US Passport Holders 2007: 27% of U.S. citizens hold a valid passport
US Residents who have traveled abroad 2002: 23.2 million
Australia's Market share of long haul travel: < 2%
The Americas were responsible for 456,000 visitors to Australia during 2006. 2007 arrivals are forecasted at 477,000.
The U.S. State Department issued 320,000 passports the firstweek of January 2007, an all-time high
The USA is the fourth largest source market for travelers to Australia
Average age of Traveler: 46 years
USA is the most competitive and expensive country in the world for investment in advertising
Only 38% of American travelers read professionally written reviews, for example, while one in three reads traveler reviews of destinations, and two in three read travelers’ hotel reviews.
Strengths and Challenges
Strengths
Australia has the reputation as being a safe and friendly destination
In 2007 Australia has been voted as the “coolest” country in the world by STA Travel customers.
North Americans rate Australia very highly on their list of places that they would most like to visit
North Americans are one of the top spenders whilst in Australia
Challenges
Australia is perceived as a once in a lifetime vacation destination
Australia is perceived as being too far and too expensive
Strong competition from Cruise markets
The average American only receives two weeks holiday
Strong competition from Europe and Asia
Flattening of the economy, with increasing fuel costs
Marketing Australia - Traditional
Distribution Channel
Wholesalers/Tour Operators: This group controls approximately one third of the business sold to Australia. Most US Wholesalers sell to trade as well as direct to consumers.
Retail Travel Agents: Retail travel agents maintain a strong position in the distribution system, with a shift toward home office operations.
Aussie Specialist Travel Agents: As at September 2007 there are approximately 1040 qualified Aussie Specialists in the USA and 112 Premier Aussie Specialist agents. Aussie Specialists are still the market leader accounting for 55% of sales. According to the 2007 TA pax study - Premier Agents are the highest converting distribution channel in America at 50% and they maintain the highest booking value per trip in America averaging US $10,000 per booking. In 2007 the TA America’s ASP Program won Best Destination Specialist Program as voted by Travel Age West Readers.
For further information see Aussie Specialist Program at the end of this section.
Information Technology: The worldwide Internet population grew to a record level of 1.08 billion users in 2005. The US represented 203.82 million users. Travelocity, Orbitz and Expedia remain the major players for domestic online travel within the U.S.
Online Bookings: Internet usage is common when booking domestic US trips. Transactions on the Internet will account for 54% of all US travel bookings. The US Traveler has yet to gain the confidence to book complex itineraries such as an Australian itinerary on-line.
The large number of companies doing business on the Internet has altered the way travel is being purchased. While efficiencies of technology will lead to lower costs, suppliers must be focused on service delivery.
Internet travel planning does skew younger. Respondents ages 25 to 34 are the most likely to use the Internet as their primary travel resource, with 53% indicating so, and respondents ages 55 and older are the least likely, with 41% indicating so.
Consumer Trends
US consumers dream of visiting locations like Australia, but when it actually comes to booking a vacation very few venture outside of the U.S. (according to a Poll carried out by Mastercard, MAY 17, 2006)
Wholesalers are reporting;
And 2006 was the third year in a row that Internet-booked rates outpaced those booked without the Internet.
Travelers are using more sources than ever to shop around for pricing to Australia.
Air tickets are being purchased in some instances using frequent flyer miles, and the land components being arranged by the wholesaler and agents.
Primary
market Segments
Independent Travelers: These are travelers who are influenced by media or personal referrals and tend to bypass the traditional distribution channels. They may also be repeat visitors. Many use websites for itinerary planning.
Classic Traveler: This segment includes the 55+ retirees who have the time and ability to travel year round. They seek fully arranged packages, travel in groups or long stay programs.
