1. Travelling Australia Travel plans for 2005 and the impact of discount airlines Hotel Motel and Accommodation Association Conference July 2005

2. Who is Stollznow Research?  Research and insights advisory  Many clients in travel, tourism and leisure, including …  Fiji Visitors Bureau  Tourism NSW  Globus & Cosmos  Group Event Travel  I-Explore  Arajilla – Lord Howe Island  Park View Hotel – Alexandria NSW  Presentation available online

3. What we wanted to know  Where people are travelling in 2005  The method people use for booking travel  The mode of travel to their destination  The effect of discount airlines on  The size of the Australian travel market  Bookings at hotels, motels and accommodation properties

4. The survey  1,197 individuals answered questions as part of the Stollznow Panel  Panel members come from all states  Metro and regional areas  Self-completion by mail  Questions answered in December 2004  Additional questions 25 th July  Small base size of 40 respondents  Caution, but indicative

5. Travel in 2005

6. Travel planned in the next 12 months Base: All people 1197

7. Travel planned in the next 12 months Base: All people 1197

8. Australian destinations Base: All people those travelling in Australia 781 1.96 trips planned in Australia per person

9. Australian destinations Base: Those travelling in Australia 781 Destination Source market This chart shows the destinations of each state eg 54% of those from NSW are visiting NSW. Totals add to more than 100% due to multiple trips

10. Planning for the next trip

11. Destination of next trip Base: All people those travelling 828

12. Main reason for next trip Base: All people those travelling in Australia 781

13. Accommodation type Base: All people those travelling in Australia 781

14. How they’re booking air travel Base: All people those travelling in Australia 781

15. How they’re booking accommodation Base: All people those travelling in Australia making bookings

16. Discount airlines

17. Are discount airlines a good thing for Australians? Base: All people 1,347

18. Travelled more in Australia Base: All people 1,347

19. A static marketplace Visitor nights Trips per person 2000293,3844.0 2003294,1124.0 Source: Tourism Research Australia, 'National Visitor Survey', 2003

20. Mini-survey  How many trips in the next 12 months where you will stay overnight?  Modes of travel  [When using air] Have cheaper fares played a part in your decision to fly?  Are any of these trips additional to your usual travel due to cheap air fares?  [Where cheap airfares have played a part] If not flying would you have driven and stayed on route?  Interest in regional tourism

21. Travel mode

22. Travel switching All planned trips 100% Switched from road to air travel 13% Additional travel due to cheaper fares 15% Base: July survey 40 people

23. Would you have stayed overnight en route Those travelling by plane where cheaper airfares played a part in their decision to fly ― 29% of all travel Base: July survey 40 people

24. Interest in regional travel Mean 6.5 Base: July survey 40 people 61%

25. What does all this mean?

26. What can we learn  Travel to ‘home’ state usually the largest destination  Decline in ‘roadside’ accommodation  If business has been slow, it’s because there's less business  The role of VFR  Over 1/3 of domestic travel

27. Use the findings to prosper  Strong interest in regional travel  Market the location  Give people a reason to visit  Develop a Unique Selling Proposition (USP)  Can VFR be developed into regional tourism?  Take advantage of changes in bookings  Limited use of travel agents for domestic travel  Strong use of internet and direct bookings  Must have online booking  Need staff to handle sales and information  Staff also need to sell the region

28. Contact details  Neil Stollznow  PO Box 16 Level 2/156 Military Rd Neutral Bay NSW 2089 T +61 2 9953 7543 F +61 2 9953 7563 M +61 412 200 235  neil@stollznow.com.au neil@stollznow.com.au  www.stollznow.com.au