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TOURISM WESTERN AUSTRALIA MARKETING FORUM 2015 Germany & Switzerland PRESENTED BY: Rhett Lego

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Page 1: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

TOURISM WESTERN AUSTRALIA

MARKETING FORUM 2015

Germany & Switzerland

PRESENTED BY: Rhett Lego

Page 2: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Team Germany

Rhett Lego Andreas Schunck Cornelia Eisenreich

Strategic Director Marketing Manager PR Manager

Head office contact person:

Beppie Stoffels – International Market Manager - UK, Germany, New Zealand

[email protected]

Page 3: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Agenda1. Market status

2. Target Audience

3. Challenges

4. Market Trends

5. Market Strategies – Trade, Consumer and PR

6. Market opportunities

Page 4: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Germany Market Profile

VISITOR Dispersal

Germany has the highest dispersal rate of any

of TWA’s international markets.

Source: TWA International Market Profiles

422/04/2015

Page 5: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Source: Tourism Research Australia, International Visitor Survey

YE: Year Ending. YOY: Year on Year

Germany Visitors to Western Australia

Year on Year Change

0.0%

-8.8%

8.5%

2.1%

9.4%

-13.7%

4.8%

8.4%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

-15%

-10%

-5%

0%

5%

10%

15%

YE Sep.'07

YE Sep.'08

YE Sep.'09

YE Sep.'10

YE Sep.'11

YE Sep.'12

YE Sep.'13

YE Sep.'14

Vis

ito

rs

YO

Y %

ch

an

ge

% Change (year on year) Visitors

522/04/2015

Page 6: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Germany Visitor Spend in Western Australia Year on Year

Change

Source: Tourism Research Australia, International Visitor Survey

YE: Year Ending. YOY: Year on Year

31.2%

44.0%

-41.5%

10.6%

26.8%

-17.0%

23.6%

1.8%

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

YE Sep.'07

YE Sep.'08

YE Sep.'09

YE Sep.'10

YE Sep.'11

YE Sep.'12

YE Sep.'13

YE Sep.'14

Sp

en

d (

$ m

illio

n)

YO

Y %

ch

an

ge

% Change (year on year) Spend ($ million)

622/04/2015

Page 7: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Germany Visitors to Western Australia

Seasonality

Source: Department of Immigration and Border Protection (State of Intended Residence: WA, Category of Traveller: Short Term

Visitor Arrival)

YE: Year Ending

0

500

1,000

1,500

2,000

2,500

Octo

ber

No

vem

be

r

De

cem

be

r

Ja

nu

ary

Fe

bru

ary

Ma

rch

Apri

l

Ma

y

Ju

ne

Ju

ly

Aug

ust

Sep

tem

be

r

Mo

nth

ly A

rriv

als

YE Sep-12 YE Sep-13 YE Sep-14

722/04/2015

Page 8: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Germany Visitors - Purpose of Visit

Year Ending September 2014

Source: Tourism Research Australia, International Visitor Survey

YE: Year Ending. YOY: Year on Year

% of visitors to Australia / Western Australia

75%

29%

11%

5% 5%

80%

17%11%

1% 4%

Holiday/leisure VFR Business Education Employment

Australia Western Australia

822/04/2015

Page 9: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

30%

27%

12%

13%

12%

6%

57%25%

18%

15 - 24

25 - 34

35 - 44

45 - 54

55 - 64

65+

Australia Western Australia

Source: Tourism Research Australia, International Visitor Survey

% of visitors to Australia / Western Australia

Germany Visitors – Age

Year Ending September 2014

30%

27%

16%

15%

7%5%

57%31%

12%

922/04/2015

Page 10: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Switzerland Visitors to Western Australia

Year on Year Change

Source: Tourism Research Australia, International Visitor Survey

YE: Year Ending. YOY: Year on Year

-6.9%

5.8%

-4.7%

-19.7%

27.6%

-20.8%

0.0%

16.2%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

-30%

-20%

-10%

0%

10%

20%

30%

YE Sep.'07

YE Sep.'08

YE Sep.'09

YE Sep.'10

YE Sep.'11

YE Sep.'12

YE Sep.'13

YE Sep.'14

Vis

ito

rs

YO

Y %

ch

an

ge

% Change (year on year) Visitors

1022/04/2015

Page 11: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Switzerland Visitor Spend in Western Australia

Year on Year Change

Source: Tourism Research Australia, International Visitor Survey

YE: Year Ending. YOY: Year on Year

4.7%

-2.3%

-15.1%-13.3%

33.9%

-19.3%-22.9%

17.4%

$0

$5

$10

$15

$20

$25

$30

$35

$40

-30%

-20%

-10%

0%

10%

20%

30%

40%

YE Sep.'07

YE Sep.'08

YE Sep.'09

YE Sep.'10

YE Sep.'11

YE Sep.'12

YE Sep.'13

YE Sep.'14

Sp

en

d (

$ m

illio

n)

YO

Y %

ch

an

ge

% Change (year on year) Spend ($ million)

1122/04/2015

Page 12: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Switzerland Visitors to Western Australia

Seasonality

Source: Department of Immigration and Border Protection (State of Intended Residence: WA, Category of Traveller: Short Term

Visitor Arrival)

YE: Year Ending

0

200

400

600

800

1,000

1,200

1,400

1,600

Octo

ber

No

vem

be

r

De

cem

be

r

Ja

nu

ary

Fe

bru

ary

Ma

rch

Apri

l

Ma

y

Ju

ne

Ju

ly

Aug

ust

Sep

tem

be

r

Mo

nth

ly A

rriv

als

YE Sep-12 YE Sep-13 YE Sep-14

1222/04/2015

Page 13: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Switzerland Visitors - Purpose of Visit

Year Ending September 2014

Source: Tourism Research Australia, International Visitor Survey

YE: Year Ending. YOY: Year on Year

% of visitors to Australia / Western Australia

74%

33%

12% 10%

70%

33%

11%

4%

Holiday/leisure VFR Business Education

Australia Western Australia

1322/04/2015

Page 14: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

18%

31%

16%

16%

9%

10%

49%

32%

19%

15 - 24

25 - 34

35 - 44

45 - 54

55 - 64

65+

Australia Western Australia

Source: Tourism Research Australia, International Visitor Survey

% of visitors to Australia / Western Australia

Switzerland Visitors – Age

Year Ending September 2014

15

–3

4 y

rs

10%

35%

23%

25%

3% 4%

45%

47%

8%

1422/04/2015

Page 15: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Germany and Switzerland combined

by visitors YE Sep 2014

Country of Residence Rank YE Sep-13 YE Sep-14 % Change

UK 1 140,900 154,100 +9.4%

Singapore 2 60,700 78,800 +29.8%

NZ 3 80,300 75,700 -5.7%

Malaysia 4 59,700 67,000 +12,2%

USA 5 49,900 56,200 +12.6%

GER / CH 6 38,400 42,400 +10.4%

China 7 33,100 37,400 +13.0%

Indonesia 8 26,600 30,000 +12,8%

1522/04/2015

Page 16: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Target AudienceGermany has a population of 82m who take 60m + holidays a year. Switzerland has a population of 8.2m who are also inveterate travellers.

Primary Audience: Experience Seeker (aged 30 -59), Self-drive adventurers, travellers wanting to see world class beauty and the natural environment.

Secondary Audience: Young travellers (aged 18-29) and working holiday makers

Page 17: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Market Challenges• Australia is ranked 2nd (after USA) on the intent to travel list for

German travellers. However there is a large gap between intent and actual travel.

• Australia and especially Western Australia is considered an expensive destination.

We need to create urgency to travel now due to the positive exchange rate, cheaper flights and lower ground costs. Travel to Australia (cost of airfares) in real terms has never been cheaper.

Cheaper ground costs are being felt now due to downturn in the mining sector combined with new hotel and product development.

The strongest growth market in Germany is the WHV travellers. This opens further opportunity to target parents and friends of working holiday makers.

Page 18: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Market Challenges• Australia (TA & STO’s) is outspent by our competitor NTO’s

A strong partnership strategy with airline, TA and other STO’s, wholesale partners and media is key and will help increase and leverage local funding.

Stronger EUR : AUD and CHF : AUD exchange rates. Australia has become more competitive again due to a weakening Australian Dollar, more buying power for the Euro and CHF on the ground in Australia and cheaper cost of holidays and airfares.

Page 19: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

MARKET: GERMANY & SWITZERLAND

Partner Contribution

1922/04/2015

Page 20: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Germany (DE) and Switzerland (CH) Market Trends

• WA sees continued solid growth out of DE (8.4% WA v

10% Aust) and CH (16.2% WA v 4.3% Aust)

• Average length of stay for DE visitors to Australia is 47

nights and for CH 53 nights.

• The DE and CH markets are renowned for their high

regional dispersal. DE is ranked 3rd and CH 1st in

terms of number of dispersed nights (TA Stats).

• Strong DE and CH economies - Record tax revenues,

low unemployment, and increased business confidence.

The recent +20% revaluation of the CHF makes

outbound travel 20% cheaper for Swiss travelers.

Page 21: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Germany and Switzerland Market Trends

• The AUD : EUR was strongest in 2012 (0.86). Since mid

2012, the buying power of the EUR has strengthened to

0.71 making Australia some 17.5% cheaper as a holiday

destination.

• Trade remains the most important distribution channel

with roughly 80% of all bookings handled by Travel

Agents.

• DER Touristik is pushing 2015 as the year of long-haul

travel. Due to early purchase of foreign currency, DER

Touristik was able to set lower prices.

• FTI Touristik has moved Product management to Zurich

for modular long-haul product and established FTI AG.

Page 22: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Germany and Switzerland Market Trends

• Boomerang / TUI synergies: Boomerang now has

access to some 10,000 TUI agents selling to TUI’s high

yield clientele via their new Meine Reise system

• Long haul competitors for Australia remain strong (South

Africa, USA, Canada and NZ)

• Airline access to WA out of Europe remains the

strongest ever and with strong load factors

• Social media continues to become a core facet of

German life since ca 2013 with 60% of every age group

now prepared to use social sites for private purposes.

Facebook is used by 83% of German users (Source:

eMarketer.com)

Page 23: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Germany and Switzerland Goals

• Build upon greater awareness of destination appeal with

ASP, main Wholesale partners and marketing activities to

deliver more pax to WA

• Position WA as the premier self-drive destination in

Australia

• Create urgency to travel now to WA because of the

positive exchange rate, cheaper flights and lower ground

costs.

• Establish a German language Social media presence and

WA.com providing a better, more effective destination

coherence with the consumer.

Page 24: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Market StrategiesPRIORITY Strategy

CONSUMER 1. Continue to promote regional dispersal through marketing campaign activities and compelling media stories.

2. Attend selected consumer events in conjunction with wholesale partners.3. Drive media exposure particularly Indigenous, Luxury and Food & Wine.4. Media focus on special interest and lifestyle publications, daily newspapers and development of

blogger relations.5. Development of German Facebook and German WA.com sites.6. Leverage TA’s ‘One voice’ lead campaigns.7. Leverage key adventure events (Media & PR focus)

TRADE 1. Further leverage key wholesaler relationships and increase partner funding contributions within marketing campaigns.

2. Focus on primary target audience with mainstream wholesale partners.3. Focus on secondary target audience with STA Travel.4. Focus on self-drive adventures and experience seekers with the three direct sellers in market

(BOTG, Boomerang and Explorer).5. Further develop Agent training workshops with main trade partners via improved WA module in

TA’s ASP program.6. Built loyalty with travel agents and product managers by hosting trade famils

AVIATION 1. Key Aviation partners remain SQ, EY, EK, QF and QR.2. Drive tactical campaigns within the airline CMA’s in conjunction with key trade partners and DAP

Partners.3. Development of Airline relationships to provide media/trade famil tickets

2422/04/2015

Page 25: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Consumer and Trade ActivitiesRelevant

Strategy area Key Activity

Timing by quarter

Description

AviationEY CMA - preferred trade partner DER Touristk or FTI

Q2-Q3 Consumer and trade marketing activities

AviationSQ CMA - preferred trade partner DER Touristik, TNT

Q2-Q3 Consumer and trade marketing activities

Trade Boomerang Reisen / TUI Q2-Q3 Consumer and trade marketing activities, Film and YouTube project

TradeDeuter Coop - preferred trade partner Explorer Fernreisen

Q2-Q48-12 page flyer including travel packages plus raffle. Winner trip for two couples, one journo and one Deuter rep.

Trade Best of Travel Group Q3Update and reprint of the 44 page self-drive brochure and self-drive famil Savannah Way West in conjunction with TNT in May 2016

TradeKnecht Reisen , Etihad and TNT Coop

Q2-Q4Consumer and trade marketing activities (Raffle, Online, Mega banner, OoH, Radio)

Trade STA Travel Q4Famil with 10 agents in May or June 2016 and agent training in summer 2015

Trade TUI Suisse Q3 Consumer and trade marketing activities

Trade Travelhouse Q3 Consumer and trade marketing activities

ConsumerGerman consumer and trade brochure update & reprint

Q1 Bigger format and additional pages for caravan & camping, glamping, NP's, map etc.

Consumer Dreamtime Travel Q2 Reisetag consumer day in Nov 2016

2522/04/2015

Page 26: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Public Relations

• Group Media Fam Coral Coast July 2015 (4 pax + 1 escort)

• Individual Famil 1 (Süddeutsche Zeitung - newspaper -Kimberley Cruise - August 2015)

• Individual Famil 2 (Connoisseur Circle - Luxury mag -Kimberley Aerial Highway - second half of June 2016)

• Individual Famil 3 (Tauchen - diving magazine - Ningaloo? Rowley Shoals? - April/May 2016)

• Individual Famil 4 (dpa - indigenous gourmet experiences)

• Individual Famil 5 (VOGUE - female lifestyle mag) ?

• Individual Famil 6 (Die Zeit - newspaper - Lurujarri HeritageTrail)

Page 27: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Event Activity

Key events relevant to the German and Swiss market – e.g.

Adventure experiences such as Cape to Cape MTB, Red Bull

Lighthouse to Leighton, the Drug Aware Margaret River Pro and

Food & Wine experiences such as the Margaret River Gourmet

Escape will be serviced via our (ongoing) PR focus.

Page 28: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

How to enter the German and Swiss markets

• TWA Germany/Switzerland Roadshow in 2016• European New Product Workshop to be held in London in

April 2016• ITB March 2016• Corroboree 2017 (300 European ASP agents attending)• TCMG bi-monthly trade newsletter (product updates or new

product)• Aussie Specialist monthly German speaking newsletter • Press releases• New WA.com website – German version • New TWA German Facebook page

Page 29: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Examples Marketing Activities 2014/15

Page 30: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Examples Marketing Activities 2014/15

Page 31: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Examples PR Activities 2014/15

Page 32: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

Examples PR Activities 2014/15

Page 33: Germany & Switzerland - Tourism Western Australia Library... · Market Trends •WA sees continued solid growth out of DE (8.4% WA v 10% Aust) and CH (16.2% WA v 4.3% Aust) •Average

QUESTIONS