Outside In 2012 New Zealand by ISCI8UCB

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									Market Analysis Outlines for TATAP 2013


1. Market Situation/ Market Performance
Inbound to Thailand:
        In 2011, 103,563 growth rate from 2010 to 2011 or increased 15.89%
        In 2012, 113,613 growth rate is predicted to grow 10%
        Expenditure per trip increased by 10.85%
        Tourism Receipts increased by 10.9%
        Thailand was ranked 8th in the Top 10 Outbound Destinations visited by New Zealanders
         during the 12 month period February 2011/February 2012

Inbound to Competitors:

2. Market Trend 2012-2013
Outbound Market Trend 2012-2013:
Short breaks still popular to close by destinations, such as Australia and Pacific Islands. Thailand is a
popular destination according to wholesalers.

Most of Outbound Trend is categorised as following below;

        Couples – Leisure/Spa
        Families – Leisure/Culture
        Backpackers - Leisure/Adventure

New Market Segment Trend 2012-2013:
Potential Groups

        Medical
        Shopping/Cuisine (Cooking Classes)
        Seniors

Family

        Travel mainly during School Holidays (Easter through September) – although if price is right
         will travel outside these
        Looking for mainly beach destinations within Thailand – Phuket is a no.1 beach destination
        Need activities and Attractions to keep children amused – Siam Safari, Phuket Fantasea,
         Island trips, Safari world, etc
        Mainly purchase Packaged deals put together by wholesalers, some internet booking

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Spa

         Like to stay in upmarket hotels with good spa facilities
         Travel Year round
         Normally travel as couples
         Like to relax and not be rushed
         Big spenders
         Will incorporate shopping
         Purchase packages and use internet

Honeymoon and Wedding

         Currently small market. Has huge potential and currently working with Operators to
          increase
         Beach Destinations most popular
         Traditionally Honeymoon period is Between September and April, whilst marriage overseas
          no set pattern
         Marriage overseas normally has add on group between 10 and 50 guests
         Like to visit tourist attractions
         Traditionally have good dollar spend

Golf

         Mainly between April and October
         Group Travel and FIT Travel
         Groups of friends from Golf Clubs
         Husband and Wife
         2 types of Golf Market – 1st are those who like to have 1 or 2 games whilst on holiday - 2nd
          are those who travel to only play golf, normally with group
         Non golfing partners do travel and require other options such as shopping, spa, beach
         Will visit local attractions on non golfing days
         Have good dollar spend and like staying close to Golf resorts/clubs
         Mixture of using Tour Operator and organising individually on internet

MICE

         Growing market
         Normally start organising 18 months to 2 years prior to travel
         Can be very demanding with what requirements needed
         Travel period varies normally between March and October
         Good Dollar spend
         Like to visit local attractions as part of day off from meeting or incentive




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3. Market Analysis
(External and Internal Factors/ SWOT Analysis/Marketing Strategies and Projects)

Overall - Outbound travel overall has slowly been increasing. In December 2011 an increase of 6%
over the previous December was showing. This was the highest ever recording for a December and
only the second highest ever. Total trips for December were 218,900.

In January 2012 compared with January 2011:

       Visitor arrivals (266,800) were up 1,300. The biggest changes were in arrivals from:
       China (up 8,800)
       Australia (up 1,500)
       Japan (down 3,000)
       The United Kingdom (down 4,400).
       Overseas trips by New Zealand residents (129,100) were up 11,400. The biggest changes
        were in departures to:
       Australia (up 3,800)
       The United States (up 1,300)
       Fiji (up 1,100).

In 2011 saw travel down for various reasons with the major reason being the holding of the Rugby
World Cup in New Zealand.

In February 2012 compared with February 2011:

       Visitor arrivals (259,100) were down 9,200. The biggest changes were in arrivals from:

        - Australia (up 2,000)
        - Hong Kong (down 1,100)
        - Japan (down 2,300)
        - China (down 2,700)
        - The United Kingdom (down 4,200).
       Overseas trips by New Zealand residents (116,400) were up 12,900. The biggest changes
        were in departures to:
        - Australia (up 6,900)
        - The United States (up 1,300).

With the NZ Economy looking favorable for the next year it is envisaged that overseas departures
will continue to climb monthly. The table below shows the comparable short term departures Year
Ended February for last 3 years.

*Look Short-Term New Zealand-resident traveler departures figure at Appendix 1 on page 11

To Thailand – In December, Year on Year travelers travel to Thailand have been seen an increase by
approx 8,300 over the same 12 months in 2010. Market size to Thailand is two fold and consists of
those who are visiting Thailand as their final destination and those who utilise Thailand as a stopover
to UK/Europe. This is main reason statistics NZ and Thailand Statistics differ in numbers. What is
telling though is that both set of numbers show a significant increase in visitor arrivals to Thailand


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from NZ, as above table shows from statistics NZ Thailand visitor numbers from NZ were up by
30.1%

Success with Thailand in the NZ market has been mainly to the pro active efforts of the Wholesalers
that TAT Representative office works with and all Wholesalers enjoying selling Thailand. Considering
the limited budgets that we get to assist wholesalers with promotion of Thailand they do a very good
marketing effort in putting packages into the NZ market without a lot of assistance. However with
new direct destinations coming on line such as Bali we are not sure how much longer these free
marketing efforts will continue.

Recently House of Travel a leading retail Brand has published its top 10 destinations and Thailand
featured in this.

External Factors:
      Increased non-direct air capacity with the introduction of low cost airlines and competitive
       pricing
      Online environment – Internet, Smart phones, I-Pads
      Social Media – Face book, Twitter
      Smart Phone Applications

Internal Factors:
      Continued growth is expected
      A high NZ dollar, making International travel attractive
      Increased household incomes/change in consumption
      Aging NZ population – time/money
      *32% of NZ population are between age of 40 and 64 with 12% being aged 65+ (Currently
       retirement age is 65)

*Source – TRA




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SWOT Analysis:
Strengths and Weaknesses of Thailand in terms of:

Tourism Products:

STRENGTHS                                           WEAKNESSES

      Varied selection of Tourism Products               Hotels trying to deal direct to consumer
                                                           and cutting out wholesalers
      Family Friendly Activities
                                                          Lack of sufficient budgets for joint
      Friendliness of Thai People                         promotions
      All Market segments covered such as                Lack of direct access to Thailand (Only 4
       Mice, Leisure, Niche Markets                        -5 direct flights per week depending on
                                                           time of year)
      Value for Money

Thailand Brand:

STRENGTHS                                           WEAKNESSES

      Catchy Slogans i.e. Amazing Thailand,              Lack of printed material especially maps
       Amazing Value
                                                          Bad Press Coverage
      Popular Destination
                                                          Lack of direct access
      All market segments as above

      Thai Friendliness

Economic and Political Situation:

STRENGTHS                                       WEAKNESSES

      Government seems to be stable                      Lack of Budgets for promotion of
                                                           Thailand
      Problems solved quickly

      Baht holding good against NZD

OPPORTUNITIES                                   THREATS

      NZ has an aging population (baby                   Terrorist Attacks
       boomers)
                                                          Bad media coverage of incidents
      NZ Economy seems to be holding its own
       and business positive outlook                      Unpredictable disasters

      Increased direct Air                               Further direct air access cut backs



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Market Trend:

OPPORTUNITIES                                        THREATS

         Medical Tourism                                  Competitor Marketing

         Aging Population - Baby Boomers                  Bad Media on such things as Medical
          coming to retirement years excess                 Tourism - For and against
          income to travel
                                                           Lack of direct Air Access
         Other niche markets



Worldwide Environment/Competitors:

OPPORTUNITIES                                        THREATS

         Closer wholesale relationships       for         Bali - Air NZ direct access 4 times per
          market packaged product                           week from June

         Smart      Phone      applications   on          Increased advertising exposure from
          destinations within Thailand                      Pacific Islands - short flights

         Increased Direct Air access                      Cruising - becoming popular vacation
                                                            option although last stats show 1% of NZ
         User friendly websites                            sailed
         Using more social media such as                  New Tourism Board openings - India
          facebook, twitter etc                             looking to open NZ office



MARKETING STRATEGIES AND PROJECTS:
For the 2013 year we will be concentrating on the following areas for our Marketing:

Leisure

Niche Markets

         Medical Tourism

         Honeymoon and Wedding

         Golfing Holidays




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4. Product Analysis
     Existing Product and New Product
      Existing Product :

  Stay-put beach packages

  Spa Packages

  Adventure Travel

      New Product

  Group Medical Tours

  Golf package add-ons i.e “Caddy & Cart”

  Island Overnight Cruises

      Potential Product

  Golfing Packages

  Medical Packages

  Wedding/Honeymoon

     Best Selling Destination in Short and Long Haul
      - Long Haul - China
      - Short Haul - Australia

5. Tips or Tactic for Private Sectors
     Thai Airlines fly ex Auckland directly to Bangkok 5 times a week from July to September it
      will change to 4 times a week
     Average stay of a Kiwi visitor in Thailand is 7-10 days
     The average number of nights stayed

      -   Bangkok = 1-2 nights
      -   Phuket, Koh Samui, Krabi = 5-10 nights (a 10-night stay may include 1-2 nights on an
          outer Island)
      -   Chiang Mai 2-3-nights

     Kiwis see Thailand as good value for their money once they arrive. They like package
      inclusions offering return airport transfers, daily breakfasts, activity classes, spa sessions &
      tours. More Kiwis will sightsee their destination if a City or Island tour is included in the
      package
     Advise our office of Agents Rates & we will pass them on to the industry, An agents personal
      experience goes a long way towards a recommendation

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      Frequent contact with your Wholesale Partners will encourage on-going recommendation
       for your Hotel or Tour Activity year round.
      Most popular time for Kiwis to travel to Thailand is during the NZ Winter Season traditionally
       May-Sept.

6. Trade Show, Road Show and all list of main tour operator for
selling Thailand
Trade Show and Road Show
      TAT Road show
      JAWS Plus Road show
      PAICE Expo for MICE




The main Wholesalers who sell Thailand are listed as following below;
      House of Travel (Leisure)
      Go Holidays (Leisure/Group market)
      Classic Asia (Up market Accommodation)
      Active Asia (Specialist in Adventure Tourism)
      Royal Orchid Holidays (Thai Airways)
      Infinity Holidays (Flight Centre)
      Your Weddings (Wedding Planner/Designer)
      Your Travel (Group Tours)
      Our Asia (Leisure/Up market)
      Stunning Makeovers – (Medical Tourism)

Summary
   •   NZ’s mainly travel to Thailand during their Autumn/Winter season traditionally May –
       September.

   •   Majority of travel is on packages put together by wholesalers

   •   Include attractions or specialised activities i.e. spa, massage, cooking class for added value
       which is good for family market

   •   New Zealanders love Thailand and do return for repeat visits

   •   New Zealanders are not required to obtain a visa when entering Thailand for tourism
       purposes and will be permitted to stay in the Kingdom for a period of not exceeding 30 days
       on each visit.



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APPENDIX 1
*Short-Term New Zealand-resident traveler departures figure

Short-term New Zealand-resident traveller departures (1)
By country of main destination
                                          February month                   Year ended February                       Change from 2011
                                                                                                                 Month                 Year
Country of main destination
                                   2010       2011         2012       2010         2011         2012
                                                                                                          Number     Percent    Number       Percent



Oceania                           67,454      67,454       73,720   1,188,973    1,234,355    1,251,712     6,266       9.3      17,357        1.4
  Australia                       56,840      56,666       63,540     944,857      978,120      985,042     6,874      12.1       6,922        0.7
  Cook Islands                     2,407       2,552        2,580      55,882       60,353       66,642        28       1.1       6,289       10.4
  Fiji                             3,277       3,451        3,220      94,590       97,310      102,282      -231      -6.7       4,972        5.1
  New Caledonia                      174         232          220       7,006        8,803        8,016       -12      -5.2        -787       -8.9
  Samoa                            2,494       2,175        2,120      42,230       43,900       42,242       -55      -2.5      -1,658       -3.8
  Tonga                              696         928          600      16,577       17,014       17,128      -328     -35.3         114        0.7
  Vanuatu                            348         203          260      11,659       11,360       10,930        57      28.1        -430       -3.8


Asia                              14,993      14,210       16,460    255,416       273,358     309,874      2,250      15.8      36,516        13.4
  China, People's Republic of      3,538       2,146        2,720     57,510        63,660      69,120        574      26.7       5,460         8.6
  Hong Kong (SAR)                    783         812          860     17,147        17,258      18,074         48       5.9         816         4.7
  India                            2,639       2,726        3,220     30,034        31,937      36,396        494      18.1       4,459        14.0
  Indonesia                          580         464          680     12,753        14,959      17,738        216      46.6       2,779        18.6
  Japan                              783       1,189          940     19,016        20,902      15,784       -249     -20.9      -5,118       -24.5
  Korea, Republic of                 609         841          580     13,397        13,873      15,126       -261     -31.0       1,253         9.0
  Malaysia                         1,131         899        1,180     16,745        18,340      24,600        281      31.3       6,260        34.1
  Philippines                        406         667          700     10,259        12,729      14,778         33       4.9       2,049        16.1
  Singapore                          638         696        1,220     14,500        14,563      21,348        524      75.3       6,785        46.6
  Taiw an                            899         551          640     10,364        11,716      10,672         89      16.2      -1,044        -8.9
  Thailand                         1,653       1,682        2,220     30,779        28,526      37,114        538      32.0       8,588        30.1
  Viet Nam                           609         435          600      8,989        10,199      12,390        165      37.9       2,191        21.5


Europe                              4,089      3,393        5,000    154,840       167,427     172,884      1,607        47.4     5,457        3.3
   France                             232        203          300     12,134        13,777      13,702         97        47.8       -75       -0.5
   Germany                            406        290          540     11,630        12,315      12,042        250        86.2      -273       -2.2
   Italy                              145         58          100      8,996        10,834      13,062         42        72.4     2,228       20.6
   Netherlands                        116        116          200      5,588         6,436       6,792         84        72.4       356        5.5
   United Kingdom                   2,552      2,001        2,640     87,425        92,043      93,584        639        31.9     1,541        1.7


Am ericas                           6,119      6,467        7,740    123,759       134,976     141,724      1,273        19.7     6,748        5.0
  Canada                              899        783          840     18,993        19,231      19,444         57         7.3       213        1.1
  United States of America          4,176      4,379        5,660     87,733        99,619     106,918      1,281        29.3     7,299        7.3


Africa and the Middle East          2,030      2,552        1,800     35,237        41,010       36,016      -752     -29.5      -4,994       -12.2
   South Africa                       870      1,044          760     13,934        16,334       14,724      -284     -27.2      -1,610        -9.9


Not stated                          9,280      9,744       11,780    167,666       186,918     208,078      2,036        20.9    21,160       11.3


Total(2)                         104,009     103,521    116,391     1,927,319    2,036,718    2,116,909    12,870        12.4    80,191        3.9


1. New Zealand residents departing New Zealand for an absence of less than 12 months.
2. These totals are actual counts and may differ from the sum of individual figures for different countries that are derived from samples.

Note: SAR Special Administrative Region

Source: Statistics New Zealand




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