1. Travel market Briefing notes and sales support for news media sales teams

2. This deck is split into two sections: Section 1 An overview of the Australian travel market The 2015 Media i Industry Survey asked agencies “what are the most important factors when dealing with media owners”. The most common factor (52% agreed ) was “understanding of your client’s business and category”. Section one provides an overview of the travel category, specifically around domestic and international travel. The information contained in this section won’t make you an instant expert but it will help get you up to speed on some important facts about the category. Section 2 Support slides for sales presentations Every great sales presentation is tailored for each client, but there are certain points that fit most clients within a category. Sections two contains research about how news media can help travel brands win customers. What’s in this deck?

3. Section 1 Travel market: an overview

4. Investment in local tourism rising $53.7 billion value of investment in local tourism projects (up 9%). $13.0 billion value of arts, recreation and business services infrastructure projects (up $5 billion). $8.5 billion Investment in accommodation in 2014 (up 1.1 $billion). 18,315 The number of new rooms available to tourists in 2015. Source: Tourism Research Australia, Tourism Investment Monitor 2015.

5. Strong performance from hotel sector Sources: Colliers, Hotels Research and Forecast Report, 2015. emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016. Occupancy Average Daily Rate Sydney City87.1%$225.40 Melbourne city85.0%$205.75 Brisbane72.8%$173.49 Adelaide76.5%$150.99 Cairns73.4%$122.12 Gold Coast69.9%$169.85 Perth81.0%$199.67 Darwin64.2%$166.32 Canberra72.5%$162.75

6. International visitor numbers rising 9 of Australia’s top 20 markets reported record arrivals this year. $37.9 billion international visitors to Australia spent in the year ending March 2016 (up 17% YOY). 9% growth of international visitors aged 15+. 8% increase in the length of stay by international visitors. Source: Tourism Research Australia, International Visitor Survey, March quarter 2016. China accounts for 23% of all international visitor spend. Japan — visitors up 16% to 131,000 USA visitors to Australia up 12% to 598,000 New Zealand—visitors up 5% to 1.2 million Visitors to Australia

7. Medium term outlook for international visitors positive Source: Deloitte, Tourism and Hotel Market Outlook, February 2016. 5.4% forecast growth of international visitors numbers over the next three years. 5.3% forecast increase in the number of international visitor nights.

8. Domestic travel figures on the up 88.5 million (+8% YoY) number of domestic trips taken in the last year $58.3 billion (+5% YoY) value of domestic overnight expenditure $28.4 billion (+4% YoY) spent on domestic holidays p.a. $18.5 billion (+11% YoY) spent on domestic business trips p.a. Source: Tourism Research Australia, National Visitor Survey, March quarter 2016.

9. Cruising a popular choice for travellers 1.6 million holidayed on a cruise ship in the past 12 months 1.2 million planning an international cruise this year 792,000 planning a domestic cruise this year Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

10. Qantas leads the local airline market Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016. Q. Have you flown with any of the following airlines in the past 12 months?

11. Potential to win market share in air travel Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016. Overall, a positive net promoter score, though a large portion of detractors are up for grabs.

12. Relaxation and sightseeing the goal for holidaymakers Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

13. Section 2 Support slides for sales presentations

14. The following slides provide general supporting arguments to assist sales teams when building client-specific presentations. The purpose is to open discussion, to demonstrate a basic understanding of factors that drive the travel industry, and to show how news media can help to influence the sales process. These slides are intended to be used in a presentation after recapping the brief, and before presenting analysis and recommendations tailored to the specific client. Needless to say, they can and be should be adapted to suit your particular presentation requirements. About these slides Recap client/agency brief Travel industry support slides Client specific analysis Recommendations

15. News media reaches travellers 14.4 million intending to travel domestically this year engage with news media. 7.7 million intending to travel internationally read news media in the last 4 weeks Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

16. 76 percent of people planning to travel domestically in the next 12 months read printed newspapers. International travellers are 18% more likely to read national newspapers. 6.9 million people intending to travel interstate read digital news media in the last 4 weeks. Get the best from news media platforms Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.. Some forms of news media are more efficient than others at reaching specific traveller segments.

17. Reach airline and accommodation consumers 10.6 million consumers who used accommodation services in the last 12 months engage with news media. 93% of airline travellers read news media in the last four weeks. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only..

18. Travellers regularly engage with newspapers 38 per cent of people planning a holiday in the next 12 months are medium to heavy newspaper consumers (i.e. read 3+ copies a week). Over 3 million domestic travellers are heavy newspaper readers, consuming 7+ editions a week. 3.3 million international travellers read 3+ print copies a week. Travellers likely to be mid- or heavy- print newspaper readers. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

19. 80% 66% Newspapers are also digital The combined reach of print and digital news media: 93% of travellers. Print Digital Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

20. Digital news media readers are frequent travellers Digital news media readers are: 4% more likely to travel for business or holiday in the next year than non-readers. 11% more likely to travel internationally in the coming year than non-readers. 10% more likely to stay in a five star resort than non- readers. Digital news media readers are significantly more likely to travel than non-readers. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

21. News media readers are high value consumers News media reaches 94 per cent of the top 20% of spenders on travel. Consumers of digital news media are 25 per cent more likely to be among the top 20% of spenders on international airfares than non-readers. Readers of print news are 32 per cent more likely to be among the top 20% of spenders of travel insurance compared to non-readers. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only. News media readers spend more on travel

22. Newspaper Travel Sections Inspire 6.6 million Australians use newspaper travel sections for inspiration as they dream about their next holiday. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016. 86% of readers intend to holiday in the next 12 months 63% of readers have taken a domestic holiday in the last 6 months 39% of readers plan to take a holiday overseas in the next 12 months

23. Newspapers hit key travel segments Social Grade ‘A’: This group of consumers are 25% more likely to travel overseas than the general population. They are also 26% more likely to read 7+ newspapers a week. Males aged 45 – 64: One in four male consumers in this age bracket are heavy newspaper readers. They are also 7% more likely to travel interstate this year. Major Metro Inhabitants. Some 3.8 million major metro dwellers intend to travel overseas in the next 12 months. They are 4 % more likely to read 7+ newspapers a week. emma data shows consumer segments most likely to travel in the coming months. Three of the biggest markets over-index as frequent newspaper readers. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

24. Readers use newspapers to help them buy Buyers turn to newspapers to help them plan their next holiday. Media most useful when choosing holidays Newspapers25% Magazines24% Television24% Social media18% Radio7% Outdoor advertising3% Cinema3% Unaddressed mail or catalogues3% Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

25. Client specific analysis & recommendations This is the point to bridge to a client specific discussion. Each presentation will need to be individually tailored to suit the client and their objectives, but the logical flow from here is to move on to Analyses that address the client’s specific situation, challenges and opportunities. Solutions using your inventory, giving clear reasons why they are appropriate to the client’s specific needs, and suggestions on how they can be used most effectively.

26. About The Author Adrian Fernandes is Research & Insights Specialist at NewsMediaWorks. He is an award winning researcher with over a decade of experience in advertising and brand research for leading market research agencies in Europe & Australia. His previous experience includes 4 years at Fairfax Media as Consumer Insights Manager. Adrian combines data analytics with market research to provide publishers, advertisers and their agencies with actionable insights relating to the newspaper audience on print and digital platforms. For more information on this deck, please email adrianfernandes@newsmediaworks.com.auadrianfernandes@newsmediaworks.com.au

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