Asia snaps up ‘emotion’ share from Aussie holiday destinations

In this guest posting, TNS Director, Travel & Leisure, Carolyn Childs explains how Asia is attracting Australia’s domestic travellers.

For years, many Australian travellers have viewed Asia as predominantly a ‘fly and flop’ destination, but no more. The region is sneaking up on the heels of Australian destinations targeting domestic travellers, with value-based offerings around sightseeing, adventure and immersive or transformational experiences.  

Australian operators are encountering the challenge of a shift in their competitive set.  Traditionally, domestic operators contended with other domestic destinations (or other goods being purchased instead of domestic holidays), and increasingly New Zealand.  Our deep-dive study into the Australian domestic tourism market, Domesticate™, revealed a dramatic increase in the competitiveness of south-east asian destinations.

One research participant commented that they could get a three-week trip to Cambodia and Thailand for the same cost as a weekend in Sydney for a festival.  This coupled with increased capacity on routes, competitive air fares, favourable exchange rates and an extremely low in-market spend has strengthened rational justifications for SE Asia travel.

But we all know there is more to holidays than the lowest price (even though this is not immediately apparent by the way we compete with price-based offers). Emotion is the most compelling driver for holidays – reconnection with loved ones, relaxation, transformation and immersion are what we seek.

SE Asia is moving into this space as well, having augmented their traditional low-energy, affiliative, fly and flop offers with offers that meet travellers’ experiential needs – offering adventure, learning and challenges. This is in line with how some of these destinations have been marketed (eg Malaysia Truly Asia and Amazing Thailand), and is a reflection of the success of those campaigns. By meeting these more experiential needs, a higher emotional value is placed upon holidays to these destinations.

To stave off this challenge, it will be important to identify which elements of the Australian offer can really engage consumers. In part, the task is to raise our ‘emotional’ market share in the eyes of the consumer.

I will discuss how we do this and touch on why Australians aren’t using their annual leave and the decline of customer loyalty in travel at the upcoming press launch of Domesticate, to be held in Sydney on Tuesday March 16.  If you’d like to attend, please request an invite from tnscommunications.au@tns-global.com.

Carolyn Childs is Director of TNS’ dedicated Tourism and Leisure research division and contributes a regular column to Thumbrella. You can follow Carolyn on TNS’ blog, Sixth Sense (sixthsenseinsights.com.au), or on twitter @tns_aus.

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