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GLOBAL TOURISM and TRAVEL DISTRIBUTION: Changes, Impacts and Opportunity for Australian Tourism GLOBAL TOURISM AND TRAVEL DISTRIBUTION: changes, impacts and opportunity for Australian tourism Kenneth E. Miller, Suresh Sood, Uraiporn Kattiapornpong, Mark Woodbridge and Ian McDonnell GLOBAL TOURISM AND TRAVEL DISTRIBUTION: changes, impacts and opportunity for Australian tourism Disclaimer The technical reports present data and its analysis, meta-studies and conceptual studies, and are considered to be of value to industry, government or other researchers. Unlike the Sustainable Tourism Cooperative Research Centre’s (STCRC’s) Monograph series, these reports have not been subjected to an external peer review process. As such, the scientific accuracy and merit of the research reported here is the responsibility of the authors, who should be contacted for clarification of any content. Author contact details are at the back of this report. The views and opinions of the authors expressed in the reports or by the authors if you contact them do not necessarily state or reflect those of the STCRC. While all reasonable efforts have been made to gather the most current and appropriate information, the STCRC does not give any warranty as to the correctness, completeness or suitability of the information, and disclaims all responsibility for and shall in no event be liable for any errors or for any loss or damage that might be suffered as a consequence of any person acting or refraining from acting or otherwise relying on this information. National Library of Australia Cataloguing-in-Publication Entry Title: GLOBAL TOURISM AND TRAVEL DISTRIBUTION: changes, impacts and opportunity for Australian tourism ISBN: 9781921785153 (pbk.) 9781921785658 (pdf.) Subjects: Tourism--Australia--Evaluation. Tourism--Australia--Forecasting. Travel. Other Authors/Contributors: Kenneth E Miller, Suresh Sood, Uraiporn Kattiyapornpong, Mark Woodbridge, Ian McDonnell CRC for Sustainable Tourism. Dewey Number: 338.4791 Copyright © CRC for Sustainable Tourism Pty Ltd 2010 All rights reserved. Apart from fair dealing for the purposes of study, research, criticism or review as permitted under the Copyright Act, no part of this book may be reproduced by any process without written permission from the publisher. Any enquiries should be directed to: General Manager, Communications and Industry Extension or Publishing Manager, [email protected] First published in Australia in 2010 by CRC for Sustainable Tourism Pty Ltd Cover images courtesy of Tourism Australia, Tourism WA (Margaret River), Tourism NT and SATC Printed in Australia (Gold Coast, Queensland) ii GLOBAL TOURISM AND TRAVEL DISTRIBUTION: changes, impacts and opportunity for Australian tourism CONTENTS SUMMARY X Objectives of Study x Methodology xi Key Findings xii Future Action and Implications xiv DISTRIBUTION CHANNELS IN AUSTRALIAN TOURISM 1 Introduction 1 Definitions of Distribution 1 Why Distribution is Important in Travel, Tourism and Hospitality 2 Distribution Used to be Ignored 2 Major Participants in the Distribution System 2 Distribution and Information and Communications Technology 8 Distribution in the Future 9 Potential Impacts of Changes 14 Future Form of Distribution 15 SOCIAL TRAVEL & TECHNOLOGY2015 AND BEYOND OPPORTUNITIES FOR: AUSTRALIAN TRAVEL AND TOURISM 17 Scenarios 2015 17 Future Traveller Tribes 2020 17 Future of Free Time 18 Towards 2015 Shaping Tomorrow’s Tourism 19 Megatrends in Travel technology and Tourism 20 Social Search & Travel 27 GDS Disinter-remediation 33 The Travel and Tourism Verticalisation of Social Networks 36 Yield Management Strategies in a World of Rich Media and Social Networks 37 2015 Scenario and Recommendations for Travel Industry 2015 38 AUSTRALIAN TRAVELLERS: DISTRIBUTION TRENDS: A ROY MORGAN ANALYSIS 40 Conclusion 56 SURVEY OF BANGKOK AIRPORT TRANSIT PASSENGERS EN ROUTE TO AUSTRALIA 57 Respondent Profile 57 Booking of Accommodation 59 Utilisation of the Internet 60 iii GLOBAL TOURISM AND TRAVEL DISTRIBUTION: changes, impacts and opportunity for Australian tourism Social Networks 60 Summary 62 SURVEY OF INTERNATIONAL TRAVELLERS IN THE USA 63 Packaged Travel 64 Purchase of Transportation, Accommodation and Attractions before and during Travel 66 Sources of Information for Transportation, Accommodation and Attractions 69 Use of the Internet and Social Networking 70 Online Travel Agents 71 Conclusion 72 SURVEY OF UK INTERNATIONAL TRAVELLERS 73 Internet and Social Network Usage 81 Conclusion 82 CONCLUSIONS 84 Key Findings 84 Future Action and Implications 86 APPENDIX A: TRAVEL STARTUPS AND INNOVATION 88 APPENDIX B: RESPONDENT PROFILE BANGKOK AIRPORT STUDY 92 APPENDIX C: RESPONDENT PROFILE USA STUDY 96 APPENDIX D: RESPONDENT PROFILE UK STUDY 100 REFERENCES 105 AUTHORS 110 iv GLOBAL TOURISM AND TRAVEL DISTRIBUTION: changes, impacts and opportunity for Australian tourism LIST OF FIGURES Figure 1 The interaction of various participants in the distribution system 6 Figure 2 Key Travel Purchase Tasks and Milestones 17 Figure 3 Idealised Model of Travel Purchase Tasks 17 Figure 4 Internet of Things 20 Figure 5 Head Mounted Tracker/Display for Immersive Video (Neumann et al 2000) 21 Figure 6 3D TV Viewing at Home via Sky Set Top Box 22 Figure 7 Apple iTravel (Patently Apple) 22 Figure 8 QB Mobile Proxy Robot (Anybots 2010) 24 Figure 9 Australian Segmentation of Technology Megatrends by Technology Reference Group 25 Figure 10 November 2009 PhoCusWright US Online Travel Overview 25 Figure 11 US query share (ComScore 2009) 26 Figure 12 Forrester (2009) Forecast of Interactive Travel Advertising (US only) 26 Figure 13 Landscape of Social Travel and OTAs 29 Figure 14 Landscape of Travel Sites Centric Around wikitravel Content 30 Figure 15 Blog Mentions Sydney Opera House, TaJ Mahal & Great Wall China 31 Figure 16 Social Travel Guides – Traffic to April 2010 for Most Visited Guides 32 Figure 17 Traditional Plane Ticket Purchasing Chain 34 Figure 18 Phase I SABRE: Beginning Disinteremediation 34 Figure 19 Phase II: Rewards Programs – Frequent Flyer and Hotel Rewards Increase Disinteremediation 35 Figure 20 Credit Cards Intensify Disinteremediation 35 Figure 21 Ancillary Revenue US Airlines Source: BTS, 2009, Form 41; Schedule P1.2) 38 Figure 22 Information Sources Last Overseas Trip 2001 to 2010 45 Figure 23 Booking Sources Used - Last Trip was Overseas 2001 to 2010 46 Figure 24 Booking Methods Used - Last Trip was Domestic 2005 to 2010 47 Figure 25 Booking Methods Used - Last Trip was Overseas APRIL 2000 - MARCH 2010 48 v GLOBAL TOURISM AND TRAVEL DISTRIBUTION: changes, impacts and opportunity for Australian tourism LIST OF TABLES Table 1 Number of travel agents in Australia 2004 5 Table 2 Information Sources for Last Domestic Trip. 41 Table 3 Information Sources Used - Last Holiday/Leisure Trip was Overseas 2001 to 2004 42 Table 4 Information Sources Used - Last Holiday/Leisure Trip was Overseas 2004 to 2007 43 Table 5 Information Sources Used - Last Holiday/Leisure Trip was Overseas 2007 to 2010 44 Table 6 Information Sources Used - Last Holiday/Leisure Trip was Overseas 45 Table 7 Booking Sources Used - Last Trip was Domestic 46 Table 8 Booking Sources Used - Last Trip was Overseas 2010 47 Table 9 Booking Methods Used - Last Trip was Overseas April 2009 to March 2010 48 Table 10 Media Most Useful for Travel by Intenders & Travellers 49 Table 11 Word of Mouth by Intenders and Travellers (Friends and family ask my advice OR I ask for advice) 50 Table 12 Which products have you bought using the Internet in the last 3 months? 51 Table 13 Demographic profiles (Residence and Gender) of Travellers whose last trip was overseas by Methods & Sources of Booking 52 Table 14 Demographic profiles (Age, Education and Occupation) of Travellers whose last trip was overseas by Methods & Sources of Booking 53 Table 15 Demographic profiles (Income) of Travellers whose last trip was overseas by Methods & Sources of Booking 55 Table 16 Demographic profiles (Marital Status and Country of Birth) of Travellers whose last trip was overseas by Methods & Sources of Booking 56 Table 17 Sources Hear about Australia 57 Table 18 Information About Australia 58 Table 19 Airfare Booking 58 Table 20 Source of Airfare Booking 58 Table 21 Purchase of Accommodation 59 Table 22 Method of purchase of accommodation 59 Table 23 Source of accommodation booking 59 Table 24 Source of information for accommodation 60 Table 25 Utilisation of the Internet 60 Table 26 Web sites accessed 61 Table 27 Reasons that respondents joined social net working sites 62 Table 28 Information sources about destination 63 Table 29 Who did you travel with on this trip? 63 Table 30 Parts of trip booked in advance 64 Table 31 What parts of the overseas trip to your main destination did you book when you arrived at the destination? 65 vi GLOBAL TOURISM AND TRAVEL DISTRIBUTION: changes, impacts and opportunity for Australian tourism Table 32 Travel as part of Package 65 Table 33 Type of Package 65 Table 34 Who did you purchase the package from? 66 Table 35 How did you book your overseas package? 66 Table 36 Transport to Destination: Who did you purchase the travel components of your trip from? 66 Table 37 Transport at Destination: Who did you purchase the travel components of your trip from? 67 Table 38 Accommodation: Who did you purchase the travel components of your trip from? 67 Table 39 Activities/Attractions: Who did you purchase the travel components of your trip from? 67 Table 40 Transport to Destination: How did you book the main travel components of your overseas trip? 68 Table 41 Transport at Destination: How did you book
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