Understanding the New Zealand consumer
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Understanding the New Zealand consumer A major tourism research project into how international consumers view Australia and the factors most likely to motivate them to visit the country has been undertaken by Tourism Australia. The scale and depth of the research is unprecedented and provides unique insights into consumer demand in 15 of Australia’s most important inbound markets. Insights from the work will contribute towards the industry achieving its Tourism 2020 goal – to increase annual overnight tourism spending to between A$115bn and A$140bn by the end of the decade. The research will be used to help shape the future marketing of Australia and identify opportunities to make the country’s tourism offering more attractive to overseas visitors. Respondent Profile Gender Age Male 42% 58% Female Place of Residence Under 24 years 9% Auckland 36% 25- 34 years 20% Canterbury 12% 35- 44 years 19% Wellington 12% 45- 54 years 17% Waikato 8% 55- 64 years 16% Otago 6% 65+ years 19% Manawatu-Wanganui 5% Western Bay of Plenty 4% Hawke’s Bay 3% Taranaki 3% Other Income Living Situation < $30,000 14% $30,000 - $49,999 17% $50,000 - $69,999 Don’t know / not say 32% Alone 20% 14% $100,000 149,999 $150,000+ Partner and children 16% $70,000 - $99,999 7% 12% 7% Parents 5% Single parent 5% Relatives/ family 3% 23% Work part time Retired Home duties 16% 9% Full time student 6% Looking for work 5% Other 2% 1% Occupation 39% Work full time 13% Housemates Other living situation Employment Status 35% Partner 10% Professional Clerical & Admin Manager Self-employed Labourer / trade Other Community Worker Sales Farmer 23% 8% 8% 8% 5% 4% 3% 3% 1% Sample size n=941 Most important factors when selecting a holiday destination (Top 5) Respondents were asked what they look for when choosing any holiday destination. Interesting attractions to visit 54% A destination that offers value for money 53% A safe and secure destination 53% Friendly and open citizens, local hospitality 33% Good food, wine, local cuisine and produce 32% Rich history and heritage 28% A family friendly destination 27% World class beauty and natural environments 25% A range of quality accommodation options 22% Exciting events, local festivals and celebrations 16% Different and interesting local wildlife 15% Great shopping/ world class brand names 14% Spectacular coastal scenery 14% Great swimming beaches 13% Native or cultural heritage or activities 13% Clean cities, good road infrastructure with clear signposts Flights with no stop-overs Ease of obtaining visa Vibrant city lifestyle Indigenous experiences A destination that offers the best in luxury accommodation and facilities Romantic destination 13% 13% 11% 10% 9% 6% 6% Read as: 54% of respondents rate ‘interesting attractions to visit’ as among the top 5 most important factors when choosing a holiday destination. Understanding the New Zealand consumer May 2014 How does Australia Rank? Respondents were asked to indicate which destinations they associated with the following factors. Each respondent was provided with a list in excess of 50 international destinations. Safety and security Respondents who have visited Australia All respondents Respondents who have not visited Australia Australia 86% Australia 88% Australia 74% UK 61% UK 63% UK 52% Canada 61% Canada 62% Canada 50% Switzerland 53% Switzerland 54% Singapore 48% Singapore 52% Hawaii 53% Switzerland 44% Hawaii 52% France 53% Hawaii 39% France 51% Singapore 52% Germany 39% Germany 46% Germany 47% France 36% Italy 44% Italy 45% Italy 33% United States (excluding Hawaii) 43% United States (excluding Hawaii) 45% Japan 32% Read as: 88% of those that have previously visited Australia had associated Australia with ‘a safe and secure destination’. Elements of a ‘safe and secure’ destination A low chance of being robbed or assaulted 32% A low chance of terrorism 27% A low chance of health risk 17% Law enforcement system with integrity that can be trusted 16% A destination whose people have similar beliefs to mine 3% Lack of bad reports about the treatment of fellow travellers 3% None of the above 2% World class beauty and natural environments’ Respondents who have visited Australia All respondents Australia 71% Respondents who have not visited Australia Australia 74% Australia 58% Canada 70% Canada 72% Canada 58% Switzerland 63% Switzerland 64% Switzerland 58% Italy 56% Italy 58% Hawaii 55% Hawaii 53% Brazil 53% Scandinavia 50% Brazil 51% Hawaii 53% United States (excluding Hawaii) 45% Scandinavia 50% Greece 50% Italy 45% France 48% Scandinavia 50% Brazil 42% UK 47% UK 50% France 42% Greece 47% France 49% UK 37% Read as: 74% of those that have previously visited Australia had associated Australia with ‘world class beauty and natural environments’. Elements of ‘world class beauty and natural environments’ Respondents were asked what are the most important types ‘world class beauty and natural environments’. Respondents were asked what constitutes ‘world class beauty and natural environments’. Remarkable scenery to soak up and enjoy Visiting sites of historical, cultural or religious 52% Tropical islands and beaches environments 26% 24% Historical / cultural / religious environments 25% significance Engaging with nature first hand, for example by hiking, bike riding or scuba diving Wilderness / mountain environments 16% 6% World Heritage status areas None of the above 1% 16% Natural remote coastal environments 13% Natural developed coastal environments 10% Wide open inland / outback environments 6% None of the above 3% Understanding the New Zealand consumer May 2014 Value for money Respondents who have visited Australia All respondents Respondents who have not visited Australia Australia 55% Australia 56% Australia 47% Thailand 41% Thailand 42% Thailand 35% 33% Fiji 34% Fiji 25% Fiji Vietnam 29% Indonesia/ Bali 28% Vietnam Indonesia/ Bali 23% 30% Vietnam 29% 19% 23% United States (excluding Hawaii) China United States (excluding Hawaii) 22% United States (excluding Hawaii) Other South Pacific 21% Other South Pacific 22% Hong Kong 19% Malaysia 21% Malaysia 21% India 19% Singapore 18% Singapore 18% Indonesia/ Bali 19% Hong Kong 17% Hawaii 16% Singapore 19% 19% Read as: 56% of respondents who have visited Australia previously associated Australia with ‘value for money’. Elements of ‘value for money’ Respondents were asked what constitutes ‘value for money’ when choosing a holiday destination. The best experiences I can afford within my budget Inexpensive airfares to the country or region Respondents who indicated Australia was not ‘value for money’ were asked why not. 42% High cost of living expenses (food, accommodation, etc.) 73% 26% High cost of travelling around 42% Low cost of living expenses (food, accommodation, etc.) in the country or region 17% Experiences that are not unique and can be had elsewhere 35% Unique / world’s best experiences that cannot be had anywhere else 10% Not the best experiences I can afford within my budget 26% Low cost of travelling around the country or region 5% Expensive airfares 20% None of the above 0% Other 8% Interesting attractions to visit All respondents Respondents who have visited Australia Australia Respondents who have not visited Australia Australia 71% United States (excluding Hawaii) 67% Italy 70% UK 67% France 69% Australia UK 67% France 65% United States (excluding Hawaii) 66% Italy Greece 60% Greece 63% Brazil Germany 53% Germany 55% Japan Canada 49% Canada 50% 46% Spain 48% Switzerland 46% 70% France Italy UK 66% United States (excluding Hawaii) Spain 45% Switzerland 60% 59% 57% 51% 49% 41% 40% 38% Canada 38% Hawaii 37% Thailand Read as: 71% of respondents who have visited Australia previously associated Australia with ‘interesting attractions to visit’. Elements of ‘interesting attractions’ Respondents were asked what constitutes ‘interesting attractions’ when choosing a holiday destination. Natural landmarks/ Heritage Sites 31% Historical landmarks 26% Theme parks (e.g. Disneyland) 9% Zoos/ Aquariums/ Wildlife Sanctuary 8% Shopping centres and malls 5% Museums/ art galleries/ theatres 4% Amusement/ Themed attractions 4% Restaurants 4% Cultural or religious sites 3% Spectacular architecture 3% Casinos/ nightclubs/ bars 1% None of the above 3% Understanding the New Zealand consumer May 2014 Good food, wine, local cuisine and produce Respondents who have visited Australia All respondents Respondents who have not visited Australia France 75% France 78% Italy 59% Italy 70% Italy 72% France 56% Australia 63% Australia 66% Australia 44% Spain 42% Spain 43% UK 33% Greece 39% Greece 41% Spain 31% Thailand 37% Thailand 39% Japan 28% Japan 37% Japan 38% Thailand 28% Germany 35% Germany 36% Germany 28% Argentina 28% Argentina 30% Singapore 23% United States (excluding Hawaii) 27% United States (excluding Hawaii) 29% Malaysia 21% Read as: 66% of those that have previously visited Australia had associated Australia with ‘good food, wine, local cuisine and produce’. Elements of ‘good, wine, local cuisine and produce’ Respondents were asked what constitutes ‘good food, wine, local cuisine and produce’ when choosing a holiday destination. Interesting and exciting street-food 23% Fresh local produce grown or raised in pristine natural environments 23% A national style of cooking I like 20% A heritage of food and wine culture 16% Vineyards with great food offerings 12% Award winning fine dining restaurants 5% None of the above 2% Respondents were asked what are the most important types ‘good food, wine, local cuisine and produce’. 34% A range of multicultural food options Fresh seafood 28% Natural fruit and vegetables 15% Award winning wineries 9% High grade meat and livestock 8% Renowned cheese and dairy 4% None of the above 3% How is Australian food and wine currently viewed by New Zealand consumers? Respondents were asked which factors they currently associate with the Australian food and wine offering. Fresh seafood 55% Backyard BBQs 42% Multicultural food 42% Fresh local produce grown or raised in pristine natural environments 37% Spectacular outdoor dining 37% Wineries with great food 35% Fish and chips on the beach A heritage of F&W culture Stunning food and wine trails Fine dining restaurants F&W events and local festivals High grade meat and live stock Outback Steakhouses Unique culinary experiences Meat pie with sauce None of the above 34% 31% 27% 26% 26% 26% 23% 17% 14% 11% Read as: 55% of respondents associated Australian food and wine with ‘fresh seafood’. Understanding the New Zealand consumer May 2014 Exciting events, local festivals and celebrations Respondents who have visited Australia All respondents Respondents who have not visited Australia 56% Brazil 54% Brazil Brazil 56% Australia 43% Australia 44% Hawaii 38% Italy 41% Italy 44% Spain 31% France 39% France 43% Italy 30% United States (excluding Hawaii) 37% United States (excluding Hawaii) 38% France 26% UK 36% Argentina 39% Australia 26% Argentina 35% Central America/ Caribbean 39% Germany 24% Mexico 35% Mexico 39% United Kingdom 21% Central America/ Caribbean 34% UK 39% Guam Hawaii 33% Greece 34% Greece 17% 17% Read as: 44% of respondents who have visited Australia previously associated Australia with ‘exciting events, local festivals and celebrations’. Elements of ‘exciting events, local festivals and celebrations’ Respondents were asked whether they always time their holiday and places visited with an event or festival of interest. Average Respondents were asked what constitutes ‘exciting events, local festivals and celebrations’ when choosing a holiday destination. -18% 51% Average -1% 81% China -6% 78% Indonesia -10% 72% India -9% 67% South Korea -8% 66% Brazil -10% 63% Malaysia -9% 58% Japan -16% 49% Russia -19% 46% USA -20% 40% Singapore -16% 37% Italy -30% 27% France -39% 25% Germany -36% 24% United Kingdom -40% 23% New Zealand Disagree Family events 19% Arts and entertainment events 17% Music festivals 14% Food and Wine festivals 13% Sporting events 10% Natural and wildlife events 9% Local/ regional events 8% Cultural celebrations 7% Religious events 1% None of the above 2% Agree Reads as: 23% of New Zealand respondents indicated they always time their holiday and places visited with an event or festival of interest Range of quality accommodation options Respondents who have visited Australia All respondents Respondents who have not visited Australia 83% Australia 85% Australia 71% United States (excluding Hawaii) 64% United States (excluding Hawaii) 64% United States (excluding Hawaii) 61% UK 52% Hawaii 53% UK Hawaii 51% UK 51% France France 51% France 51% Canada Canada 49% Canada 48% Singapore Singapore 43% Singapore 42% Italy Italy 40% Italy 40% Hawaii Fiji 37% Fiji 39% Hong Kong Hong Kong 37% Germany 39% Japan Australia 57% 54% 50% 50% 43% 39% 39% 36% Read as: 85% of respondents who have visited Australia previously associated Australia with ‘a range of quality accommodation options’. Understanding the New Zealand consumer May 2014 Friendly and open citizens, local hospitality Respondents who have visited Australia All respondents Respondents who have not visited Australia Australia 63% Australia 65% Australia 50% Canada 47% Canada 48% Hawaii 43% Fiji 44% Fiji 46% Italy 38% Hawaii 41% Hawaii 41% UK 38% UK 40% UK 41% Canada 35% United States (excluding Hawaii) 34% United States (excluding Hawaii) 34% Fiji 35% Italy 31% Italy 30% United States (excluding Hawaii) 33% Other South Pacific 29% Other South Pacific 30% Other South Pacific 25% Singapore 28% Thailand 29% France 25% Thailand 27% Singapore 28% Singapore 23% Read as: 65% of respondents who have visited Australia previously associated Australia with ‘friendly open citizens, and local hospitality’. Rich history & heritage Respondents who have visited Australia All respondents Respondents who have not visited Australia Italy 81% Italy 83% Greece 68% Greece 78% France 81% Italy 68% UK 77% UK 80% UK 59% France 77% Greece 79% France 51% Germany 65% Germany 69% Spain 46% Eastern Europe 62% Eastern Europe 65% Eastern Europe 43% Spain 57% Russia 59% Germany 43% Russia 57% Spain 59% China 41% Japan 54% Japan 57% Russia 41% China 52% China 54% India 38% 24th Australia 27% 24th Australia 30% 30th Australia 14% Read as: 30% of respondents who have visited Australia previously associated Australia with ‘rich history and heritage’. Family friendly destination Respondents who have visited Australia All respondents Australia 82% Hawaii Respondents who have not visited Australia Australia 87% Australia 63% 59% Hawaii 41% United States 58% (excluding Hawaii) 41% Fiji 56% Canada 34% 46% UK 49% UK Canada 46% Canada 49% Singapore France 33% France 36% Switzerland Italy 32% Italy 34% Fiji Switzerland 29% Switzerland 30% Italy Singapore 28% Singapore 30% Japan 56% Hawaii United States (excluding Hawaii) 55% United States (excluding Hawaii) Fiji 49% UK 34% 24% 23% 22% 22% 20% Read as: 87% of respondents who have visited Australia previously associated Australia with ‘a family friendly destination’. Understanding the New Zealand consumer May 2014 Associations with Australia vs. importance when selecting a holiday destination This chart shows the importance of each factor when selecting a holiday destination and the extent to which Australia is associated with each of these factors. The horizontal axis indicates the importance level, with low importance on the left side of the chart to high importance on the right. The vertical axis indicates the extent to which Australia is associated with each of these factors, with weak associations at the bottom to strong associations at the top. Weak Associations with Australia Strength 80 70 The best in luxury accommodation and facilities 60 Spectacular coastal scenery Great shopping Flights with no stop-overs Clean cities / good road infrastructure Ease of obtaining visa 40 Different and interesting local wildlife World class beauty and natural environments Friendly and open citizens Indigenous experiences Native or cultural heritage or activities 30 20 Safe and secure Interesting attractions to visit Good food, wine, local cuisine and produce Value for money Strengths for Australia Vibrant city 50 Family friendly Quality accommodation Great swimming beaches Exciting events Rich history and heritage Romantic destination 10 Opportunities for Australia 0 22 21 20 19 18 17 16 15 Low 14 13 12 11 10 9 8 7 6 5 importance when selecting a holiday destination 4 3 2 1 High The factors placed in the top right quadrant are considered the strengths for Australia as a destination, given the high importance in destination choice and the strong association with Australia as a holiday destination. The factors placed in the bottom right quadrant are considered the opportunities for Australia as a destination, given the high importance in destination choice but ‘currently’ weak association with Australia as a holiday destination. Strengths for Australia: Different and interesting local wildlife, great swimming beaches, quality accommodation, world class beauty and natural environments, friendly and open citizens, good food, wine, local cuisine and produce, interesting attractions to visit, value for money, safety and security, family friendly. Opportunities for Australia: Rich history and heritage. Aspiration and Intention to visit Respondents were asked which destinations they would most like to visit in the next four years (aspiration), and which destinations they are actively planning to visit in the next two years (intention). Australia Visitation 000’s of trips in 2012 (TE) Visitation rankings derived from Tourism Economics Intention Which of the following destinations are you actively planning to visit for a holiday in the next 2 years? Aspiration Which of the following destinations are you considering travelling to in the next 4 years? Australia 56% Australia 18% 186 United States (excluding Hawaii) United States (including Hawaii) 15% United Kingdom 177 78% United Kingdom 1201 United Kingdom 42% United States (excluding Hawaii) France 40% 27% Other South Pacific 11% China 128 Hawaii 25% France 9% Thailand 114 Italy 25% Hawaii 8% Singapore 107 Other South Pacific 23% Fiji 7% Fiji 106 Fiji 22% Italy 7% Eastern Europe 76 Canada 22% Canada 7% Hong Kong 72 Singapore 17% Singapore 6% Malaysia 66 Key: •Eastern Europe (e.g. Poland, Hungary, Czech Republic, Croatia, Slovenia) •United Kingdom (e.g. England, Scotland, Wales, Ireland) • Other South Pacific (e.g. Tonga, Samoa, Cook Islands, Vanuatu, New Caledonia) •Other South America (e.g. Chile, Columbia) Read as: 78% of New Zealand consumers are considering travel to Australia in the next 4 years, with 56% intending to visit. Australia is ranked 1st for visitation against other long haul destinations for outbound travel from New Zealand. Note: Hawaii is included in US for visitation figures as cannot be separated. Charts only display the top 10 destinations across aspiration, intention and visitation. Understanding the New Zealand consumer May 2014 Destination expectations and satisfaction Based on their last trip, respondents were asked what their expectations were before they visited. Based on their last trip, respondents were asked how satisfied they were with their holiday experience. Trip expectation – Top 10 Trip satisfaction – Top 10 Indonesia Japan USA UK Fiji South Africa Canada Thailand China Australia 21% Canada 85% 18% Malaysia 69% 17% Japan 68% 16% Indonesia 67% 15% USA 66% 14% Other South Pacific 60% 10% Thailand 58% 10% UK 58% 9% Fiji 56% 8% Australia 53% Read as: 8% of respondents had high trip expectations of Australia. Read as: 53% of respondents who recently visited Australia were highly satisfied with their trip. Obstacles preventing consumers from planning a holiday to Australia Respondents were asked if they had specific obstacles preventing planning a holiday in Australia. Expensive airfares 32% High cost of living expenses 27% High cost of travelling around 20% Not the best experiences I can afford 17% Experiences not unique / can be had anywhere 10% I don’t know enough about what to do there 8% Difficult to obtain visas 3% I don’t know anyone who lives there 2% I don’t know how to travel in/ around Australia 2% Flight is too long 1% Bad reports about the treatment of fellow travellers 0% A high chance of being robbed or assaulted 0% A destination whose people have different beliefs to mine 0% A high chance of terrorism 0% Law enforcement without integrity / trust 0% Told of a bad experience by someone I know 0% Other (Have other destinations higher on the list/ individual circumstances) 43% Read as: 32% of respondents indicated ‘expensive airfares’ was a key obstacle for not planning a holiday to Australia. Understanding the New Zealand consumer May 2014 Consumer passions and interest segmentation Respondents were provided with a list of 52 individual passions points (i.e. hobbies) and asked to indicate which ones were of interest. Respondents were then asked to indicate which of these passions they would travel overseas to specifically follow or participate in. After a thorough segmentation each individual passion was grouped into segments of which consumers would travel overseas to follow or participate in. Nature 50% Food and Wine 43% Arts and History 34% Shopping 31% Foreign Culture 31% Music and festivals 29% Sport 23% Aquatic activities 20% Photography 18% Adventure activities 11% Self Drive 10% Art Participation 9% Gambling 3% Read as: 50% of consumers suggested they would travel overseas to follow or participate in a ‘nature’ based passion or area of interest. Nature Activities (50%) Bird watching, campervan-ing, camping, gardening, observing wildlife, natural wonders, tramping and walking. Sports (23%) Cricket, golf, gym / fitness, horse racing, motor racing, netball, rugby, running, soccer and tennis. Food and Wine (43%) Trying new / different foods, cooking / learning to cook and wine tasting. Adventure Activities (11%) Four wheel driving, horse riding, hunting, kayaking, mountain biking, road cycling and skiing. Art Appreciation and History (34%) Admiring architecture / design, art appreciation, museums and history. Art Participation (9%) Drawing / illustration, painting, sculpture / pottery and writing, dancing and singing. Aquatic Activities (20%) Diving, fishing, sailing, snorkelling / scuba diving, surfing / paddle boarding and swimming. Single Activity Segments Experiencing foreign culture (31%) / Shopping (31%) / Photography (18%) Self Drive (10%) / Gambling (3%). Concerts and Festivals (29%) Attending concerts / shows, attending music festivals. Understanding the New Zealand consumer May 2014 Preferred sources when planning and booking a holiday to Australia Inspiration Respondents were asked to indicate their preferred sources when looking for inspiration and influence in selecting a holiday destination. Planning Respondents were asked to indicate their preferred sources when planning a holiday to Australia. 35% 28% Friends and relatives who live or have been to Australia Been there before General internet search Online flights booking site 27% Online flights booking site 19% Airline 21% Online travel reviews 13% Accommodation or activity provider website 15% Online hotel booking site 13% Online hotel booking site 14% Brochures 13% Online travel reviews 14% Travel agent 12% Brochures 13% Accommodation or activity provider website 12% Travel or guide books 12% Airline 10% Travel agent TV show, newspaper or magazine advertisments TV show, newspaper or magazines articles Advertised deal 11% Travel or guide books 9% 10% Any other travel website 8% 9% Advertised deal 5% 8% TV show, newspaper or magazines articles 5% Any other travel website 8% 4% Social network sites 2% Government Tourism Authority TV show, newspaper or magazine advertisments Movies / books 5% Government Tourism Authority Movies / books 2% Tour Operator 1% Tour Operator 1% Social network sites 1% Celebrity endorsement 0% Celebrity endorsement 0% Didn’t obtain information 10% Didn’t obtain information 11% Online sources (all options) 53% Online sources (all options) 52% Been there before Friends and relatives who live or have been to Australia General internet search 47% 40% Read as: 47% of respondents indicated that having been there before was important during early stages of planning a holiday. Booking 34% 28% 4% 2% Read as: 35% of respondents indicated friends, relatives and knowledge of having been there before a preferred source when planning a holiday to Australia. Respondents were asked to indicate their preferred sources when booking a holiday to Australia. Friends and relatives who live or have been to Australia Been there before General internet search 37% Online hotel booking site 16% Online travel reviews 12% Accommodation or activity provider website 10% Travel agent 9% Brochures 9% Travel or guide books 8% Online flights booking site 7% Advertised deal 5% Any other travel website 5% Airline TV show, newspaper or magazine advertisments TV show, newspaper or magazines articles 3% Government Tourism Authority 2% Social network sites 1% Tour Operator 0% Movies / books 0% 27% 24% 3% 3% Celebrity endorsement 0% Didn’t obtain information 10% Online sources (all options) 47% Read as: 37% of respondents indicated friends, relatives and knowledge of having been there before as a preferred source when booking a holiday to Australia. About the research The Consumer Demand Project (CDP) is a major international tourism research project into how global consumers view Australia and what most motivates them to visit, identifying the ‘triggers’ and experiences important to the consumer when selecting a holiday destination. The research project was carried out by BDA Marketing Planning, a consultancy who specialise in international demand side strategy development and consumer research. BDA Marketing Planning was originally employed by Tourism Australia in 2010 to work on a major strategic project which was the forerunner to the industry’s Tourism 2020 strategy. The aim of this follow-up consumer research project was to help determine the strategic priorities to achieve the Tourism 2020 goal, by providing a comprehensive assessment of Australia’s current destination appeal and the future tourism potential of key Australian holiday options. The research was carried out in fifteen of Australia’s key tourism markets: China, Germany, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea, Brazil, Russia, Italy, France, UK and USA. Understanding the New Zealand consumer May 2014
