It’s not all about price!What motivates today’s budget travellers?
Carolyn Childs, Director, Travel & Leisure
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Price vs. emotion
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Price appears to motivate travel
0
20
40
60
Better valueaccom
Cheaperflights
Cheaperpetrol
Get time offwhen Ineed it
Availabilityof
packages
Packages for families
Events orfestivals
Moreinformationon where to
go
None of theabove
% o
f A
us
tra
lian
po
pu
lati
on
What would encourage you to take a short break in Australia?
© TNS Feb 2009
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But different needs exist
What would encourage short breaks: (%)
C02Q4 encourage you to take a short break
BASE: Total Sample: (n=1025)
Source: TNS Omnibus: February 2009
Cheaper Flights52%
Events/Festivals17%
Ability to get time off36%
Packages for families34%
Availability of packages 34%
Availability of packages 34%
16-34 year olds
Families
White collar professionals
50-64 year olds
White collar couples
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Consumer response is not generic
SHIT!OHI’m not convinced by
all the media doom and gloom…
They need to do something about it …
This means we are going to have to
tighten out belts… This is a great opportunity…
Things will work out…
Everyone should take responsibility for their own
situation…
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Who to communicate to about price
Challengers – 14%
Analysts – 26%Worriers – 17%
Protectors – 22%
Escapists – 12% Fighters – 9%
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Leveraging emotion
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What do consumers desire?
honesty and realness
local
slowing down / taking stock
empowerment
connectionreduced choice and
simplicity
Stability &
Security
authenticity of experiences
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Consumers are seeking security through their life choices…
Identity
Needing to have our roles redefined:
Simplicity
As life speeds up and becomes complicated, we yearn for the simplicity,
warmth and certainty of days gone by:
Moving from a desire quantity to the quality of
experiences
Quality
Honesty
Transparency
Innocence
Genuine
Of time
Connection
Family
Meaningful
Belonging
Sharing
Gender roles
Skills
Traditional
Rules
Certainty
Children
Patriotism / nationalism
10
Barriers
Spare time Financial pressures
11
The impact of consumer confidence
Westpac/Melbourne Institute: Consumer Confidence Index
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Case studies
Apple
Nike
Adidas
HeinekenVespa
wii
Ikea
MicrosoftSony
Nokia
VirginCoca-Cola
Canon
Motorola
Samsung
Starbucks
Cadbury
Pepsi
Visa
McDonald’s 7-Eleven
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Case studies Using price to build sustainable advantage
Carnival CruisesSTA’s £10 Pom
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Building sustainable advantage
Reward the loyal
Buy Australian
Promote escape
Make price promotion fun (but limited)
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If you make it about price it always will be
There’s always someone with deeper pockets
Brands that make emotional connection survive
Other categories leverage emotion well
Can we do it too?
Closing thoughts