Tourism

STUDY: Cashed-up consumers, not JobKeeper, key to Australia’s tourism recovery

The recovery of Australia’s beleaguered tourism industry won’t hinge on the actions of “politicians or bureaucrats”, but on the choices of high-earning, high-spending consumers, according to new research.

The study, led by Roy Morgan, revealed that while government support, particularly JobKeeper, has been important for the travel and tourism sector to date, it is not the path back to economic safety.

Instead, the market research company finds high-earning, curious consumers – which it calls the new economic order of premium consumers (NEOs) – will drive economic recovery.

“The evidence on the new economic order is incontrovertible,” Roy Morgan CEO Michele Levine said.

“We tracked NEOs as they drove the post-GFC recovery and we’re already seeing them charge ahead in what will be a two-speed recovery.”

According to Roy Morgan, Australia has at least 4.7 million of these “powerhouse consumers”, 76 per cent of whom in the year to March 2020 nominated Australia as their preferred destination for their next holiday.

Domestic travel is, however, the only option for Australians in the near future; but such a margin of interest in local holidays from NEOs is significantly higher than the 59 per cent figure for the population, as noted by Roy Morgan.

The data further reveals that NEO-preferred destinations span across the entirety of Australia. The top destination is Victoria’s Spa Country, with NEOs twice as likely as the average population to visit.

“NEOs are the future-shapers. They are ready to travel as soon as permitted; in many states they are already back out accumulating cherished experiences and spending freely,” Levine said.

“However, to appeal to NEOs, you must genuinely understand their thinking or mindset. This requires discarding truisms about doing business in a recession, especially the push to discount.”

In order to attract “big spending” visitors, Levine said, travel operators need to find value-add promotions rather than just offering discounts.

The data also reveals that NEOs are more likely than other Australians to take a three-week trip over the next 12 months, spending far more than those who opt for weekend jaunts.


Featured image source: iStock/SooMountain


SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Cruise

Financial woes force river cruise line Pandaw to fold

by Huntley Mitchell

In very sad news, Pandaw has been forced to shut down its river cruise operations after being at the mercy of the spicy cough.

Share

CommentComments

Destinations

Tourism Australia chair Bob East steps down

Bob East’s EA is currently breathing a sigh of relief after the industry veteran stepped down from one of his many board roles.

Share

CommentComments

Aviation

Virgin Australia shows off its flair in wonderfully fun campaign

It’s been so long between trips that Travel Weekly’s editor is even pining for departure delays, overpriced drinks and soggy inflight sandwiches.

Share

CommentComments

Destinations

Fill your clients’ hearts with Ireland

For agents looking to sell Ireland, this article is like a pot of gold at the end of a rainbow. You may even feel luckier after reading it.

Share

CommentComments

Hotels

IHG continues Victorian expansion with Holiday Inn Dandenong

The hotel company is continuing to conquer suburban and regional Victoria with this latest signing. However, that’s not to say its efforts involve tanks or cavalry soldiers in funny hats.

Share

CommentComments

Technology

BBC Global News unveils its very own online travel marketplace in Australia and NZ

The UK media giant wants a bigger slice of the travel pie, and is heading Down Under to get it.

Share

CommentComments

Destinations

Tasmania reveals reopening date to Australia’s mainland

The Apple Isle is getting ready to throw open its borders, which is sure to have mainlanders throwing their hands up in the air and yelling ‘yahoo!’

Share

CommentComments

Aviation

International carriers set Aussie return dates, as Qantas brings forward overseas restart for Melbourne

The increased clarity around border openings as Australia’s vaccinated population grows has given overseas airlines the opportunity to set return dates, with a spate promising to return earlier than expected.

Share

CommentComments

Destinations

WATCH: Destination NSW launches spectacular ‘Feel New’ campaign

Featuring some very flash TV spots, the campaign highlights the state’s natural and cultural offerings, and it’s pretty bloody captivating.

Share

CommentComments

Hotels

Intrepid to open “hybrid hotels” across Australia and NZ through new joint venture

Intrepid has taken its first step into the hospitality market with the promise of some pretty snazzy hybrid hotels. Wondering what the heck a hybrid hotel is? Find out here.

Share

CommentComments

Destinations

Austria: Where culture meets scenery

Whether your clients are eager to get their culture fix, strap on their hiking boots or race down the slopes, in Austria, they can get it all.

Share

CommentComments

Travel Agents

Helloworld’s revenue and TTV soar during September quarter

For full transparency, some of these financial figures are unaudited, but let’s not let that take away from Helloworld’s strong recovery.

Share

CommentComments