Domesticate Study
2011 Key Insights for Domestic Travel
Table of Contents
• Background
• The Current Travel Landscape
• Key Insights
1. Reassurance and Certainty
What does this mean for the Travel Industry?
2. Trading Up, Trading Down
What does this mean for the Travel Industry?
3. Reconnection
What does this mean for the Travel Industry?
Background
The Domesticate™ 2011 study is conducted by TNS Australia annually to analyse why Australians
do or do not travel. For 45 years TNS have been the leaders in tracking market research, needsbased segmentation research, choice modelling, brand equity modelling and online market
research. Each year, TNS speak to over half a million Australians.
Domesticate™ is a Qualitative Approach to research and was conducted in two phases. Phase 1
consisted of a seven day on-line discussion forum which included 45 participants, recruited from
across Australia, conducted in September 2011.
The objective of this phase was to gain detailed insights into the mindset, attitudes and
behaviours of travellers across Australia and understand where we are today versus 2010.
Phase 2 consisted of six, two and a half hour Focus Groups with participants from different states
and life stages.
The Focus Group sessions were held during October/November 2011. Participant Focus Groups
included:
• Older Families and Empty Nesters from Brisbane
• Immigrant Backgrounds and Blended Families from Sydney
• Single Income, No Kids (SINKS), Double Income, No Kids (DINKS) and Younger Families from
Melbourne.
The objective of Phase 2 was to further build upon the areas of interest identified in Phase 1 and
enable further drill downs into key topics by sub-group.
The Current Travel Landscape
According to the most recent TNS Travel Omnibus report, in 2011, we see some encouraging
news for domestic tourism, with one in four Australians (24%) planning on taking more trips
within Australia in the next 12 months, with participants taking shorter, smaller breaks and trips
within Australia.
In the past 12 months, 26% say they have taken a day trip to a region rather than staying
overnight. 24% have taken a shorter trip than they would have otherwise done.
Visiting Friends and Relatives (VFR) still plays a major role in facilitating domestic travel.
• 32% of Australians stayed with a friend or a relative on their last trip
• 46% of Australians have stayed with a friend or relative in Australia in the past 12 months
• 54% have had someone come and stay with them from interstate in the past 12 months
Overseas holidays are still in demand. Some of the key points to note from respondents included:
• Overseas holidays are still viewed as the most valuable experience for Australians.
• Australians feel a sense of urgency that is not as strong for domestic holidays.
• Sense of needing to see the world whilst they are still young enough to do it.
• Feel overseas travel is an exclusive opportunity
• Youth are encouraged to travel to differentiate themselves to employers when entering the job
market.
Insights
There were several key insights that emerged from the 2011 study that can be taken away and incorporated
how we market and deliver to consumers of travel product. They were:
1. Australians are currently seeking reassurance and certainty.
2. The ‘trading up, trading down’ is increasingly reflected in their purchase decisions – including for travel.
How can travel brands position themselves to take advantage of this?
3. The heartland of Australian domestic travel remains reconnection.
How can travel brands position themselves to take advantage of this?
1.
Reassurance and Certainty
Australian’s are feeling overwhelmed and disillusioned. The state of Australian politics in the face of global
financial difficulties causes great concern, and the media are being criticised for encouraging negativity and
creating fear amongst Australians. This instability and fear exists in many other aspects of life.
Australians are currently seeking reassurance and certainty:
• Travel is seen as one of the important enriching life experiences to which status is now attached.
• Where people used to buy things, they now buy experiences.
• Amidst uncertainty, people seeking safe and familiar things.
What does this mean for the Travel Industry?
This has positive implications for the domestic travel industry. Where once status was dependant on
material possessions, more and more we see people attaching status to life experiences.
By tapping into a sense of Nostalgia, Security and Simplicity – Australian Experiences can tap into the
current need for reassurance. By promoting Australia as a ‘no worries’ holiday, backed by experiences that
connect to this more inwardly focused mindset, and showcase experiences that make us feel good about
ourselves and the future
2. Trading Up, Trading Down
The “trading up, trading down” phenomenon is increasingly reflected
in purchase decisions – including travel. The general climate of
uncertainty leaves people seeking safe and familiar things:
• Everything old is new again
• People are looking to save money
Australians are also spending more cautiously, spending less on large
scale indulgences, in favour of smaller treats, looking for deals and
value for money.
What does this mean for the Travel Industry?
Whether it be saving on hotel room rates to attend an event, or having
the ability to pick and choose elements of a package holiday to ‘design’
their own experience, at a price they want to pay.
Tourism operators need to understand who their customers are e.g. who
will save on meals to pay for a great hotel, compared to who will sleep
cheap, and eat more expensive.
This is the ideal climate to promote small scale domestic travel such as
daytrips, short breaks, add on services.
3. Reconnection
The heartland of Australian domestic travel continues to be
about reconnection. When we look back at what Australians
describing as an “ideal” Australian holiday as being familiar,
nostalgic, a family holiday, connecting and unwinding,
relaxation and the beach, experiencing the known and the
familiar, Australian holidays should be built around the
central idea of reconnection.
What this means for industry
Reconnect can take different forms and it’s important
to note this as we don’t want all Australian holidays
look at the same. This ranges from;
• Letting loose and celebrating a Hen’s weekend on
the Gold Coast
• Challenging a group of mates to experience a skiing
trip at Mt. Buller
• Bonding over the simple things with a family
camping trip.
It’s important to look at your product /experience and
determine were it would best sit within the
reconnection spectrum.
About TNS
At the heart of TNS are 12,000 consultants, from over 80 countries, who focus their insatiable curiosity for people, trends and
culture on solving business problems. We advise clients on specific growth strategies around new market entry, innovation,
brand switching and stakeholder management, based on long-established expertise and market leading solutions, At TNS, we
have more conversations with the world’s consumers than anyone else and understand individual human behaviours and
attitudes across every cultural, economic and political region of the world. TNS is part of Kantar, one of the world’s largest
insight, information and consultancy groups servicing over half of the Fortune Top 500 companies. Please visit
www.tnsglobal.com for more information.
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