Tourism marketing agency GTI, and the company’s global travel alliance partner Travel Consul, has released the findings of its recent (11-25 May 2020) survey of 40 travel executives, revealing the propensity of the industry to seriously consider new travel suppliers, as tour operators and travel agency owners seek new product in a post COVID-19 landscape and respond to changing consumer needs.
The survey was undertaken in order to better understand the impact of the pandemic on the Australian tourism industry and what is required to get the industry back on its feet.
The results include:
Business implications of COVID-19
Overall, the Australian tourism industry expects a 75 per cent decrease in business volume in Q3 2020 and a 65 per cent decrease in Q4 2020. 67 per cent of respondents anticipate being able to sustain their businesses for one to six months without government financial support.
Actions implemented during the crisis
Approximately half of respondents reported they are improving their current products; 46 per cent are designing new products; and 38 per cent are investing in technology to enhance product and customer service.
How COVID- 19 is changing the rules in 2020 and beyond
When asked how the role of travel distribution partners will change going forward in order to adapt following the outbreak of COVID-19, 79 per cent of respondents believe that expanding customer communication channels will be among their main undertakings. Other leading responses were diversifying product and destination offerings and creating new partnerships with new buyers or suppliers.
Changing suppliers as consumer needs change
83 per cent of respondents said they would consider suppliers they have never worked with before to accommodate changing consumer needs.
Loyalty to destinations and hotels and resorts is questioned
Almost 80 per cent of respondents said they were extremely likely to consider hotels and resorts they had never sold before. A further 21 per cent said it was somewhat likely they would consider other options.
Marketing efforts for recovery are focused on digital and social media
Regarding marketing activities during recovery, digital and social media were the clear winners with 79 per cent and 75 per cent of respondents claiming that digital and social media marketing respectively were their main focus. Co-op campaigns came in third place.
How destinations can support distribution partners in recovery
When asked how destination organisations (DMOs) can best help travel agencies and tour operators in recovery, the number one answer was inclusion in consumer marketing campaigns with travel agents and tour operators as the call to action. The next top three answers included providing useful and timely information, creating information hubs for trade partners and creating marketing webinars tailored to agents and tour operators.
Tourism associations serve as primary data sources
Concerning the top three data sources that were used for information during the COVID-19 crisis, the Australian federal government lead the pack (71 per cent). This was followed by destination tourist offices, tourism associations and industry friends.
Clients are planning to go to the same destinations
More than 64 per cent of clients who are rebooking or showing some interest in travelling said that they were planning to go to the destination where they had originally booked. 24 per cent said they are waiting to see how the situation evolves before making their decision.
Top communication methods used with clients
In regard to interacting with their clients during the COVID-19 emergency, email leads the communications formula. Interestingly, the telephone was the second most utilised channel. Although gaining popularity, video conference and live chat are less than four per cent of communications methods.
Sarah Anderson, managing director of GTI, said the research is encouraging for COVID-safe destinations and domestic tourism businesses seeking to attract business.
“Many Australian travel businesses are fighting for survival and it’s no surprise the research outlines that many businesses would not have expected to survive the COVID-19 downturn for longer than six months without government assistance,” Sarah said.
“The good news is that almost all Australian travel operators surveyed are being nimble and considering new destinations and suppliers as they respond quickly to market needs.
“With 83 per cent of travel operators considering new suppliers, it is a great time for hotels, resorts and boutique tourism operators to be engaging with wholesalers and retailers to explore new opportunities.”
IMAGE: Australia Zoo – AAT Kings
