Ass 2

Assessment 2

a. Key Measures

Segment size measures: there are 3 different segments identified which are interstate, intrastate and international. The total of visitor from these groups in 2017 were 2,716,000. The domestic market, including interstate and intrastate market, accounted for 1,819,000 visitors in 2017. From this number, interstate market represents 628,000 and intrastate market 1,191,000. The international market represents a number of 897,000 visitors.

Segment growth rate: the interstate market decreased 10% in comparison with 2016. The intrastate market kept stable, around 0.9%. the international market also maintained stable in comparison with 2016, around -0.4%.

Proportion of the overall market: interstate market represents 23.1%, intrastate market represents 43.8% and international market 33%.

Consumer Factors: the domestic market is composed by visitors who are usually from intrastate and interstate visitors but they can also be included on corporate travellers or weddings visitors. Usually they are independent travellers who use their own car and wants to experience the region. They tend to choose mid-range accommodation particularly self-contained apartments to spend on attractions and food & beverage. The international market is divided in holidaying backpackers and standard international visitors. The backpackers are described as independent and they travel on average between 2 and 4 months in Australia and are interested in having holidays, not work. They are highly motivated to experience Australia’s nature, landscape and wildlife trough outdoor activities. They tend to choose budget accommodation to save money for attractions and tours and usually travel all year round. The standard international visitors they usually drive on campervans or hired cars and travel up to 4 weeks in Australia – days on average in the region. They also are highly motivated to experience natural areas. They tend to choose mid-range accommodation or caravan parks to spend significantly on attractions and food and beverage. They tend to spend money in regional areas beyond mainstream destinations and on locally made arts and crafts. They travel during domestic low-season and can offset the current seasonality of peak visitation.

Main consumer needs: the consumer wants meet their expectation, and they seek some factors such as behaviour of staff and costumer service (friendly, helpful, professional, experienced, knowledgeable), accommodation on reasonable price and user experience (tours, hiking, camping, etc).

Usage level: the domestic market, for both intrastate and interstate, they visit the region very often and more than once. They are likely to return every few years or some cases more than once per year. For the international market they are likely to nor return as they usually are on holidays and tends to visit a new location every time they travel.

Price sensitivity: the domestic market, for both intrastate and interstate, they either are happy to spend some money on accommodation like luxury resorts or hotel with pool or spa, or moderate clean and comfortable accommodation. For international travellers, they also may have the same behaviour when it comes to accommodation if they are travelling in family groups, however, as the percentage of international travellers are higher in small groups, such as couples or even alone, they tend to save on accommodation so they can have money to spend on activities.

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the same behaviour when it comes to accommodation if they are travelling in family groups, however, as the percentage of international travellers are higher in small groups, such as couples or even alone, they tend to save on accommodation so they can have money to spend on activities.

Product involvement levels: the target group in this case, on all segments, they have a higher involvement with the attractions in the region. They likely to drive to their holiday destination and consider the journey as part of the experience, but once they are at their destination, prefer not to drive much. So, they tend to pay for tours, for example. Also, they enjoy to go out to eat and enjoy local or new cuisine. When it comes to explore the nature, the segments are divided in couples or small groups and family groups. The first group tends to explore more the nature with long hiking or adventure sports, for example. For the another group, they tend to explore the wildlife and the nature with short hiking, bird watching or enjoy the beach.

b. Description

Geographic spread: the domestic market they come from intrastate travels, from 400 km of the region, or interstate travels, mostly form Sydney, Brisbane and Melbourne. The international market mostly they come from United Kingdom (Europe), USA/Canada (North America) and China (Asia).

Demographic description: the intrastate travellers are mainly independent travellers who use their own car, predominantly coming from within 400 km of the region. This group consists mainly of couples and young families of between 25 – 40 years of age. The interstate travellers are predominantly travelling from Sydney, Brisbane and Melbourne. They age between 40 – 60 years and travel without children. The holidaying backpackers are usually self-drive travellers between the ages of 18 – 30. The standard international visitors usually are between 30 – 55 years of age. Both groups come predominantly from United Kingdom, New Zealand, North America and China.

Psychographic description: the domestic market tends to experiencing natural areas is important for this group of travellers and a commitment to environment protection is valued. Also, this segment is more likely to travel with family and they, happy to mix with others in passing and their holidays are built around family and friends. The international market is interested in having holidays, not work, and highly motivated to explore Australia’s nature. They travel in couples or small groups and enjoy meeting and mixing with new people. Also, they like to find a new holiday destination every year.

c. Competition

Main competitive offerings: medium and short haul international destinations offer similar experiences to Queensland with stunning resorts as well as strong associations with lifestyle experiences – with a price point not that different to a Queensland island holiday.

Main media choices: Social media could be better…

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