International Market Briefing 21 November 2006

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International Market Briefing21 November 2006

• Russell Mills
• Regional Director United Kingdom Ireland

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This is why Brits think theres no place in the
world like Sydney.
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Market Summary

• The UK is NSWs largest single source market,
  steady growth since 2003
• Holiday/leisure visitors up 5 YE Jun 06
• Trend toward greater spend, more holiday visitor
  nights
• New growth for Australia static, first time
  recruitment a challenge
• NSW attracts the longest length of stay for VFR
• NSW attract 85 of UK backpackers to Australia,
  slight recovery from this segment
• UK has the highest expenditure (over 600m) of
  all intnl markets (more in NSW than in any other
  state)
• excluding package expenditure, Source IVS June
  2006

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Market Intelligence Trends

• General climate despite rising fuel costs and
  airline taxes impacting on margins, market is
  solid, steady, but increasingly challenging.
  Ashes a performance bonus for Australia, US a big
  loser
• Trade Continued march of online as a lead
  generation / planning / research and booking tool
• Trade survival of the fittest, diversify,
  consolidate, find your niche, amalgamate or die.
• Consumer - its the environment, stupid!
• Consumer Shorter booking periods, reduced
  airline seat sales, stronger yield, flattening
  peaks and troughs,
• Consumer security aware, yet You Only Live Once
• Forward Bookings strong to March, but
  recruitment of first time visitors is slower than
  repeat visitors.
• Brand Australia phenomenal PR value from launch,
  still too early to judge

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Market Intelligence Trends
Source Hitwise, Jun 06
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Market Intelligence Trends

• Could do better
• Travel 2
• Qantas Holidays

• Strong performers
• Gold Medal/Airline Network
• Travelbag
• STA Travel
• Tailormade Travel
• Trailfinders
• Austravel

• New Horizons
• Thomas Cook
• Flight Centre
• Harvey World Travel
• Lotus Group
• Australia Travel Market

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Aviation Update

• Key Issues
• Aircraft availability and Capacity
• Delays in delivery of A380 impacting on carrier
  growth plans
• Code sharing increasingly important as new hubs
  emerge
• Qantas, Emirates, Singapore dominate market share
• British Airways and Virgin Atlantic the UK flag
  carriers
• Continued strong demand in premium travel
• Etihad, Sri Lankan, Jet Airways, Air China may
  become important players
• Consolidation of Dragon Air, Cathay Pacific and
  mutual stakeholding with Air China sets up Hong
  Kong for strong growth as Chinas hub
• Fuel taxes and Australian regulations
• Fuel costs (and thus taxes) now up to AUD185 per
  sector some relief in sight as QF announce
  decrease from AUD185 to AUD170 per sector
  UK-Europe
• Lack of progress with Australian regulatory
  reform and strict bilateral conditions stalling
  growth
• Source Tourism Australia aviation update ATE
  2006, Sept 2006

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Market StrategyDestination NSW, its products,
its experiences

• Educate, train and incentivise wholesale, retail
  and direct sell trade
• Product development focusing on deeper
  understanding of Sydney and extending to
  destinations beyond
• Stimulate consumer demand through PR , promotions
  and media relations events, experiences e.g.
  Sydney Style, Sydney Festival,
• Broker business development opportunities for
  NSW-based industry

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Market StrategyDestination NSW, its products,
its experiences
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Current Market ActivitiesThomas Cook Training DVD

• a dedicated NSW training resource for Thomas
  Cooks 577 strong retail network to be rolled out
  in December and through 2007 via an intranet.

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Current Market ActivitiesThomas Cook Ashes Flyer

• Distribution to Thomas Cook Ashes clients
  (official travel agent of the ECB), features 20
  off offers to Sydney and NSW product who
  responded to the marketing prospectus

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Current Market ActivitiesAussie Specialist
Famils Training Workshops

• UK/IE mix of direct sell consultants from key
  accounts and independent retail agents, all
  ASP,all qualified, all committed. Themed around
  Aust Experiences, focused on Sydney Surrounds
  regions
• With Kuoni, Austravel as part of campaigns,
  Harvey World Travel, and in Ireland with Joe
  Walsh Tours, Trailfinders and Ebookers

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Current Market ActivitiesKuoni Coast to Coast
Phase 2 Oct 06 Trade Media, Email blast, Coast
to Coast banner campaign
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Current Market ActivitiesIrish Market

• Trade training
• Consumer events
• Reader promotions
• Advertorials
• Media events
• Broadcast opportunities

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Current Market ActivitiesSydney Festival Campaign
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Current Market ActivitiesPublic Relations

• Toast Australia
• Bill Granger Media Breakfast
• Priscilla Queen of The Desert Promotion
  Guardian Unlimited
• Sydney and NSW Uncovered quarterly newsletter
• Landrover Outback Promotion (VJP) John Arlidge
• Virgin Atlantic joint PR

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Future Activities 2006-07

• Participation in tactical campaigns market
  exposure, incremental business, new distribution
• Tailormade Travel New South Wales a la Carte
  tactical campaign Feb 2007
• Gold Medal Sydney Rock and Reef - Mar 07
• Trailfinders, Austravel and Travelmood magazines
• Travelbag Australian Experiences Coast to Coast

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Future Activities 2006-07

• maximise potential of PR
• advertorial promotions, press trips, media
  releases, events prize sponsorship
• Guardian/Wanderlust Sydney, North Coast
  Northern Rivers Nov 06
• BBC Holiday Sydney, Illawarra South Coast
  Dec 06
• Ashes Media Nov-Dec 06
• Elle Decoration Sydney and Lord Howe
• Sydney Style Press Trip - March
• Sydney Style Reader Event Collette Dinnigan -
  Harrods

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Future Activities 2006-07

• Training and incentivisation of trade
• Advertising on Aussie Specialist/NSW Specialist
  Program
• Virgin Atlantic Premium Travel Famil Feb 07
• NSW Sales Mission UK/Germany Mar 07
• UK Product Managers Famil - South Coast Mar/Apr
  07
• Qantas Regional Training Roadshow (07 TBC)
• ATEC/ATE trade/trade media famils to
  Byron/Tweed Apr/May 07
• Aussie Specialist Famil UK/IE Beach Culture
  theme Mar 07
• TNSW Training DVD

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Future Activities 2006-07

• Where are the new Distribution Opportunities?
• Lotus Group
• Thomas Cook
• Isango! www.isango.com
• Australia Travel Market www.australiatravelmarket
  .com
• Flight Centre
• Abercrombie Kent
• Scott Dunn Associates

• What kind of new Australian product is right for
  the UK market?
• Competitively priced, soft adventure, special
  interest, responsible travel, unique locations,
  eco tourism, experience-led, small escorted
  touring, high end product that marries quality,
  comfort and nature.