers.

> > Qatar Airways significantly increased

capacity on the route when it launched

its first Australian daily service between

Doha and Melbourne in December 2009.

> > Key aviation related challenges and

risks in the market include rising

fuel prices and the United Kingdom

government’s Air Passenger Duty,

which rose in November 2010.

> > According to the International Air

Transport Association (IATA), despite the

increase in airfares in 2010 compared to

2009, airfares were still lower than 2008

airfares across nearly all service classes.

Kuala

Lumpur

Singapore:

QF(14) BA(7)

Seoul

Hong Kong:

QF(7 VS(7)

Bangkok:

QF(7), BA(7)

Sydney: QF(14)

BA(14) VS(7)

Melbourne: QF(14)

Aviation Summary

Major carriers

Qantas, Emirates,

Singapore

Seasonal peaks December to

March

Direct seats

(calendar year 2010)

Load factors

(calendar year 2010)

Percentage change

in average airfares

Nov 2010 against

Nov 2009

Percentage change

in average airfares

Nov 2010 against

Sep 2008

779,000 seats

(-4%)

83% (-2%)

33%

-10%

Sources:

Department of Immigration and Citizenship

Bureau of Infrastructure, Transport and

Regional Economics

International Air Transport Association

Key

( ) Direct services per week

QF: Qantas, BA: British Airways, VS: Virgin Atlantic

*Qantas and British Airways code share and

co-ordinate schedules on this route

Source: International Air Transport

Intelligence, AirportIS Northern

Summer (27 March 2011-29 October 2011)

2011 schedules and Origin Destination

traffic for year ended November 2010

10 UNITED KINGDOM Market Profile | Market Overview


UNITED KINGDOM

Aviation

Key airlines and share of passengers in 2010

United Kingdom Seats by Carrier

Year End Dec10

Airline 2006 2007 2008 2009 2010

Qantas 31% 31% 29% 28% 27%

Emirates 17% 19% 18% 21% 21%

27% 21%

Singapore Airlines 15% 14% 15% 12% 11%

Cathay Pacific 5% 5% 7% 7% 7%

British Airways 7% 7% 6% 7% 6%

11%

Malaysia Airlines 7% 5% 3% 3% 5%

17%

Jetstar 2% 4% 4% 4% 4%

7%

Etihad 0% 1% 2% 4% 4%

4% 4% 5%

6%

Other 16% 15% 16% 15% 17%

Table includes direct and indirect capacity.

Source: Department of Immigration and Citizenship

3.2 Aviation Forecast

> > Growth is forecast in 2011 with Qantas

introducing additional A380 services.

British Airways growth is largely related

to spot cancellations that occurred in

early 2010, boosting the 2011 figures.

> > AirAsia-X’s London Stansted to Kuala

Lumpur services are reporting 80 per

cent load factors and the airline has

introduced business class flatbeds

on the United Kingdom to Australia

> > Etihad added capacity on the

route. However the carrier suspended

Airline

2006 2007 2008 2009 2010

Manchester to Abu Dhabi route through plans to launch Manchester services in

aircraft changes by replacing A330s

2011 due to the recent increase in the

1 Qantas

31% 31% 29% 28% 27%

with B777s and plans to increase

United Kingdom Air Passenger Duty.

2 Emirates

frequencies in August 2011.

17% > > 19% to lose market

18% 21% 21%

share of total capacity out of the United

3 Singapore Airlines

15% Kingdom, as Europe 14% regains lost capacity. 15% 12% 11%

4

5

Cathay Pacific

British Airways

Strong growth from the United Kingdom

5% is expected to the 5% United States, Egypt 7%

and a number of other destinations.

7% 7% 6%

7%

7%

7%

6%

6 Malaysia Airlines

7% 5% 3% 3% 5%

7 Jtt Jetstar

2% 4% 4% 4% 4%

8 Etihad

0% 1% 2% 4% 4%

9 Other

16% 15% 16% 15% 17%

10 Total

100% 100% 100% 100% 100%

UNITED KINGDOM Market Profile | Market Overview

11


UNITED KINGDOM

Distribution

4.1 Distribution System

The United Kingdom distribution system has undergone significant change and consolidation in recent years.

A large proportion of sales to Australia are handled by a few key operators who specialise in selling Australia.

Telephone and in-store remain the key booking channels for long haul travel, however there is some growth in

online bookings for Australia in the visiting friends and relatives and business segments.

Wholesalers/ Large Operators/ Agents

Commission Level: 20% to 30%

> > There are over 100 tour operators

selling Australia throughout the United

Kingdom, however a large proportion

of sales to Australia are handled by

a few key specialist operators.

> > Tour operators vary from traditional

wholesalers to companies that

combine various wholesale, direct,

online and retail channels.

> > Direct sellers have been a key feature of

the United Kingdom market and have

traditionally dominated sales to Australia,

although overall numbers are decreasing

as a result of industry consolidation.

> > Trailfinders and STA Travel are major

retail direct sellers in the market. Other

operators sending significant numbers

of passengers to Australia include

Thomas Cook Scheduled Businesses

(incorporating Gold Medal) and Flight

Centre who both own wholesale, retail

and flight consolidating businesses.

Special Interest

> > STA Travel is the leading backpacker and

youth travel specialist for Australia.

> > Key operators specialising in the luxury

segment include Bridge and Wickers,

Turquoise Holidays and Seasons.

Retail Agents

Commission Level: 10 %

> > The United Kingdom has over 5,000

Association of British Travel Agents

(ABTA) member travel agencies.

> > Retail agents generally have a basic

knowledge of Australia, largely due to the

Commonwealth, sporting and historical

ties that Australia shares with Britain and

the coverage of Australia in the media.

> > Thomas Cook and TUI Retail (Thomson

and First Choice) are the largest retail

chains in the United Kingdom.

Online

> > The majority of sales through Online

Travel Agencies (OTAs) are for direct

flights and accommodation bookings.

> > OTAs offer limited capability to

transact complete Australian holidays

online. Multi-stop itineraries and

true dynamic packaging cannot be

purchased online through any OTA in

the United Kingdom at this stage.

> > The major United Kingdom online

travel agencies are Expedia,

Lastminute.com and Opodo.

Aussie Specialists

> > The Aussie Specialists Program (ASP)

is the primary platform for Tourism

Australia to train and develop

retail agents to sell Australia.

> > Series partner programs available on

the Aussie Specialist Program platform

in the United Kingdom include AAT

Kings, Gold Medal, Qantas Holidays,

Travel 2, Thomas Cook, Thomson,

Kuoni, Seasons in Style, Worldchoice,

Voyages, Qantas and Emirates, as well

as state and territory modules.

> > As at March 2011, there were

2,340 qualified Aussie Specialist

agents in the United Kingdom.

Inbound Tour Operators

Commission Level: Up to 30 %

> > There are several inbound tour operators

(ITOs) active in the United Kingdom

market; ranging from mainstream

wholesalers through to operators

targeting specialist segments and niches.

> > AOT Travel, ATS Pacific, Qantas

Holidays, Tour East Australia and

Southern World Travel all service

the United Kingdom market. The

Tailor (aka Outback Encounter) and

Southern Crossings are also active in

the market with high-end agents.

Business events

> > The majority of conference and incentive

travel from the United Kingdom is

booked through specialist conference

and incentive travel agencies. Over

the past few years, many corporate

companies have closed down in-house

teams and outsourced this business.

> > Destination Marketing Companies

(DMC) are still widely used for larger

groups with an extensive ground

program, however, they must be able to

demonstrate value for money to their

clients otherwise agencies will book

directly with hotels and restaurants.

> > The key United Kingdom conference

and incentive travel agencies, based

on turnover, are Motivcom, CI Events,

Universal Procon, Jack Morton Worldwide,

Grass Roots Eventcom and World Events.

12 UNITED KINGDOM Market Profile | Market Overview


UNITED KINGDOM

Distribution

Brochures and Rates

Brochures and Rates

Brochure Validity > > Brochures are valid for 12 months, generally 1 April to 31 March.

Brochure

Space Policy

> > Most industry partners require financial support

to secure inclusion in their brochure.

Setting Rates > > Rates are set from June to July.

Standard Rate

Validity Periods

> > The standard rate validity period is from 1 April to 31 March.

Seasonality

> > The peak booking period for travel to

Australia is January to March, followed

by September to November. July to

August is the British summer holidays

and bookings taken during this period

are influenced by the weather.

> > The peak travel period to Australia

is December to March.

Seasonality of United Kingdom Arrivals

Source: ABS Overseas Arrivals & Departures, 2006 to 2010

Variation from Monthly Average Arrivals

120%

more than

the

average

60%

0%

-60%

less than

the

average

-120%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

All Purposes Leisure Business Other

Avg: 56,764 Avg: 49,160 Avg: 4,269 Avg: 31,198

4.2 Trends

Distribution

> > As the travel industry continues to

explore opportunities to grow revenue

and consumers go on-line for their

short-haul travel bookings, Australia

is becoming a key destination for

wholesalers and travel agents.

> > To adapt to the changing distribution

landscape, major retail agencies have

invested in direct selling channels, such

as call centres and online sites. For long

haul travel, retail agents remain an

important channel for consumers.

> > Vertical integration, consolidation and

globalisation continue to be key trends in

the retail travel sector. There is a growing

influence of pan-European and global

travel groups in the United Kingdom

market. Two of the biggest operators in

the United Kingdom retail sector, Thomas

Cook and Thomson Travel, are now

owned by German companies Thomas

Cook AG and TUI AG, respectively.

> > The number of United Kingdom

retail outlets has declined due to

consolidation, as major groups buy

smaller independent chains. Some

smaller travel agents have struggled in

the increasingly competitive environment

and in difficult economic conditions.

UNITED KINGDOM Market Profile | Market Overview

13


UNITED KINGDOM

Distribution

Planning and Purchase of Travel

> > Online distribution is changing booking

behaviour for United Kingdom consumers,

and rapid growth in online bookings

is predicted in coming years. However,

this is having a much greater impact

on short haul than long haul travel.

> > Whilst there has been some growth in

online sales for long haul destinations

including Australia, the majority of these

customers are repeat visitors (expatriates

and the visiting friends and relatives

segment) and business travellers.

> > Of the United Kingdom passengers

that book some part of their Australian

holiday online, the three most popular

items were international airfares (35

per cent), accommodation (20 per cent),

and domestic airfares (12 per cent). 1

> > Despite the growth of online, there has

also been a significant shift back to retail

agents for holiday bookings, as British

consumers look for more protection.

The failure of several tour operators and

charter airlines, plus airline strikes and

events such as the Icelandic volcanic ash

disruption, have reinforced the benefits

of booking with licensed operators.

> > A study commissioned by Tourism

Australia showed that whilst online

planning and booking for travel to

Australia was increasing, retail agencies

remain the key booking channel due to:

• the relative complexity of

travel to Australia;

• the perceived authority and

security offered by a retail agent;

• previous positive experiences

with retail agents;

• consumer protection laws;

• responsibility for passengers in

extreme circumstances such

weather, airline strikes etc;

• affluent, older travellers being

less likely to use the internet. 2

> > Australia has traditionally had long lead

booking times due to the perceived

complexity of the purchase in terms of

time, cost and distance. Lead times for

booking international travel decreased

in 2009, with economic uncertainty and

last minute deals prevalent in the market.

However, operators are starting to report

a gradual return to longer lead times.

4.3 Planning a Visit to market

> > Tourism Australia and the State and

Territory Tourism Organisations (STOs)

have developed an online manual to assist

Australian product suppliers in planning

and carrying out independent sales call

trips to the United Kingdom and Ireland.

Go to www.destinationaustralia.uk.com

to use this resource.

> > It can take many years of sales calls to

trade partners to get listed in

their brochures.

> > The best time of year for sales calls is from

March to June, September to October

and December. Try to avoid the holiday

period from mid-June to mid-August.

> > The key market centre to visit is London,

as the majority of specialist operators

to Australia are located here. Some

operators are located in Manchester

and around Gatwick airport.

> > For more general information on

sales calls and planning a visit to

market, please see Tourism Australia’s

Planning for Inbound Success.

4.4 Key Trade and Consumer Events

Key Trade and Consumer Events

Event Location Date

New Product Workshop London February

Corroboree Europe Darwin June 2011

World Travel Market (WTM) London November

State and Territory Tourism Organisation Trade Missions Various Various

Sources: 1 International Visitor Survey, June 2010. 2 Optimising Opportunities from the UK to Australia, UK Passenger Study, September 2008 (study commissioned by

Tourism Australia)

14 UNITED KINGDOM Market Profile | Market Overview


UNITED KINGDOM

Contacts

Tourism Australia

Tourism Australia’s activities in the United

Kingdom are managed from the Tourism

Australia London office.

Tourism Australia

6th Floor Australia Centre

Melbourne Place / The Strand

London WC2B 4LG

Tel +44 20 7438 4601

Fax +44 20 7240 6690

For trade enquiries please contact

Ben Janeczko (in the UK)

Tel + 44 20 7438 4612

bjaneczko@tourism.australia.com

State and Territory

Tourism Organisations

South Australian Tourism Commission

6th Floor Australia Centre

Melbourne Place / The Strand

London WC2B 4LG

Tel +44 207 438 4636

Tourism New South Wales

6th Floor Australia Centre

Melbourne Place / The Strand

London WC2B 4LG

Tel +44 20 7438 4644 or 4643

Fax +44 20 7240 6690

Tourism Northern Territory

6th Floor Australia Centre

Melbourne Place / The Strand

London WC2B 4LG

Tel +44 20 7438 4641

Fax +44 20 7379 9681

Tourism Queensland

Colechurch House

1 London Bridge Walk

London SE1 2SX

Tel +44 207 367 0900

Fax +44 207 407 3810

Tourism Tasmania

C/- Juicy Communications Limited

6th Floor Australia Centre

Melbourne Place / The Strand

London WC2B 4LG

Tel +44 153 472 8728

Fax +44 207 438 4615

Tourism Victoria

6th Floor Australia Centre

Melbourne Place / The Strand

London WC2B 4LG

Tel +44 207 438 4645

Fax +44 207 240 6690

Tourism Western Australia

6th Floor Australia Centre

Melbourne Place / The Strand

London WC2B 4LG

Tel +44 207 438 4647

Fax +44 207 240 6690

Austrade

Australia House

The Strand

London WC2B 4LA

Tel +44 20 7632 0000

Fax +44 20 7632 0098

UNITED KINGDOM Market Profile | Market Overview

15

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