Destinations

Can Australia and New Zealand sales defy the credit crunch?

Despite a gloomy economic climate, new research by Travel 2 suggests Australia and New Zealand are growth areas for the travel industry.

The results of the operator’s study, revealed exclusively to Travel Weekly, suggests holidaymakers who want to live the high life and look for luxury should be the target market for agents selling Australia and New Zealand.

The operator claims the ­rise of the WAG lifestyle and City bonus spenders has driven demand for holidays of pure excess.

Travel 2 director Stephen Rhodes said: “When on holiday we enjoy the treat of a champagne lifestyle, whether this is an exclusive restaurant or simply upgrading our choice of hotel room.”

New developments, such as the opening of­restaurant Nobu in Melbourne and the rise of private resorts in Australia such as Qualia on Hamilton Island, are feeding that demand, the report claims.

Travel 2 Australia and New Zealand senior product manager Dagmar Marrocco said five-star hotels in Australia and New Zealand are considerably cheaper than those in the UK. For example, The Langham Hotel in Melbourne costs just £65 a night compared with the £150 its sister property in London charges.

She added: “People have ­always got a budget and agents work within it, but that’s where their expertise comes in to play as agents can upsell.

“You can show customers a five-star ­property in Sydney and highlight the price difference.”

She said as more Brits feel the urge to travel to Australia and New Zealand, big spenders will naturally enter the market.

Another major attraction highlighted by the report is the range of stopover destinations en route to Australia and New Zealand. A combination of new routes (including via the Middle East), the expanding frequency of flights and people’s increasing sense of adventure are driving the new trend.

Travel 2 advises agents to capitalise on this by offering  more diverse stopover destinations such as Mauritius, Vancouver, Rarotonga in the Cook Islands as well as Dubai and Abu Dhabi – tipped to be the next hot stopover cities.

The report also reveals the length of stay for a Brit in ­Australia is four days longer than the international average of 30 days. Visiting friends and relatives, repeat travel and flash-packers – those taking a career break – are strong growth markets for agents. Cultural experiences are also becoming more popular.  

Travel 2 director Stephen Rhodes said: “Australia and New Zealand no longer carry a once in a lifetime image and repeat travel is increasing, and at a significant pace.”

Regions tipped for popularity

  • Ningaloo Reef on the central coast of Western Australia for whale watching and diving
  • Noosa on the Sunshine Coast, near Brisbane
  • Kimberley Outback in Western Australia for the wilderness adventure
  • Small ship cruising in the Bay of Islands, New Zealand
  • Abel Tasman, New Zealand for walking and kayaking holidays
  • Tauranga, on the North Island, New Zealand

Helping the trade sell Australia and New Zealand

Zealand senior product manager Dagmar Marrocco said Travel 2/4 is trying to help the trade access greater sales in New Zealand. According to Tourism New Zealand, 90% of all trips are independent bookings.

She said customers visiting Australia are still looking to the trade for advice, with 34% of first-timers to the country citing travel agents and tour operators as their primary sources of information.

Marrocco said the typical lead-in time for a booking to Australia is between three and six months with a further 20% of customers booking their flights more than six months ahead of departure.

October and December are the key booking months for visitors heading to both countries, with January and February the top months for departures.

However, she added there’s still a considerably strong lates market for Australia as a fifth of travellers book their flights to the country within a month of departing.

Statistics: tourism down under

  • More than half of all UK travellers to Australia are repeat visitors
  • Average length of stay for UK travellers to Australia is 34 nights
  • Since 1999 the number of UK visitors to New Zealand has more than doubled to 286,778
  • The number of Brits visiting New Zealand is predicted to increase by 4.9% every year until 2011

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