TRAVEL AND TOURISM (TRA)
Overview
Australia is a major source of export earnings for U.S. travel and tourism services.
Australia is the sixth largest market for international visitors to the U.S., and the third largest market for the U.S. in the Asia Pacific region. In 2005, 582,000 Australians visited the U.S.
The Australian market has proved its resilience to world events over the last few years. A consistently high-performing market, Australia set a new record for inbound travel to the U.S., surpassing a previous record set in 2000. In 2005, Australian visitors to the U.S. increased by 12 percent over 2004. The double-digit growth rate is the second straight year for double-digit growth, and the steady growth of Australian travelers to the U.S. is predicted to continue in the long term.
Australians have a great propensity for travel and receive four weeks of annual vacation per year. Australian travelers to the U.S. are characterized by long stays and high spending, and tend to travel during the off-season months of May, June, September, and December. The U.S. is the most popular long-haul destination for Australian travelers. The long distances for Australians traveling to the U.S. is reflected in their relatively long periods of stay. The average length of stay for Australians in the U.S. is 24 days, substantially higher than the average for all overseas visitors, which is 16 days. This makes the Australian traveler’s impact on U.S. tourism even more important.
With the stronger buying power of the Australian Dollar against the U.S. Dollar, travelers are seeing instant value, encouraging a boom in travel to the U.S. An increase in flights by Qantas Airways, United Airlines and the introduction of services by Hawaiian Airlines and Air Tahiti Nui has resulted in increased air capacity between the two countries.
Best Products/Services
Most Australians visiting the U.S. are independent travelers and make use of several modes of transport for travel within the U.S., such as domestic airlines, car rentals, and bus or train services. The most popular types of accommodation are three star, medium-priced hotels.
The most popular activities for Australian travelers visiting the U.S. include shopping, dining in restaurants, sightseeing in cities, touring the countryside, taking guided tours, and visiting historic places, amusement/theme parks, national parks, and cultural heritage sights.
While California is still the most popular destination, in 2005, New York City saw an upsurge in visitors, making it the most popular city for Australian travelers. Direct flights offered by Qantas Airways and the introduction of Sydney-Papeete-New York services by Air Tahiti Nui has increased the capacity between Australia and New York.
In 2005, the most popular destinations for Australian travelers were California
(54 percent), New York (42 percent), Nevada (20 percent), Florida (9 percent), Illinois
(6 percent) and Massachusetts (5 percent). The top cities visited were New York City (40 percent), Los Angeles (35 percent), Las Vegas (20 percent), San Francisco
(17 percent), Anaheim (12 percent), Washington DC (8 percent) and Boston
(5 percent).
Although the U.S. appeals to most Australian travelers of any age and with varied interests, below are a few niche markets showing signs of increasing growth:
Self-Drive Holidays
Interest in self-drive holidays is strong. Most Free and Independent Travel (FIT) tour operators selling travel to the U.S. offer car rental at competitive prices. Self-drive holidays appear to be most popular with 35-55 year olds and families who can benefit from the added flexibility. Australian tour operators comment that they have experienced an increased demand in requests for pre-booked car and accommodation packages.
Ski Holidays
Australia is an important market for U.S. ski resorts and ranks in the top three overseas markets for many major U.S. destination ski resorts. Nearly 14 percent of the Australian population skis and the participation rate of skiing in Australia is higher than in Canada or the U.S. Skiing is a popular holiday activity and booking figures for the 2006/07 snow season at Colorado’s ski resorts indicate that Australian skiers are more eager than ever to ski in the U.S. In 2005, Colorado experienced a 35.7 percent increase in Australian skiers, the largest year-on-year growth recorded of any international market to Colorado. The boom is attributed to a strong Australian Dollar and enticing holiday packages developed by Australian ski tour operators.
As long haul travelers, Australians tend to spend between 10-14 days on a ski holiday. Australian skiers either stay in one particular location for an extended amount of time, or will visit several different destinations on one trip.
Baby Boomer Travel
The baby boom generation is a growing force in Australia’s travel market. Australian baby boomers have money and time, and are willing to spend both on traveling. This group is of a healthy age and is looking at wider experiences in their travels. The great outdoors is a big attraction, especially Alaska and itineraries that feature the National Parks (such as the Grand Canyon, Bryce Canyon and Yellowstone). Baby boomers are looking for soft adventure travel but with the security of group travel, at an easy pace, and with all arrangements organized for them. Many of the travelers in this group are without a partner.
Cruising
Cruising is becoming more popular with Australians. Alaska is a popular destination for the 55-plus market. In 2005, many cruise companies experienced between a 30-45 percent growth in Alaskan cruises booked by Australians. Cruises from Hawaii, Florida and out of Los Angeles to Mexico are also gaining in popularity. Aging baby boomers and the fear of terrorist attacks have provided an unexpected boom for the luxury end of the cruising industry. Older Australians have increasingly looked to cruise ships as holiday destinations.
Special Interest and Cultural Tours
The demand for special interest and cultural tours by Australian travelers has increased over the past ten years. Tours that have been popular encompass a broad spectrum of product focused largely on consumers’ interests including history, art, gardening, wine and food. This segment is growing due to the consumer's desire for an alternative travel experience, and includes the mature traveler who is looking for a more structured holiday that offers educational value. The sector's growth is additionally fueled by exposure in the travel media including television programs specializing in travel, and travel sections in newspapers and magazines.
Resources
Office of Travel and Tourism Industries
http://www.tinet.ita.doc.gov/outreachpages/inbound.country_in_oceania.australia.html
U.S. companies seeking information on the Australian travel and tourism industry are encouraged to contact Monique Roos at the U.S. Commercial Service in Sydney
(email: monique.roos@mail.doc.gov ).