State of the Nation Spotlight on Tourism
Portia Morgan
July 2019
Trust is the foundation of all human
connections – from intimate relationships to everyday business transactions
But it’s Distrust where our deepest
fears, pain and betrayal surface
The shock of discovering we were foolish to trust too much
5
• Making an online purchase
• Using Uber
• Taking a flight
• Going on a date
• Providing credit card details over the phone
• Opening a door to strangers
• Getting married
• Believing the news
Trust is the foundation of all human connections
6
Once we discover we were foolish to trust too much, it prevents us from:
• Making an online purchase
• Booking an Uber
• Planning a flight
• Going on a date
• Giving credit card details over the phone
• Opening the door to a stranger
• Getting married
• Believing the news
But distrust destroys social cohesion - instantly
7
Most Important Problems Facing the World
Base: Australian population aged 18+
Source; Roy Morgan nation-wide telephone survey June 12-13, 2019 (n=638).
16%
Economic 21%
12%
Environmental 46%
0
20
40
60
%
8
Most Important Problems Facing Australia
Base: Australian population aged 18+
Source; Roy Morgan nation-wide telephone survey June 12-13, 2019 (n=638).
14%
Economic 34%
15%
Environmental 24%
0
20
40
60
%
Tourism Matters
‘Tourism is potentially a country’s most valuable ‘New Age’ export industry’
10
Key Exports: Iron Ore, Coal, Gas & Education
Source dfat.gov.org
Rank Product $AUD Bn 2012-13
$AUD Bn 2017-18
$AUD Bn (%) Change
1. Iron ore $57.1 $61.4 +$4.3 (+7%)
2. Coal $38.6 $60.4 +$21.8 (+56%)
3. Education $14.5 $32.4 +$17.9 (+123%)
4. Natural gas $14.3 $30.9 +$16.6 (+116%)
5. Tourism $12.6 $21.6 +$9.0 (+71%)
6. Gold $15.3 $19.3 +$4.0 (+26%)
7. Aluminium $5.6 $9.4 +$3.8 (+68%)
8. Beef $5.1 $8.0 +$2.9 (+57%)
9. Crude Oil $9.7 $6.5 -$3.2 (-33%)
10. Copper $5.4 $5.7 +$0.3 (+6%)
11
Australia’s Biggest Export Markets
(2012-13 cf. 2017-18)
Source dfat.gov.org
Rank Country $AUD Bn 2012-13
$AUD Bn 2017-18
$AUD Bn (%) Change
1. China $84.6 $123.3 +$38.7 (+46%)
2. Japan $48.6 $51.3 +$2.7 (+6%)
3. South Korea $20.8 $23.6 +$2.8 (+13%)
4. USA $14.5 $21.4 +$6.9 (+48%)
5. India $13.3 $21.1 +$7.8 (+59%)
6. Hong Kong $11.9 $14.5 +$2.6 (+22%)
7. New Zealand $10.9 $14.4 +$3.5 (+32%)
8. Singapore $10.0 $13.2 +$3.2 (+32%)
9. UK $9.4 $11.8 +$2.4 (+25%)
10. Taiwan $8.2 $10.9 +$2.7 (+33%)
New Era for Tourism
Economy
14
Australia Today
[1] Australian Bureau of Statistics; March 2019
[2] Reserve Bank of Australia; May 2019
[3] Australian Bureau of Statistics; March 2019
[4] Finance.Yahoo.com.au – June 17, 2019
15
Standard Variable Interest Rates
Source: Reserve Bank of Australia
6.50%
7.50% (Dec '94 - Jul '96)
7.25% (Mar-Sep 2008)
3.00%
1.25% (June 2019)
0%
1%
2%
3%
4%
5%
6%
7%
8%
Record low:
Global Financial Crisis September 2008
RBA Emergency low GFC interest rates
16
Australia Today
Unemployment[2]
9.2% 9.4% 0.5
Under
Employment[2]
Consumer
Confidence[1]
118.9 4.0
114.7 0.3
Business
Confidence[3]
p 0.3
p p
p
• [1] Roy Morgan Face-to-Face; June 29/30, 2019; Australian population aged 14+
• [2] Roy Morgan Face-to-Face Survey; June 2019;
Australian population aged 14+ in Workforce
• [3] Roy Morgan Business Single Source; June 2019
17
Roy Morgan Business Confidence
Source; Roy Morgan Business survey (2010-2019). An average of 1,000 interviews per month with Australian businesses.
131.5
132.9
130.5
128.2
99.8
101.8
118.7
108.9
112.2
105.4
117.6
109.3
114.8
123.8
112.7
136.3
125.2
131.5
117.3
120.9
108.1
119.1
122.9
114.9
123.0
105.3
114.9
105.7 105.1
114.8
102.6
119.3
110.6
123.1
111.9
119.5
108.6
116.7 116.8
111.4
116.6
111.8
117.0
112.7
123.5
115.4
118.6
110.2
113.8
112.2
105.6
105.9
106.7
102.9
114.7
D F A J A O D F A J A O D F A J A O D F A J A O D F A J A O D F A J A O D F A J A O D F A J A O D F A
10 2011 2012 2013 2014 2015 2016 2017 2018 2019
June 2019
Base: Australian businesses
Society
19
Population Growth - Driven by Immigration
Source: Australian Bureau of Statistics
Base: Australian aged 0+
https://w ww.abs.gov.au/ausstats/[email protected]/mf/3101.0
25,180,200
15,000,000
17,500,000
20,000,000
22,500,000
25,000,000
27,500,000
20 © 2019 Written approval must be obtained from Roy Morgan before circulation or publication of this data outside the client’s institution. Store.roymorgan.com
Base: Australian population aged 14+ Source: Roy Morgan Research; 12 months to March 2007 and 12 months to March 2017
Everything is happening later in life
Own home
Have a home loan
Renting
With Parents
Shared Household
0
10
20
30
40
50
60
70
80
90
14
-15
16
-17
18
-19
20
-21
22
-24
25
-29
30
-34
35
-39
40
-44
45
-49
50
-54
55
-59
60
-64
65
-69
70
-74
75
-79
80
+
% o
f A
ustr
alian
s 14+
Po
pu
lati
on
2007
2018
Source: Roy Morgan Single Source (Australia) Base: Australian population aged 14+
21
It’s Official: Australia is an experience economy
Base: Australian population aged 14+
Source: Roy Morgan Single Source (Australia) April 2008 – March 2019
$101.2
Dollars spent on leisure and entertainment
$148.9
0
20
40
60
80
100
120
140
160
An
nu
al sp
en
d
($b
illi
on
s)
Almost $150 billion on experiences
vs
Almost $120 billion on discretionary goods
Holiday Attitudes & Activities
23
Overseas holidays becoming more desirable, weekend getaways less popular
80.6%
I like to take holidays within Australia
75.4%
46.8%
I like to go away on weekends
42.6%
8.3%
It only feels like a holiday if I leave
Australia 11.5%
Pe
rce
nta
ge
(%
) o
f A
ustr
alian
s 14+
Base: Australian population aged 14+
Source: Roy Morgan Single Source (Australia) April 2008 – March 2019
24
More people like others to plan their holiday
27.7%
I enjoy holidays where everything is organised
for you 33.2%
23.8%
I usually leave holiday arrangements to
someone else
25.5%
Pe
rce
nta
ge
(%
) o
f A
ustr
alian
s 14+
Base: Australian population aged 14+
Source: Roy Morgan Single Source (Australia) April 2008 – March 2019
25
Trend toward desiring cultural experiences and ecotourism
68.6% I'd like to holiday
where I can experience the local
culture
72.4%
19.3%
For my next holiday, I'd really like a total
ecotourism experience
21.1%
Pe
rce
nta
ge
(%
) o
f A
ustr
alian
s 14+
Base: Australian population aged 14+
Source: Roy Morgan Single Source (Australia) April 2008 – March 2019
Technology
27
Internet is now ubiquitous
Base: Australian population aged 14+
Source: Roy Morgan; 12 month moving average
More Than Once A Day, 81.3%
Once A Day, 4.5% A Few Times A Week,
3.9% 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
28
Traditional Websites and Search (visited in an average 4 weeks)
Represents a change in methodology from respondent recall to machine based measurement
Base: Australian population aged 14+
Source: Roy Morgan; 12 month moving average
Portals, 89.0%Search, 90.2%
Email, 77.2%
Directories, 61.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
29
Commercial & Community Websites
(visited in an average 4 weeks) Online Communities &
Messaging Sites, 89.7%
Online Auction Sites,
65.3%
Real Estate and
Renovation Sites, 31.7%
News & Newspaper
Sites, 76.3%Banking Sites, 69.3%
Travel Sites, 48.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Represents a change in methodology from respondent recall to machine based measurement
Base: Australian population aged 14+
Source: Roy Morgan; 12 month moving average
30
Major Online Community Websites (visited in an average 4 weeks)
Facebook, 83.5%
LinkedIn, 23.9%
Twitter, 30.3%
YouTube, 75.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Represents a change in methodology from respondent recall to machine based measurement
Base: Australian population aged 14+
Source: Roy Morgan; 12 month moving average
31
Types of Mobile Phone Used
Base: Australian population aged 14+
Source: Roy Morgan; discrete 12 month average
Smart Phones, 85%
Dumb Phones, 11%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2010 2011 2012 2013 2014 2015 2016 2017 2018
Au
str
alian
P
op
ula
tio
n 1
4+
32
Apps Ever Downloaded
76.2%
48.6%
62.3%
43.9%
72.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
Any App (unprompted)
Newspaper & Other News Apps
Magazine Apps
Radio & Music Apps
Banking Apps
Social Media Apps
Sports Apps
TV Apps
News, Newspaper & TV Apps
Game Apps
Any App (listed apps)
Information and booking
34 Source: Roy Morgan Single Source (Australia) Jan ‘18 to Dec ‘18 Base: Australian population aged 14+ ( )=Change since Dec’08
Places obtained information when choosing destination of last trip
Any Destination Domestic Destinations Overseas Destinations
(+4.7%)
(-1.9%)
(+2.6%)
(+1.5%)
(+3.6%)
(+2.9%)
(+1.1%)
(-4.1%)
(-1.6%)
(+0.1%)
(-1.5%)
(-19.5%)
(+5.0%)
(-2.4%)
(+3.6%)
(-9.7%)
(+3.2%)
(-0.1%) (+0.3%)
(-1.5%)
(-4.4%)
Figures in brackets represent ‘change since Dec’08’
The internet is most instrumental in choosing a destination, especially overseas travel
Word-of-mouth is the second most important tool for domestic travellers, while overseas travellers rely more on travel agents (though Travel Agent have lost traction overtime).
35 Source: Roy Morgan Single Source (Australia) Jan ‘18 to Dec ‘18 Base: Australian population aged 14+
Internet booking is on a continuous growth spree, while ‘In person’ booking is more popular among overseas travellers
Booking Methods Used for Last Trip
Any Destination Domestic Destinations Overseas Destinations
Figures in brackets represent ‘change since Dec’08’
(-4.0%)
(+1.3%)
(+19.3%) (+16.8%) (+22.7%)
(-5.5%) (-4.2%)
(-25.1%)
(-11.8%) (-12.0%) (-11.6%)
36
19.2%
16.6%
14.4%
10%
7.7%
Source: Roy Morgan Single Source (Australia) Jan’18 to Dec’18 Base: Australian population aged 14+
Half of the domestic (48.2%) and overseas travellers (50.4%) have used online agencies, with Booking.com being used by 1 in 5
Domestic Travellers Overseas Travellers
24.6%
20.8%
18.2%
11.8%
10.6%
Top 5 Travel Agents / Tour Operators (L12M) are dominated by online brands
What’s happening
38
39
40
41
42
43
Australian Travel
45
Top 10 Accommodation Types used
33.5%
17.9%
13.8%
9.7%
7.0% 6.8% 6.2% 5.5% 4.7%
3.6%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Friend's/Relative'shome
Standardhotel/motel or
resort
4 star hotel orresort
Rented fully self-contained flat,
unit, etc.
Luxury hotel orresort: 5 star
Tent, camping Rented house Rented servicedapartment
Own holidayhouse, flat
Cruise Ship
Source: Roy Morgan Single Source (Australia) April 2018 – March 2019 Base: Australian population aged 14+ who took a trip of one or more nights in the last 12 months.
46 Source: Roy Morgan Single Source (Australia) ; Jan-Dec’18 Base: Australian population aged 14+ who have been on a trip and gave activity The charts only include activities over 10%
Relaxation and visiting family/friends is still the top activity for both domestic and international travellers, followed by food/eating
• Overseas travellers
indulge in a lot more
activities compared to
domestic travellers
• Food, shopping and
nature make up a
significant % of activities
done by Domestic
travellers.
47
Population growth drives travel numbers
Source: Roy Morgan Single Source (Australia) April 2000 – March 2019
Base: Australian population aged 14+
48
Australians are taking fewer trips
3.2
All Australians2.8
4.6Total travellers
4.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Base: Australian population aged 14+
Source: Roy Morgan Single Source (Australia) April 2000 – March 2019
49 © 2019 Written approval must be obtained from Roy Morgan before circulation or publication of this data outside the client’s institution. Store.roymorgan.com
Australians are staying away for shorter periods
5.8
Last Australian Holiday
5.6
31.9
Last Overseas Holiday
21.6
0
5
10
15
20
25
30
35
Av
era
ge
nu
mb
er
of
nig
hts
Base: Australian population aged 14+ Source: Roy Morgan Single Source (Australia) January 2001 – March 2019, 12 month moving average, sample n = 13,154
50 © 2019 Written approval must be obtained from Roy Morgan before circulation or publication of this data outside the client’s institution. Store.roymorgan.com
Holidays Taken – Trends
Top 5 Domestic
1. Melbourne
2. Sydney
3. Brisbane
4. North Coast
NSW
5. Canberra
Top 5 Overseas
1. New Zealand
2. England
3. United States
4. Bali
5. France
68.5%
65.9%
12.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Au
str
alian
s ag
ed
14+
(%
)
Have been on holiday in the last 12 months
13,741,000
Holidayed Overseas
5,455,000 (26.5%)
Holidayed Domestically
12,596,000 (61.2%)
(66.8%)
Base: Australian population aged 14+ Source: Roy Morgan Single Source (Australia) January 2001 – March 2019, 12 month moving average, sample n = 14,722
51 Source: Roy Morgan Single Source (Australia) Base: Australian population aged 14+
Looking at domestic visitation over the last decade, NSW continues to lead, recovering recently from a drop in 2011-2013.
Queensland moves down the ladder, with Victoria moving to 2nd position.
Air Travel
53
Air Travel – International Airlines used in the last 12 months
5.8%
4.0% 3.9% 3.4% 3.1%
2.0% 1.9% 1.7% 1.7% 1.4%
0%
1%
2%
3%
4%
5%
6%
7%
Base: All respondents 14+
54
Air Travel - Domestic Airlines travelled in last 12 months
Base: Australian population aged 14+
Source: Roy Morgan Single Source (Australia) April 2018 – March 2019
20.8% 19.1%
17.5%
5.4%
3.7%
1.6% 0.8%
0%
5%
10%
15%
20%
25%
Qantas (Domestic) Jetstar (Domestic) Virgin Australia(Domestic) (Revised
Jul11, Jul15)
Tigerair (Domestic) QantasLink Rex (RegionalExpress)
Other Domestic airline
55
Frequent Flyer Memberships
18.3%
29.0%
7.4%
19.4%
5.3% 6.2%
0.8% 1.5%
0%
5%
10%
15%
20%
25%
30%
35%
Apr08-Mar09 Apr09-Mar10 Apr10-Mar11 Apr11-Mar12 Apr12-Mar13 Apr13-Mar14 Apr14-Mar15 Apr15-Mar16 Apr16-Mar17 Apr17-Mar18 Apr18-Mar19
Air New Zealand Air Points
Qantas
Virgin Australia Velocity
% A
ust
ralia
ns
Age
d 1
4+
Other Rewards Program
56
140 million days of leave accrued!
Base: Australian population aged 14+, Paid Workers
Source: Roy Morgan Single Source (Australia) April 2018 – March 2019
None 31.2%
less than 4 weeks 28.5%
4-5 weeks 12.0%
more than 5 weeks 13.2%
can't say 15.0%
Where will we go?
58 © 2019 Written approval must be obtained from Roy Morgan before circulation or publication of this data outside the client’s institution. Store.roymorgan.com
Holiday intention slowing – but Overseas intention is increasing
68.5%
59.9%
5.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Au
str
alian
s a
ged
14+
(%
)
Intend to take a holiday
in the next 12 months
13,811,000 (67.2%)
Next holiday will be
Overseas 2,171,000 (10.6%)
Next holiday will be
Domestic 10,743,000 (52.2%)
Base: Australians aged 14+
Roy Morgan Single Source: January 2001 - March 2019, 12 month moving average, sample n = 20,037
59 © 2019 Written approval must be obtained from Roy Morgan before circulation or publication of this data outside the client’s institution. Store.roymorgan.com
Where Australians would like to go
83.6%
81.2%
42.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Au
str
ali
an
s a
ge
d 1
4+
(%
)
Preferred holiday
is Overseas
10,185,000
Preferred holiday is
Domestic 14,825,000 (72.1%)
Top 5 Domestic
1. Melbourne
2. Sydney
3. Great Ocean
Road
4. Hobart
5. Blue
Mountains
Top 5 Overseas
1. New Zealand
2. United States
3. England
4. Japan
5. Canada
Roy Morgan Single Source: January 2001 - March 2019, 12 month moving average, sample n = 20,037
Base: Australians aged 14+
Would like to take
a holiday in the
next 2 years
16,168,000 (78.6%)
60 © 2019 Written approval must be obtained from Roy Morgan before circulation or publication of this data outside the client’s institution. Store.roymorgan.com
Japan has increased in popularity – Asian Destinations Australians would like to visit
2.5%
Japan, 9.8%
5.1% Bali, 5.3%
3.6%Thailand, 4.6%
2.4%
Singapore, 4.3%
2.6%
Vietnam, 3.6%
1.7%
China (mainland), 2.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Au
str
alia
ns
ag
ed
14
+ (
%)
Roy Morgan Single Source: January 2001 - March 2019, 12 month moving average, sample n = 20,037
Base: Australians aged 14+
Preference to travel to Canberra
62
Recently more Australians are visiting Canberra
Source: Roy Morgan Single Source (Australia) 12MMA April 2002 to March 2019; Thinking about all holidays that you've taken in the last 12 months. Which places have you
stayed at for at least one night?
Base: Australian population 14+
8.6%
9.6% 9.1%
8.4%
6.2%
5.8%
4.4% 4.3%
3.5% 3.9%
3.1% 3.2%
1.9%
2.8%
1.0% 1.3%
0%
2%
4%
6%
8%
10%
12%
14%
Melbourne
Sydney
Brisbane
Canberra
Adelaide
Perth
Hobart
DarwinAu
str
ali
an
s A
ge
d 1
4+
(%
)
63
In the next two years Australians want to visit Melbourne and Sydney; Canberra is higher than Brisbane
Source: Roy Morgan Single Source (Australia) 12MMA April 2002 to March 2019; In the next 2 years, w hich place w ould you like to spend a holiday?
Base: Australian population 14+
19.4% 20.2%
14.3%
10.7% 9.8% 9.3%
11.0%
7.9%
8.2% 7.8%
10.5%
7.5%
7.8% 6.8%
6.5% 5.5%
0%
5%
10%
15%
20%
25%
30%
Melbourne
Sydney
Hobart
Perth
Canberra
Brisbane
Adelaide
Darwin
Au
str
ali
an
s A
ge
d 1
4+
(%
)
64
Sydneysiders are most likely to want to visit Canberra in next 2 years followed by Melburnians
Source: Roy Morgan Single Source (Australia) 12MMA April 2002 to March 2019; "In the next 2 years, w hich places w ould you like to spend a holiday (nett trip)?"
Base: Australian population 14+
8.3% 7.8%
3.0%
3.0%
1.2% 1.4%
1.6%
1.2%
1.5%
1.1% 1.0%
1.1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Australians
Sydneysiders
Melburnians
Other
NSW Regional(excl. ACT)
Queenslanders
Au
str
ali
an
s A
ge
d 1
4+
(%
)
65
Australians with a Preference to Travel to Canberra in the next 2 years
Source: Roy Morgan Single Source (Australia) 12MMA April 2002 to March 2019; "In the next 2 years, w hich places w ould you like to spend a holiday (nett trip)?"
Base: Australian population 14+
1,313,000
1,607,000
481,000 623,000
197,000 296,000
247,000
244,000 233,000
225,000
153,000 218,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Australians
Sydney
Melbourne
Other
NSW Regional (excl.ACT)
Queensland
Au
str
ali
an
s A
ge
d 1
4+
66
For the next trip, Canberra is becoming more popular
Source: Roy Morgan Single Source (Australia) 12MMA April 2002 to March 2019; "Thinking about your next trip, w here w ill you stay?
Base: Australian population 14+
8.9%
9.6%
7.4%
5.9% 5.8%
4.2% 3.0% 3.5%
2.7% 2.9%
3.3%
2.9%
3.2%
2.8%
1.5% 1.5%
0%
2%
4%
6%
8%
10%
12%
14%
Melbourne
Sydney
Brisbane
Canberra
Hobart
Perth
Adelaide
Darwin
Au
str
ali
an
s A
ge
d 1
4+
(%
)
What happens next?
68
ROY MORGAN PLATFORM
Transactional data
Consumer spend
Entertainment
Loans/Finance
Telco
Client’s own
Roy
Morgan
Data
Universes
Device
Mobile
Cookies
Address
DMPs
Digital Platforms
Facebook Google
The Trade Desk Adobe
Eyeota
Traditional Media
Out Of Home TV
Radio Print
Catalogues
Geography
Meshblock
SA1
Post Code
x/y, address
Data Integration &
Enrichment
69
70
Changing Landscape
NEO TRAVEL TRENDS
& DISRUPTIONS
1. Virtual reality lets travellers try before
booking
2. Find-engines are replacing search engines
3. Curators are replacing non-PLU ranters
4. Digital curators will kill travel storefronts
5. Micro-treasures are the new destinations
6. Live video streams of experiences – BIG
7. Hyper-local dining is the next BIG treasure
8. More use smartphone than desktop for
travel
9. Tracking where travellers have been
10.Using Deep Data to personalise
experiences
Questions
More information
Portia Morgan John La Rosa
Head of Client Services General Manager Agencies
[email protected] [email protected]
03 9223 2436 02 9021 9115