October Visit California Monthly Activity Report - AUSTRALIA. Gate 7 - AUSTRALIA
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1 October 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... 9 OTA Update Visitcalifornia.com.au Updates Social Media 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 5.7% in Oct 2013 (5.8% Sep13 & 5.4% Oct12) Consumer Price Index 1.2% in Q GDP Growth 0.6% in Q (0.4% Q & 1.4% Q1 1213) (0.6% Q & 2.6% 1213 total) New Zealand Economy CURRENT STATS Unemployment Rate 6.2% in Q Consumer Price Index 0.9% in Q GDP Growth 0.2% in Q PREVIOUS MONTH & LY (6.4% Q & 6.8% Q ) (0.2% Q & 0.3% Q1 1213) (0.3% Q & 2.5% 1213 total) Exchange Rates AUSTRALIA $1 NEW ZEALAND $1 USD $0.95 (Oct 31, 2012: $1.04) USD $0.83 (Oct 31, 2012: $0.82)
4 Airline Updates Air NZ granted approval to raise Virgin Australia stake The Australian treasurer has granted its approval for Air New Zealand to raise its shareholding in Virgin Australia to 25.9%. The green light follow s the matter s consideration by the Foreign Investment Review Board and a public inquiry by the Australian Competition and Consumer Commission. The authorization means that Air NZ will acquire an additional 3% of shares taking its stake in Virgin to 22.9%, with permission to increase that by a further 3%. The opportunity to take our shareholding in Virgin to 25.9% and the recently extended Tasman Alliance with Virgin mean we can confidently work with Virgin to provide a strongly competitive, Australasia and international airline network, chief executive Christopher Luxon said. We are fully supportive of the Virgin management team and strategy which provide an ideal complement to our own network and, importantly, an opportunity to participate in the Australian market with a respected partner.
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 Travel Corporation acquires Adventure World The Travel Corporation will acquire Adventure World as part of a new strategic alliance with NRMA, with Contiki Australia managing director Fiona Hunt to take on the top role at the wholesaler. Under the deal, TTC has committed to invest in Adventure World with its plan to grow the brand s market share in the local market, with the international launch of the brand in its longer term plan. Financial details of the acquisition were not disclosed. Meanwhile, NRMA, which has struggled to make its wholesale travel ventures work, will focus on its retail arm with chief executive Tony Stuart describing it as of critical importance. The strategic partnership between NRMA Travel and TTC will also enable NRMA to develop a range of member-special travel packages, he said. We believe exciting times lie ahead for Australia s tourism industry and today s announcement will ensure we continue to be a significant and committed player in travel. The acquisition of Adventure World and its subsidiary brands Creative Cruising, Coral Seas Travel, Value Tours Ski New Zealand and icruise New Zealand will take effect on November 1. All employees will be retained with the offices in Sydney and Auckland to continue operating as usual. The opportunities arising from The Travel Corporation and NRMA undertaking this marketing partnership are extremely significant for all of our team, NRMA s members, customers and industry partners, with this collaborative endeavour existing only to serve all stakeholders better, TTC Australia chief executive John Weeks said. We are also delighted to welcome everyone at Adventure World into the TTC family and look forward to celebrating continued success with Fiona and her new team.
6 Hunt welcomed the opportunity to lead the company, with evolution on the cards. Not only will we be investing in this company on a local level, we will also be looking to grow the brand to become a global entity as an undisputed expert in the soft adventure arena. Flight Centre to expand franchise agency network Flight Centre is to expand its Escape Travel franchise network in a significant move that is almost certain to target Jetset Travelworld agents who are unsure about joining Helloworld. It will offer agents from the broader travel industry the opportunity to become an Escape franchisee with Flight Centre claiming it has already been approached by agents who are affiliated to other franchise groups. The development is another headache for JTG management as it seeks to convince agents to join Helloworld. The franchise model that is in place is working well, delivering benefits to existing franchisees and the company as a whole at a time when significant change is underway in the Australian travel industry s franchise sector, Flight Centre chief operating office Melanie Waters-Ryan said. We believe now is the right time to build on these foundations by expanding our offering. Already we are being approached by agents who are affiliated to other franchise groups. Escape Travel's franchise model was launched in late 2005, but was placed on hold as Flight Centre focused on growing its leisure and corporate brands. Waters-Ryan described EscapeTravel as a "growing brand with an expanding nationwide presence". "Through franchising we can work with experienced external travel professionals to grow this network more rapidly and, at the same time, build on the platforms that are already in place," she said. We believe we can offer prospective franchisees an exciting and attractive business opportunity to become part of the FLT success story in Australia.
7 Bookings stagnate as Wotif faces the "end of an era" Wotif has again flagged the need to expand beyond its hotel booking roots as it warned that trading conditions remain soft despite a rise in consumer confidence. The online retailer said it had failed to see a bookings increase since the Federal election with any lift in public confidence yet to translate to sales. Asia also continues to under-perform with any turnaround unlikely before the second half of the financial year, Wotif chief executive Scott Blume said. On a more positive note, he told shareholders at the firm's AGM in Brisbane that accommodation sales for its rest of world properties have stabilised and are expected to be marginally ahead in the first half of the financial year. Its flights business also continues to outperform. If current trends continue we would expect our flight TTV to increase by over 30% over the first half of the prior year, Blume said. He declined to provide profit guidance for 2014 but said the company would do so when it releases its first half results. Meanwhile, dynamic packaging on Wotif.com is expected to go live this week which will enable consumers to buy flights, hotels and, at times, transfers and other products. The launch will provide new competition for bricks and mortar agents in the package arena, a historic product stronghold for traditional retailers. It also signals the latest phase in the evolution of Wotif which has stressed a need to expand beyond its core accommodation booking business. We have successfully negotiated very attractive air and land deals with our partners to ensure that our packages will be competitive and compelling for our customers, Blume said. This product builds on the success of the Sydney theatre package product where we had the opportunity to beta test the technology." Wotif chairman Dick McIIwain told the AGM that branching out beyond its roots was vital for the company s future as he declared the end of an era of double digit accommodation growth. The slowdown marks a turning point for the development of Wotif, he said. The results in the 2013 financial year tell much about the current business. They show that the company s core accommodation and Asian businesses have not produced the growth evident in the company s early years, McIIwain told shareholders. It can no longer see itself as a single purpose accommodation booking transaction service. He conceded that the online accommodation market has not reached its potential over the past few years, citing the growth of bookings through traditional agents and the emergence of overseas players.
8 The broader travel market in Australia offers Wotif an opportunity to be much more than an online accommodation matchmaker for accommodation houses and travellers, McIIwain said. Developing its flights business, dynamic packaging and alliances such as those with Japan Rakuten - are all critical for Wotif, he said. At the AGM, Blume also revealed that Wotif was close to finalising a deal with a new partner to provide improved content and pricing for the top 20 most popular global destinations for Australian travellers. The upgraded product is likely to go live in the second half of the financial year. Asian product is also being improved with a soon-to-be-launch marketing campaign expected to drive an improved performance next year.
9 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%).
10 TRADE ACTIVITY Trade Training - Conducted training at Ignite Travel for My California 12 consultants Trade Shows/Industry Events - Sponsored Jetset Norwood Trivia Night in Adelaide - Attended Australians in Film Gala event in Los Angeles - Attended Harvey s Choice Holidays Gala even in Sonoma Coops - My California campaign final stages of planning - Zuji campaign moved to February Familiarization Visits - Harvey s Legend famil took place in October 46 agents/attendees visited San Francisco, Oakland, Santa Cruz, Monterey and Sonoma. - Global Ski fam will have three Australian ski specialists in attendance in March - In talks with Qantas about supporting Luxury famil in March - In talks with House of Travel about supporting Drive famil in June Distribution of (not including training and shows/events): California IVG (Gate 7): 12 California IVG (TIFS i.e. Insider Signup): 91 California Maps: 0 Collateral: 0 Distribution of (training and shows/events): California IVG: 56 Australian California Guide: Collateral: Running Tally 1615
11 Meetings COMPANY Pinpoint Travel Group Harvey s Choice Holidays Ignite Travel MEETING HIGHLIGHTS Met with Alicia Hambly and the team to discuss partnership around consumer competition campaigns Met with David Clark and Bree Hollis to discuss Legends final stages Met with Kim Skilton, Randall Deer, Meagan Maynard and Daniel Monk to discuss My California launch OTA Update Agent sign-ups for October: 5 Agent completions for October: 4 Running Tally 566/1252
12 DIGITAL UPDATES HEADLINE/COMMENTS : Visitor Overview October 2013 Statistics Visitcalifornia.com.au Updates
13 October - EDM
14 Facebook Insights Social Media
15 PR HIGHLIGHTS 6 page California story runs in October issue of FAMOUS following story pitch about celebrity California favourites. 5 top tier Australian media visit California to participate in Dream Big media fam driving Highway One and attending AiF Awards. Media Trips Journalist Name Outlet Regions Visited Elle Halliwell Sunday Telegraph Oakland, Big Sur, Ojai, West Hollywood Jody Phan FAMOUS Weekly Oakland, Big Sur, Ojai, West Hollywood Rosie Squires CLEO Oakland, Big Sur, Ojai, West Hollywood Carmarlena Murdaca ninemsn Oakland, Big Sur, Ojai, West Hollywood Anna Brain MX/Herald Sun San Francisco, Oakland, Big Sur, Ojai, West Hollywood Sadaf Razi Girlfriend Huntington Beach Sophie Wright Snow White/Breakfast TV Yosemite Promotion winners Julie Carroll New Idea Palm Springs Andrea Beattie mx West Hollywood Santi Pintado MAXIM West Hollywood, Santa Monica, Greater LA Dan Steiner MAXIM West Hollywood, Santa Monica, Greater LA Wayne Daniels MAXIM West Hollywood, Santa Monica, Greater LA Elena Vannucci ELLE Santa Monica Ben McKelvey Freelance San Diego, Santa Monica
16 Media Evaluation Total No of Clippings: 83 Total Circulation: 7,025,139 Total PR Value: $2,886,874
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