Leveraging tourism trends from Destination Australia 2024

I was excited to again virtually attend this year's Destination Australia 2024 conference, hosted by Tourism Australia to stay informed on the latest tourism industry trends. This conference is a must-do to set the scene and priorities for the year ahead and capture insights and opportunities for tourism operators.

This year’s conference theme was ‘The next chapter for sustainable growth’ and this sentiment was discussed with senior industry leaders across the aviation, leisure, and business events sectors. It really hit home that economic outcomes aren’t going to cut it anymore and that the industry needs to find the right balance between visitors, the environment, and respecting host communities.

Phillipa Harrison, Managing Director of Tourism Australia opened the conference by highlighting the importance of international visitation to Australia as Australians are heading offshore and the current sector challenges of cost-of-living pressures, aviation prices and capacity, increasing global investment in destination infrastructure, and increasing costs of destination marketing.

Phillipa outlined Tourism Australia’s strategy and priorities for 2024 with eight focus areas that I wanted to share with you and provide some practical tips and opportunities for the industry.

Image: Phillipa Harrison, Managing Director of Tourism Australia presenting at Destination Australia 2024

Tourism Australia Focal Points in 2024

1.     There’s a heightened sense of purpose, and connection to community and culture

Sustainability is at the forefront of consumers' mindset with consideration for place and the planet and this is a consideration for all travellers in particular younger travellers who are the emerging generation of high-yielding experience seekers. They are looking for more authentic connections to the community and local culture and looking to do it with a lighter footprint.

Tip: Communicate to your audience how you are contributing to reducing your impact on the environment, working with the local community and respecting local culture.

2.     Premium is being redefined with a focus on wellness and adventure

Targeting luxury travellers will be a continued focus via the promotion of wellness and adventure experiences as self-care and longevity are being prioritised by consumers. Tourism Australia will carry this theme throughout its campaigns, storyteller programs and signature experiences collective. Adventure forms part of this narrative as getting into nature and being in the outdoors relates to wellness. New products have come online catering to this market including new hot springs trails, walks, rooms with air purifiers, and cycadean rhythm lighting.

Tip: If you are looking to capture a piece of the wellness pie think how you can incorporate moments of wellness into your experience and communicate it to your audience. It could be connecting guests with the outdoors, enjoying premium fresh local foods, and in-room aromatherapy products to enhance the guest experience and promote relaxation.

3.     Changes in the distribution landscape are accelerating

A high portion of holiday bookings are going directly to airline websites and according to the International Visitor Survey, one in five holiday bookings are going to an airline. In addition, there has been a significant increase in OTA bookings across several markets and this trend will likely be accelerated by the adoption of generative AI platforms which enable more complex planning and booking without human intervention. So for a distant and complex destination like Australia, gen AI does have the capacity to personalise itineraries at pace and at scale.

Phillipa noted the current shift to more direct and online bookings is at the more transactional end of the market and that the luxury market demanding tailored tours still requires a personalisation service that only travel planners can offer.

Tip: Monitor your sales channels and identify any major shifts in your portion of sales across key distribution channels and adjust your commissions accordingly.

4.     Back of house is coming to the fore, with the continued emergence of agritourism

One of Australia’s core competitive advantages particularly among repeat visitors is agritourism which now sees consumers wanting to experience beyond the dining table. With Australia’s world-class food offering it’s important that we communicate the quality of our produce and where it comes from. Tourism Australia is working with state tourism organisations on more product development that will drive visitation into regional Australia.  

Tip: Consider how you may be able to incorporate or package agritourism experiences into your tour offerings or if you are a producer and are interested in exploring tourism to diversify your business revenue streams make contact with Alex Brown Project Co. to assist you navigate the complex tourism landscape.

5.     The growth of the east is there for the taking, as travel closer to home becomes more popular

This trend is driven by many factors from accessibility, trade and business ties, visiting friends and relatives, sustainability concerns, and pricing and if we don’t cease this moment our competitors will. The industry collectively needs to improve its offerings for the Asia markets as consumer preferences have changed considerably in the last couple of years.

Insights were shared on the growth potential of the Indian middle class, with the country’s population of 1.4 billion people, the middle class now represents 31% of India’s population and is projected to hit 38% by 2031 and 60% by 2047. 65% of India’s middle-class population is under 35 years old and the middle-class population is expected to soar to 550 million people by 2025 with international outbound departures reaching over 50 million by 2030) Source: Skift.

Tip:  Consider your tourism product and how appealing it is to the Eastern hemisphere markets, and identify what product adjustments can be made to suit particular markets. Gain more market insights from the SA International Market Profiles or the Future of Demand Research.

6.     The lure of influencers continues to captivate travellers to “set-jet” and gig trip”

It is always challenging to sift through the good and the bad content creators and to find quality over quantity however when you do get it right, influencers have the power to extend your reach. Consumers are “always on” scrolling on their mobile devices gaining holiday inspo and we’ve seen the recent impact that the Taylor Swift Eras Tour has had on global tourism.

Tip: Make sure when you're working with content creators that you are promoting the right message, with the right talent (influencer) who has the right audience. You’ll benefit from getting your story out in a cost-effective way.

7.     Preference for modes of travel continue to shift, with a surge in cruise, and self-drive.

This year 81 cruise ships are operating in Australian waters, a 14% increase compared to last year with a total capacity that is 42% higher than it was last year, highlighting a change in consumer preferences. Consumers across all markets are self-driving to reach wide open spaces and seek local authentic experiences.  

Tip: Consider targeting the cruise ship sector to drive business growth and promote your positioning on any significant self-drive touring routes to capture this market as well as maintaining an up-to-date ATDW listing.

8.     Business events continue to drive demand and repeat visitation.

Bleisure travel is a trend that will continue as many individuals can work from anywhere. Business events will continue to drive demand and repeat visitation and Australia is well positioned to capture this market, with the average business events visitor spending 74% more than the average visitor. 60% of meeting attendees are likely to extend for leisure purposes next year and two-thirds of business delegates are going to bring their partner and extend their stay.

Tip: If you have capacity for groups consider working with business events organisations to join pre and post-touring programs. Alternatively, accommodation providers can offer delegates special packages to extend their stay (e.g. stay for 3 nights, but pay for 2 nights).  

Alex Brown, tourism development consultant takes pride in being at the forefront of the tourism industry to share the latest knowledge and insights when working on business planning and strategies for tourism operators or providing tourism mentoring to the industry. Make contact with Alex Brown if you would like to discuss implementing strategies into your business for the year ahead.

Grants set to boost South Australia’s visitor economy

This month I wanted to highlight a variety of upcoming grant opportunities during March, April and May 2024 to support strategic growth for South Australia’s cultural tourism sector.

Grants present an opportunity to leverage governments funds for the development of new and improved tourism experiences, events and assets. They are worth assessing to identify if your business or community could secure financial support for the coming years.

The Regional Events Fund offers funding to support vibrant regional events that attract visitors, stimulate local economies and elevate their brand exposure. The grants offered by Events South Australia act as a catalyst for creativity and innovation to deliver exceptional regional experiences for both locals and visitors. The 2024-25 fund will support events between 1 September 2024 to 31 August 2025 and be offered in two streams – Established Event Funding offering up to three years’ funding from $20,000 - $50,000 per year and Developing Event Funding offering up to three years’ funding from $5,000 to $20,000 per year. Read about Alex Brown Project Company’s success with securing sponsorship dollars for the South Australian Wooden Boat Festival here.

The new Activating Heritage Tourism Small Grants program supports heritage sites and tourism operators offering heritage themed tours and immersive experiences to capitalise on the growing interest in cultural tourism. Financial support from $5,000 to $15,000 will be offered by the Department for Environment and Water (DEW) and the Tourism Industry Council SA (TICSA) to projects that celebrate and preserve South Australia’s unique heritage, contributing to sustainable tourism development.

The 2024-25 Heritage Conservation Grants are now open and empower businesses to safeguard and revitalize historic landmarks and properties by investing in conservation efforts, backed by the DEW. Businesses not only contribute to the preservation of South Australia’s heritage but also enhance the appeal of their offerings to heritage-conscious travellers. Grants from $1,000 up to $20,000 are available for conservation work or documentation.

If you are considering applying for one of the above grants and require assistance with grant writing, product development or project guidance please make contact with Alex Brown, Adelaide tourism development consultant to discuss your project. Consider your timelines and the grant deadlines to allow for a quality submission to be prepared and don’t forget to carefully read the guidelines to see if your business and project are eligible.

You may be eligible to access one hour of complimentary business mentoring via the Southern Business Mentoring Program or subsidised mentoring via the Tourism Industry Council of South Australia’s Business Capabilities Program.

Image credits: SA Media Gallery - Adelaide Railway Station, joey joenes (Joseph Nes), Moonta Mines, @dylangaston_ , Mill Estate, Get Clicked, South Australian Wooden Boat Festival.