For every service provider in the tourism and leisure industries, knowing the answers to these questions is critical – to your bottom line now, and for your survival and growth into the future.

Research is an essential tool for your business planning.

Tourism is an incredibly dynamic market, now more than ever. Information about holiday and travel patterns and consumer behaviour is vital to allow you to respond to and anticipate the needs of your clientele.

A recent study by Roy Morgan Research, The Changing Landscape of 21st Century Tourism and Leisure, revealed some stark trends no tourism operator can afford to ignore.

The knowledge this extensive survey has gathered should inform the decisions of all those with a stake in the future tourism. Some of the key findings are summarised here.

Domestic challenge

Domestic tourism has been languishing because of Australian’s growing access to and preference for outbound travel. The impact of rising petrol prices, dampening the drive and touring market and most recently felt in the Qantas airfares increase, has been exacerbating this effect.

Since September 11, 2001, Australians have gradually returned to overseas travel, withdrawing at intervals because of events such as the Bali terrorist attacks, SARS, the war in Iraq, Asian tsunami and London bombing. But, according to Roy Morgan data, since the Oct – Dec quarter 2003, the number of Australians aged 14-years+ travelling overseas has soared from less than 1.8 million to almost

2.7 million in the Apr – June quarter 2006.

Meanwhile, the charts tracking domestic travel preference and intention have been falling, quite dramatically. In Sept. ’04, 43 % of respondents answered “yes” to the statement “I intend to travel in Australia in the next 12 months”. In May this year, fewer than 37% were planning domestic trip.

Competing for our share

Leisure tourism relies on time and discretionary spending. Increasingly, other activities and products are competing for people’s time and money. Roy Morgan found, in the period from 2000-01 to 2004-05, annual per person spending on travel had increased by just 14%. But, since 1998-99, spending on the Internet had soared 236% and on mobile phones 183%.

Spending increases on mortgage payments, education, childcare, health insurance and petrol and household goods have also vastly outweighed travel expenditure.

Getting there

The way we travel within Australia is also changing. Most recently, discount airlines have been a factor. Roy Morgan annually surveys the mode of transport people used on their last trip. Since the arrival of Jetstar in mid-2004, the number domestic tourists using motor vehicles has fallen by around 5.5%, while airline use has risen by a similar figure.

CHANGING LANDSCAPE OF TOURISM  LEISURE

By Jane Ianniello

International Director

Tourism, Travel & Leisure

Roy Morgan Research