Changing consumer behaviour: Impact on the Australian domestic tourism market A consultancy project for the Department of Industry, Tourism and Resources
Report by Tourism Research Australia and the Travel Research Centre
Prepared by: Tourism Research Australia: Darrian Collins, Kathryn Galliano, Tim Quinn, Paul Fairweather and Andrew Maurer Travel Research Centre: Carolyn Childs and Bronwyn White February 2007
Photo credit: Name of Image: Blue Mountains Photographer: Richard Powers Tourism Australia Copyright
The information in Changing consumer behaviour: Impact on the Australian domestic tourism market is presented in good faith and on the basis that neither Tourism Australia or Tourism Research Australia, nor their agents or employees, are liable (whether by reason of error, omission, negligence, lack of care or otherwise) to any person for any damage or loss whatsoever which has occurred or may occur in relation to that person taking or not taking (as the case may be) action in respect of any statement, information or advice given in this publication. Data derived from Tourism Research Australia surveys are subject to sample error. Users of the data are advised to consult the sample error tables contained in Tourism Research Australia publications or otherwise available from Tourism Research Australia before drawing any conclusions or inferences, or taking any action, based on the data. © Copyright, Tourism Australia, 2007 Tourism Australia and Tourism Research Australia permits copies to be made of this publication for the purpose of promoting Australian tourism, provided that Tourism Research Australia is recognised on any copies as the author of the Changing consumer behaviour: Impact on the Australian domestic tourism market and the material is reproduced in its current form and a statement similar to the one listed below is included on any copy. However, copies may not be made for a commercial purpose, that is, for sale without the permission of Tourism Research Australia. This work should be referenced as: Tourism Research Australia. Changing consumer behaviour: Impact on the Australian domestic tourism market, February 2007, Tourism Research Australia, Canberra. Tourism Research Australia Level 3 11-17 Swanson Plaza Belconnen ACT 2617 PO Box 1110 Belconnen ACT 2616 Telephone: + 61 2 6228 6100 Facsimile: + 61 2 6228 6180 Email: email@example.com ABN 99 657 548 712
Table of contents
Introduction Key Findings from Domesticate™ Changes in consumer travel behaviour Consumers motivation to travel Use of discretionary income Motivations to purchase other items Use of discretionary time Attitudes towards ﬁnancing holidays Impact of domestic factors on international and domestic holiday choice Preferred travel experiences Impact of marketing Consumers attitude to overseas travel Overseas versus domestic destinations Converting an outbound traveller Pricing challenges Consumers attitude to domestic travel Increasing the importance of travel Decreasing demand for domestic tourism Conclusion References 1 3 7 9 9 12 14 15 17 18 20 21 21 24 25 26 26 26 28 32
In 2004/05 tourism contributed $33 billion in Gross Domestic Product (GDP) to the Australian economy. Over three quarters of tourism GDP was attributable to domestic tourism, with domestic households accounting for almost two thirds of tourism GDP (Australian Bureau of Statistics 2006a). Similarly, domestic tourism in 2004/05 accounted for 76 per cent of tourism consumption, with domestic households contributing 63 per cent of total tourism consumption (ABS 2006a). Clearly domestic tourism, particularly tourism by the household sector, is important to the Australian economy. However, the domestic tourism market has been performing relatively...