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Gold Coast City Australia Tourism Report

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Executive Summary

Australian Tourism Industry is one of the largest sectors of the state, contributing $39 billion to the total GDP. It provides employment opportunities to half a million Australians and generates considerable export earnings for the country. One of the beautiful attractions in Australia for the tourists is Gold Coast City that is famous for its natural beauty. Government agencies and private companies have been focusing on attracting more tourists and travellers in the city.

The major challenge which the government of Australia is facing nowadays is the worse impact of the global financial crisis on its tourism industry. In the last two years, the tourism revenues of the state have decreased, especially that of Gold Coast City because of a decrease in the number of tourists. The financial crisis rooted in the US and now influencing other countries of the world, including Australia, is posing great threats to the economies. The Australian tourism industry aims to promote tourism by introducing innovative and effective marketing strategies. The Australian tourism target was $ 6.3 billion for 2014 as compared to $ 3.7 billion in 2002, and it requires a growth rate of 6% to achieve this level. However, there is a gap produced between the targeted and actual status. Although the number of visitors is increasing because of the increasing corporate events; still; the challenge is to close this gap by increasing the length of stay along with the number of tourists. The Government has expected to spend $410 million in Australia’s tourism industry over the next three years, but the need for goods and services with successful marketing strategies to attract visitors is not unreasonable. We propose to introduce Corporate Tourists Social Network (CTSN) service which will not only provide the corporate customers an opportunity to attend the corporate events in a more elegant manner, but it will also enhance their social network by improving their interactions with each other and creating a linkage among them through an online database. We have high expectations from our proposal because it will attract corporate people by fulfilling their needs. Meanwhile, it will also improve the tourism industry and investment opportunities in Australia.

Gold Coast City Australia Tourism Report

Introduction

Australian Tourism Industry has been facing many challenges for the last two years because of the global financial crisis. This project sets out the Australian Tourism strategies and launches a new tourism company. The topic area of this project is to research the Australian tourism industry. Then after finding the gap in this service industry, a new service and marketing campaign will be proposed. The strategy would be based on taking input from Australian Tourism statistics. The time frame of this project is one year that is for the year 2009/10. The organization we have selected is an online corporate tourism operating agency, and the new services that have been introduced are Corporate Tourists Social Network (CTSN) service. Gold Coast City is the selected tourism destination for this project.  The concept of the new service is based on the growing corporate event industry in Australia, and our service will capitalize on this opportunity. CTSN targets corporate entities and registers them on its website. Through this online platform, the corporate people will establish their contracts by building networks and get more corporate activities in Australia rather than just attending events and meetings.

Environmental Scan

The tourism industry of Australia has always appeared as one of the booming sectors of the state. It is not only an employment-intensive industry, but it is also an import component of regional economies, thereby enhancing its significance. Although the government gives a great focus on this industry by making annual investments still, this industry lacks innovation as compared to other sectors of Australia. Even the lack of accommodations is posing threats to the Australian tourism industry.

The recent Australian International Tourism Snapshot (2009) has shown that the Australian tourism industry has faced a decline of 2%. There are two documented reasons first; the appreciation of the Australian dollar in early to mid-2008 that reduced the purchasing power of international visitors, second, the impact of Global Financial Crisis that got severe in late 2008. The corporate and business travel visits have caused this decline; however, the travel to visit friends and relatives has increased. A significant chunk of the tourists used to come from Japan and New Zealand while the holiday trips of New Zealand have declined. The Australian Government is continuing its commitment to the tourism industry.

 

The Organization

Our focus is on Gold Coast City; therefore, let’s have a look at SWOT, Competitor, and PEST analysis of Gold Coast City.

SWOT Analysis :The SWOT analysis (Figure 1) has been drawn after getting an analysis. The SWOT analysis highlights the strengths and weaknesses of the organization and draws a picture of the internal environment, while Opportunities and Threats identify the external environment. Based on SWOT, it is clear that the market for corporate tourists is booming because of corporate events.

Competitor Analysis

Although the services which we have introduced are entirely new and there is no direct competitor, however, the other tour operators are offering substitutes thereby, creating competition for our company. The major competitors include Aboriginal cultural tours, Harvey World Travel, Net flights, STA Travel, Bridge and Wickers.

“Marketing should include competitor analysis. Who are your competitors? What consumer needs and expectations you aim to satisfy .. Therefore, we also carried out the study of the competitors, and we found that all our competitors focus mainly on marketing campaign” pricing aspects.

Peste Analysis

Political/legal: Political and legal system is well controlled with the federal division of power. This stability always gives positive signs to investors.

Economic: The economic analysis shows the rapid growth in the state, the increasing number of immigrants, and aging problems such as birth rate fluctuations while different sectors of the economy are showing rapid growth.

Socio-cultural: Time is running out of poverty and employment opportunities have declined while living standards have improved. In addition, the culture of work has changed too.

Technological: Although technology development is required, however, infrastructure is still developing currently such as recent airport redevelopment, and its capacity has increased.

Ecological: Ecological problems are rising because of the increasing population; however, the green business focus is creating awareness. (Figure 2 Appendix)

Primary Research 

It includes the data which is achieved by conducting a survey, questionnaires, interviews, etc. The questionnaire (Figure 3 Appendix) has 12 questions, and their details are as follows: 

  Question 1 to 4: Demographics to get idea about the information provides

Question 5 to 8: Closed questions

Question 9 to 12: Likert scale

Question 13 and 14: Open questions

Organization and Product Concept

New Idea 

The new tourism service that would be offered is:

“Corporate Tourists Social Network (CTSN)”

Corporate Tourists Social Network (CTSN) is the service through which the corporate tourists will be given an organized platform, where they will be able to interact more with the international corporate people as compared to their previous tours. It will support the marketing campaign of the “Australian Tourism Authority,” a government-owned organization; however, being a profit-for service, it will be introduced as a separate tour operator in Gold Coast.

Service Layout 

Step 1: When an individual will plan a corporate tour in Gold Coast Australia, they will get the option of “Corporate Tourists Social Network (CTSN) Service.”

Step 2: If the traveler opts for CTSN service, then he/she will be given a username and password to login on the “Corporate Tourists Social Network (CTSN) website.”

Step 3: When the traveler will enter into the website, he will get access to the “database of corporate travelers.”

Step 4: He/she may check the names and other information of all the corporate travelers who will travel to the Gold Coast and other Australian destinations.

Step 5: The access to this database will be provided throughout their tour, and if a traveler X wants to meet traveler Y, he can post him the message on the database.

Fulfillment Of Consumer Wants and Needs 

After getting registered on this Corporate Tourists Social Network (CTSN), the corporate travelers may not only get information about the other corporate travelers visiting the destination, but they will also be able to contact them and expand their network. This will surely fulfill the curse of corporate workers to expand their network. This network will also provide information to the registered corporate traveler about the particular events which other corporate travelers are attending.

How Corporate Tourists Social Network (CTSN) IS Unique? 

The introduction of Corporate Tourists Social Network (CTSN) is unique because,

  • It will offer an organized platform to the corporate employees, executives, and leaders to know each other.
  • It will make them familiar with corporate events and meetings that are more likely to attend by famous corporate personalities.
  • Corporate Tourists Social Network (CTSN) is also unique because such a program has never been offered in the history or presently.

Segmentation and Target Market Positioning

Market Segmentation

The variables which are usually selected for market segmentation include geographical variables, demographical variables, psychographic variables, behavioral variables, and technographic market segmentation variables. The variables that we have chosen for segmenting the international tourism market for Gold Coast Tourism industry are ‘Geographical,’ ‘Psychographic,’ ‘Behavioral’ and ‘Demographic.’

Geographical

Domestic Tourism Industry

Source: Business Golden Coast City Council

International Market Segments

Intentional Market Segments

Psychographic

From the Psychographic variables of segmentation, we have taken the two most important factors, which are the ‘social class’ and ‘lifestyle’ factors.

The ‘social class’ will draw a clear boundary between the ones who have the purchasing power of getting the service of Corporate Tourists Social Network (CTSN) and the ones who don’t. Secondly, the lifestyle factor variable will separate the market segment as leisure and business class travelers and others. 

Behavioral

From the Behavioral variables of segmentation, we have chosen ‘benefits sought.’ ‘Benefits sought,’ as a market segmentation variable, will determine why a particular person would like to purchase Corporate Tourists Social Network (CTSN). 

Demographic

From the Demographic variables of segmentation, we have taken ‘occupation’ as the significant variable, and it will group the travelers into corporate people, business travelers, and other people. 

Major Segments In The Market

All major segments, on the basis of the above mentioned variables, the market segments are shown in the table given below.

Market Segmentation Table

Market Segmentation Table

Target Marketing

Objective – A Standard for Evaluation

Our objective is to increase the International tourists in the state, therefore, we will target the International travelers; having high to medium social life; prefer leisure or first class travel because of their life styles; looking for networking, fun and traveling for attending events or meetings; and belong to the group of corporate people.

Selected Market Segments

Selected Market Segments

Corporate Tourists Social Network (CTSN) Positioning Statement

Since the positioning statement tells what you want to communicate with your customers, for the development of the positioning statement of this new service, we have considered four three aspects, including customer, benefits, and USP. By combining these factors, the positioning statements of Corporate Tourists Social Network (CTSN) is as follows:

CTSN exclusively offers the corporate travelers, opportunities to grow their social network by bringing global corporate workers at one platform in Gold Coast City.”

Positioning Map

The positioning map in the appendix (Figure 4) shows that Corporate Tourists Social Network (CTSN) is unique from its competitors because it will charge a high cost. Still, it will provide high social network opportunities to the corporate people. We have randomly selected the few top tour operators in Australia, which are providing travel packages as well as aimed to promote the Australian Tourism industry.

The positioning map clearly shows that Corporate Tourists Social Network (CTSN) is distinguishable from its competitors by providing attractive opportunities to the corporate people.

Marketing Goal 

For Corporate Tourists Social Network (CTSN), the overarching goal is to boost the tourism industry of Gold Coast City by capitalizing on the opportunity of increasing corporate events in the region.

This goal has been selected because the primary aim of introducing this new service is to flourish the tourism industry of the Gold Coast, and it is only possible if the tourists are attracted to the city. Increasing the tourists’ attractions such as nightlife, places, and historical places have become traditional marketing campaigns, and there is a need to introduce a unique idea. Our proposal of Corporate Tourists Social Network (CTSN) with the overarching marketing goal of increasing tourism will work because it will not only attract the tourists in the city, but it will also bring new investment opportunities for the town.

Marketing Mix

Product 

Soriano described the term “product” or “service” refers to a tangible or physical thing or intangible or non-physical thing offered by the company. The products and services are provided for satisfying the needs of the customers. Richard Sandhusen explained the two levels of the product, including actual and augmented product.

Corporate Tourists Social Network (CTSN) can also be categorized in these two levels.

  1. Actual Product: Traveling Package
  2. Augmented Product: Leisure, high quality, luxurious comfort, social networking, and corporate atmosphere.

In addition to Corporate Tourists Social Network (CTSN) service, the other service support features would be the traveling packages such as stay at corporate accommodations, traveling in first-class, etc. Corporate Tourists Social Network (CTSN) will appear as a separate branded service.   The example of the database that will be accessible by the registered corporate people is as follows:

Database Example

Database Example

Price

Price the only element of the marketing mix, which brings revenues for the companies. Before determining the pricing strategy for the products and services, the companies have to consider their costs first. According to Botha, Strydom & Brink, the marketers (2005), has to consider the price sensitivity of the customers first because the price-demand concept of demand and supply curve shows that by the increasing price, the demand decreases for the common goods. There are different pricing strategies that companies can follow. The companies which want to earn long term profit by sacrificing the short term profit usually go for price penetration strategies. In contrast, the companies who wish to make short term profits go for price skimming strategy such as technology companies. Two other strategies include premium price and cost-plus strategies.

In the case of Corporate Tourists Social Network (CTSN), customers are not sensitive to price because it’s a luxurious service. The company will focus on premium price strategy. Since our customers do not price sensitive, therefore; our demand would not decrease by charging high prices for the service.

Demand Curve for Corporate Tourists Social Network (CTSN)

Demand Curve for Corporate Tourists Social Network (CTSN)

Distribution (Place)

The third component of the marketing mix “place” refers to how the company will distribute its products and services. There are three distribution strategies that a company can use to develop the marketing mix of its product or service. The first strategy is the intensive strategy, which focuses on low price or impulse buying. The second is the exclusive distribution that focuses on high prices and exclusive outlets. The third distribution strategy is selective distribution in which few outlets are selected.

 Corporate Tourists Social Network (CTSN) is the service that does not need the physical outlet because of the nature of the service. Therefore, the distribution strategy will be selective. We are not recommending the exclusive process because we will affiliate our service with other traveling websites to increase its reach. Moreover, our service will also be available on the government-owned website of Australian tourism so that we can achieve the government support in providing our service across the international borders more reliably. The online distribution network will provide benefits such as geographical flexibility, low-cost benefit, innovative promotional campaigns, etc. 

Distribution System

Promotion Decisions

Advertising: The banner ads on the internet would be given, and the website will be linked as an affiliated website. Ads in newspapers will also be published.

Personal Selling: As an initial campaign, the few corporate agents will be hired who would give presentations in different companies across Australia so that through direct communication, the feedback of the corporate people would be known.

Sales Promotions: For the sales promotion, a campaign will be conducted, according to which the corporate people who will get two times registration on Corporate Tourists Social Network (CTSN) whenever they visit Australian will get third registration free.

Sponsorship: Corporate events and international business meetings would be sponsored frequently.

People/Physical Evidences/Internet

The degree of intensity of customers that people show while consuming the service is considered as the level of involvement. In the service sector, the level of participation is high because the customer has to get help after passing through the complete service layout and experience. For satisfying the customer, good staff hiring is required, and for our company, our staff will provide online immediate helpline service. Our quick response and “aim to achieve full customer satisfaction” will make us distinguishable from the customers.

Since we will provide only online services; therefore, the color of the website and its design will be selected in consideration to professional look. The head office of the company will be the only physical outlet, and its atmosphere would be kept open. For ensuring the full functionality of the website, web hosting, and search optimization services would be taken.

Recommendations

After this analysis, we have proposed a recommendation for the next year. Our new service aims to increase tourism in Gold Coast City by corporate events. However, we suggest that it is essential to integrate environmental planning with tourism strategies and planning. In other words, once the country’s tourism industry starts flourishing, and then we would give focus on increasing tourism through natural attractions, wildlife, theme parks, beach ways, and other nature-based projects.

References;
  • Bailey, Hon, F.  (2008). Tourism budget facts. Department of Industry Tourism and Resources. URL http://www.tourism.australia.com/content/News%20Centre/media_releases_2007/tourism_budget_facts_2007_08%20.pdf
  •  BMG Learning. URL http://learning.bmj.com/learning/channels/gp/peerreview.html
  • Botha, Johan  & Strydom, Johan &  Brink, Annekie. (2005). Introduction to Marketing. Juta and Company Limited
  • Denholm, Matthew. Lack of hotels a threat to tourism. URL http://www.theaustralian.news.com.au/story/0,25197,25964187-5006788,00.html
  • Hiebing Roman G. R., & Scott, W. C. (2003). The successful marketing plan: a disciplined and comprehensive approach. McGraw-Hill Professional Retrieved from NetLibrary database.
  • International Tourism Snapshot .(2009). URL http://businessgc.com.au/uploads/international_tourism_snapshot%20yending%20march%2009.pdf
  • McNamara, Carter. (n.d.). Free Management Library. Competitors Analysis. URL http://managementhelp.org/mrktng/cmpetitr/cmpetitr.htm
  • Sandhusen, Richard. (2000). Marketing Barron’s business review series. Barron’s Educational Series. Retrieved from NetLibrary database.
  • Soriano, Claudio. (1990). El marketing mix : concreptos, estrategias y aplicaciones. Ediciones díaz de santos. Retrieved from NetLibrary database.
  • Southern Australian Tourist Plan 2009-2014. (2009). URL http://www.tourism.sa.gov.au/tourism/plan/Tourism%20Plan_Insert_web.pdf
  • Tourism Australia. (2009). URL http://www.indigenoustourism.australia.com/nitpm.asp
  • Tourism Industry In Australia. (2009).  A report prepared for OECD KISA Project. Australian Government. URL http://www.oecd.org/dataoecd/61/33/34609098.pdf
  • Gold Coast City Tourism Strategy. (2009). URL http://www.goldcoast.qld.gov.au/attachment/tourism/ts_part3_10.pdf
  • www.hull.ac.uk/workbasedlearning/documents/PESTLE.doc
  • www.tourism.sa.gov.au/tourism/plan/Tourism%20Plan_Insert_web.pdf

Appendix

Figure 1
 Swot Analysis
Strengths Weaknesses Opportunities Threats
Online existence Lack of corporate linkages Development of new products Lack of proper organization of events
Geographical flexibility and reach Not established brand name Corporate event growing Industry Insurance problems
Low costs high yields Need of niche market development Crime rate increasing
Developed Infrastructure Greater demand of cultural products Absence of proper management, Limited airlines and poor transportation system

 

Figure 2

 Peste Analysis

Political, Economic, Social, Technological/Technical, Legal, Environmental

Political, Economic, Social, Technological/Technical, Legal, Environmental

Source: www.hull.ac.uk/workbasedlearning/documents/PESTLE.doc

Figure 3

Questionnaire

  • Your Name ……
  • Your Age ………….
  • Your Occupation ………….
  • Your Designation …………..
  • Have you even been to Australia (Gold Coast Tourism Industry)?

Yes

No

  • Do you think there is a need of introducing more tourism services?

Yes

No

  • Refer (6), If yes, then List them:

…………….

…………….

…………….

  • Do you have high social nature?

Yes

No

  • Is Social Networking important for you?

——————————————————————————————–

  • Do you think Australian tourism industry is competitive?

Disagree    neutral                Agree        Strongly agree     Strongly disagree

1………………………2………………………3…………………4…………………………5

  • What are the problems which you have faced during your trip?

……………………………………………………………………………………………………………………………………………………………………………………………………

  • What would you say about the steps which can be taken to improve Gold Coast Tourism Industry?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………….

Figure 3

 Positioning Map

High Social Networking

Figure 3 

Peer Review Form

 

Name

Date

Base Jones’s current role How long have you known
Jones in this role?
(fill in as many as apply)
In this working  relationship are you: 

  1. A colleague (at approximately similar level to Jones or senior to him?)
  2. Reporting to Dr Jones or working with him in a less senior role?
  3. A peer?

 

What do you particularly value about Jones’s contribution at work? If possible, please give an example of a positive experience of working with Jones. 
a) As a Manager
b) As a Colleague
c) As a Subordinate
What things would you most like to change about Jones’s working practices?  If possible, please give an example of a difficult experience.

Do you have any other comments that would help Jones’s personal or professional development?

 

Source: BMG Learning. URL http://learning.bmj.com/learning/channels/gp/peerreview.html

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