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1 September 2013 Visit California Monthly Activity Report - AUSTRALIA Gate%7%'%AUSTRALIA% %%%%%% %%%%%%

2 TABLE OF CONTENTS Table of Contents AUSTRALIAN MARKET OVERVIEW... 3% Economy... 3% Airline Updates... 4% Wholesale Updates... 5% Consumer Updates... 7% OTA Update... 9% Visitcalifornia.com.au Updates... 10% Social Media... 13% CONSUMER MARKETING CAMPAIGNS... Error! Bookmark not defined.% Marketing Plan 2012/ Error! Bookmark not defined.% PR HIGHLIGHTS... 15%

3 AUSTRALIAN & NZ MARKET OVERVIEW Economy Australia Economy CURRENT STATS PREVIOUS MONTH & LY Unemployment Rate 5.8 % in Sep 2013 (5.8 % Sep,13 5.4% Oct,12) Consumer Price Index in Q (102.8 Q2, Q4,12) GDP Growth 2.6% in Q (2.6% Q3,13 3.1% Q4,12) New Zealand Economy CURRENT STATS PREVIOUS MONTH & LY Unemployment Rate 6.4 % in Q (6.4% Q3,13 7.3% Q4,12) Consumer Price Index 1176 in Q (1176 Q2, Q4,12) GDP Growth 2.5% in Q (2.5% Q3,13 2.0% Q4,12) Exchange Rates AUSTRALIA $1 NEW ZEALAND $1 USD $0.93 (Sep 30, 2012: $1.04) USD $0.83 (Sep 30, 2012: $0.83)

4 Airline Updates Delta and Virgin Australia Delta has been granted approval by the US Dept of Transportation to continue codesharing on Virgin Australia s current and future routes within Australia for two more years. The order enables Delta to place its DL code on Virgin metal through until 12 Sep MEANWHILE, Virgin Australia today announced the official launch of its new IFE after a successful trial earlier in the year. Close to 40 VA aircraft operating on domestic & short-haul int l services went live today with the wireless technology, which allows guests to stream content to their smartphones, tablets and laptops. VA said it expects to have all its and Embraer E90 planes equipped with the technology before the end of Qantas Back in Black Qantas Group have achieved an underlying Profit Before Tax of $192 million for the 2012/13 FY, up from $95 million last financial year. Profit after tax was $6 million, a turnaround from a loss of $244 million for the same period 12 months ago, with a key contributor being a $134 million change to accounting estimates for the 'recognition of passenger revenue when tickets have passed their scheduled travel date'. Qantas International losses were halved, however the long-haul arm of the Australian flag-carrier was still in the red, at a loss of $246 million.

5 Wholesale Updates Top 20 flight centre group international retail airfares sold in July 2013 (rank & destination) 1 LONDON 2 AUCKLAND 3 DENPANSAR 4 PHUKET 5 LAS ANGELES 6 BANGKOK 7 NADI 8 NEW YORK 9 HONG KONG 10 SINGAPORE! 11 MANILA 12 PARIS 13 HONOLULU 14 CHRISTCHURCH 15 DUBLIN 16 VANCOUVER 17 QUEENSTOWN 18 ROME 19 LAS VEGAS 20 MANCHESTER JTG announces new helloworld for business Jetset Travelworld Group (JTG) has formed Australia s largest independent premium network of corporate travel experts, with the launch of helloworld for business. JTG has combined the strengths of Travelscene Corporate and JTN Business Select to represent the next generation of corporate travel in Australia, according to JTG head of associate networks David Padman. helloworld for business embraces that independence and the individual approaches of our agencies, while also maximising the value, support and financial reward they receive from being part of one of the most significant travel organisations in the region, Mr Padman said. helloworld for business core focus will be to provide purchasing advantages for agents, as well as business and systems support, while facilitating a network of likeminded corporate contacts. Clients will also gain exclusive access to the helloworld Consumer Protection Policy. Existing Travelscene Corporate and JTN Business Select agents, as well as non-member agencies, can join helloworld for business. The interest in helloworld for business from our corporate agents and from the wider industry has been exceptional, Mr Padman said. The helloworld retail brand was launched earlier this year in July Flight Centre going 24/7 FLIGHT Centre has today unveiled plans to increase its after-hours sales force by more than 60%, after opening two large round-the-clock contact centres in Sydney and Brisbane. Eighty travel consultants are already in place, with the sales force to expand to 130 by 31 Dec this year after a major recruitment drive. Flight Centre Australia gm Tom Walley said the new arrangement would deliver a new level of around-the-clock choice and convenience to leisure travellers. And as well as giving a new 24/7 booking option to clients, the contact centres will also deliver a new career path for travel consultants seeking more flexible working arrangements. Flight Centre has developed a unique blended travel model that allows customers to transact and interact with the brand at the times and via the sales channels of their choice, Walley said. Part of the transition to this new model is enhancing the company s online capabilities as well as ensuring that expert consultants are available outside normal working hours.

6 The contact centres are an important element in this blended travel model and will offer leisure travellers an aroundthe-clock option that simply isn t available elsewhere, he added. The new contact centres will run day and night shifts with very flexible timings to accommodate working parents, carers, students and other people who prefer to work outside of standard business hours, he said. Day shifts will typically start between 5am and 11am and run for eight hours, while night shifts will run for 8-10 hours and will start between 5pm and 8pm. APT USA stand-alone APT has today unveiled a new standalone brochure for its USA program including the Mississippi River Cruising and West Coast Air Cruising, along with touring. The 28- page program features five tours ranging from nine to 25 days in duration. GM marketing Debra Fox said the launch of a brochure dedicated to the US alone was backed by increased demand for the destination, with the added bonus of making it easier for agents to split the program from its Canada & Alaska product. APT s USA Journeys by Land, River & Air brochure will be on most agency shelves this week. itravel launches network Former Jetset Travelworld Network affiliate itravel has left the group and is seeking agencies to join its own retail franchise network. MD Steve Labroski said yesterday that the company has recognized there is a gap in the market, with itravel s existing retail and mobile travel agent network ideally poised to capitalize on the evolving Australian travel industry. The itravel vision is to continue to present the itravel brand as a boutique style travel advisor, who values service and reputation. This is an exciting opportunity for retail business owners to be a part of a fresh and exciting brand that will offer a high level of support, financial rewards and most of all transparency, he said. It s expected that itravel s proposition will appeal to existing branded franchise agencies, amid major change at JTG with the introduction of the new helloworld brand. itravel currently lists around 40 consultants on its website, most in NSW along with a few in QLD and VIC, and also has a retail outlet in Sydney s Surry Hills. Labroski flagged national expansion for the retail network, with new stores to begin rolling out in NSW shortly before expanding across the country.

7 Consumer Updates Qantas reveals new Ausmerica marketing campaign Qantas Airways has revealed a major new marketing campaign Ausmerica in collaboration with Brand USA, encouraging Australians to hop it to the United States. The new campaign promotes the USA as a destination through which Qantas customers can visit via the airline s extensive network of services to Los Angeles, Dallas and New York. Marketing will be aired across a variety of different media, including television, print, digital channels and outdoor billboards, while the Qantas Travelator will be positioned at Sydney Domestic Terminal 3, showcasing destination images from across the States. We look forward to participants experiencing the breadth of what the USA has to offer by heading to destinations across the USA, Brand USA strategy director Australia and New Zealand Joe Ponte said. Drop in Aussie dollar hasn t affected travel plans A slump in the Australian dollar has had minimal impact on the number of Aussies planning to take a trip to the United States, new Roy Morgan Research shows. From May to Jun, the US is the top destination which Australians desire to visit in the next two years, accounting for 14.2% of votes and reaching a new high. The result is up from 10.4% for the 12 months to Jun 2008.New Zealand (12.6%) and England (12.3%) were the second & third most desired destinations to holiday, followed by France (8.7%) and Italy (7.9%).

8 TRADE ACTIVITY Trade Training - Conducted training at Infinity Holidays Auckland 15 res consultants - Conducted training at House of Travel Auckland (with Christchurch webconferenced in) 20 res consultants - Conducted training at Air NZ Holidays Auckland 8 res consultants - Conducted training at Travelplan Melbourne 5 res consultants Trade Shows/Industry Events - Sponsored and presented at United Airlines Trivia Nights in Auckland, Wellington and Melbourne (over 150 agents) - Attended Vacations & Travel Magazine anniversary event - Attended United Airlines/NBL Season Launch Party Coops - Confirmed ZUJI California Restaurant Month campaign - Planning underway for Travel Associates coop Familiarization Visits - Harvey s Legend famil in planning for October - Talked with Qantas about supporting Luxury famil in March - Talked with House of Travel about supporting Drive famil in June Distribution of (not including training and shows/events): California IVG (Gate 7): 14 California IVG (TIFS i.e. Insider Signup): 168 California Maps: 0 Collateral: 0 Distribution of (training and shows/events): California IVG: 250 Australian California Guide: Collateral:

9 Running Tally 1047 Meetings COMPANY Brand USA Zuji/Webjet MEETING HIGHLIGHTS Met with Joe Ponte to discuss USA ski promotion opportunities for market Met with Danielle Pagano and Michael Zhang to discuss handover of account as Danielle goes on maternity Evergreen Tours Met with Justin Ewin for general catch up Park City Escape Travel Qantas Ski Travel Met with Georgia from GTI Tourism to discuss Park City snow marketing activities Had a conference call with Escape Travel to discuss Family Escapes plan Met with Ashley Howell to discuss JTG/Qantas activities Met with Julie Lewisham to discuss California Ski promotions Air NZ Holidays Met with Nina Momeiseia for general catch up Hertz Met with Claire Flack for general catch up Qantas Holidays LA Experience Travel Industry Expo Mr & Mrs Smith Hotels Mogul Ski World Met with Fiona Dalton and Paula Gannon for general catch up and discuss Achievers Met with Karine Bulger to discuss new shopping experience in LA Met with Andrea Manookian to discuss new trade exhibition in Sydney Met with Rowena Fitzgerald to discuss opportunity to promote with Mr & MRs Smith Hotels Visited Mogul team in Melbourne for general catch up OTA Update Agent sign-ups for September: 4 Agent completions for September: 8 Running Tally 560/1236

10 DIGITAL UPDATES % HEADLINE/COMMENTS : Visitor Overview September 2013 Statistics Visitcalifornia.com.au Updates

12 September - EDM

13 Social Media Facebook Insights Reach % The reach graph shows how many people saw any content about the Visit California Australia page from 1 September 30 September 2013, and where applicable, whether these people were reached though organic or paid channel. % Likes, Comments and Shares

14 Hides, Reports and Unlikes Total Reach

15 PR HIGHLIGHTS Linda Silmalis s Coachella story from the global Entertainment fam runs across all News Limited sites. Ben Groundwater s Napa Valley story runs across multiple Fairfax news sites. FAMOUS confirm 6 page California story to run in October following story pitch about celebrity California favourites. Australians in Film Heath Ledger Scholarship winner James MacKay confirms he will redeem his prize trip and produce video content in November. Media Trips Journalist Name Outlet Regions Visited Tim Phin REMIX San Francisco / North Coast James Robinson New Zealand Herald West Hollywood, Santa Monica Julie Carroll New Idea Palm Springs, Los Angeles Katherine Chatfield Sunday Style Santa Monica Julie Miller Freelance West Hollywood, Beverly Hills, Los Angeles Matt Lennon Travel Daily Huntington Beach Anna Lynch New Zealand Women s Day Newport Beach / Anaheim Media Evaluation Total No of Clippings: 174 Total Circulation: 31,985,192 Total PR Value: $3,358,670

August Visit California Monthly Activity Report - AUSTRALIA. Gate%7%'%AUSTRALIA% %%%%%% %%%%%%

August Visit California Monthly Activity Report - AUSTRALIA. Gate%7%'%AUSTRALIA% %%%%%% %%%%%% August 2013 Visit California Monthly Activity Report - AUSTRALIA Gate%7%'%AUSTRALIA% %%%%%% %%%%%% TABLE OF CONTENTS Table of Contents AUSTRALIAN MARKET OVERVIEW... 3% Economy... 3% Airline Updates...