It’s not all about price!What motivates today’s budget travellers?

Carolyn Childs, Director, Travel & Leisure

2

Price vs. emotion

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Price appears to motivate travel

0

20

40

60

Better valueaccom

Cheaperflights

Cheaperpetrol

Get time offwhen Ineed it

Availabilityof

packages

Packages for families

Events orfestivals

Moreinformationon where to

go

None of theabove

% o

f A

us

tra

lian

po

pu

lati

on

What would encourage you to take a short break in Australia?

© TNS Feb 2009

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But different needs exist

What would encourage short breaks: (%)

C02Q4 encourage you to take a short break

BASE: Total Sample: (n=1025)

Source: TNS Omnibus: February 2009

Cheaper Flights52%

Events/Festivals17%

Ability to get time off36%

Packages for families34%

Availability of packages 34%

Availability of packages 34%

16-34 year olds

Families

White collar professionals

50-64 year olds

White collar couples

5

Consumer response is not generic

SHIT!OHI’m not convinced by

all the media doom and gloom…

They need to do something about it …

This means we are going to have to

tighten out belts… This is a great opportunity…

Things will work out…

Everyone should take responsibility for their own

situation…

6

Who to communicate to about price

Challengers – 14%

Analysts – 26%Worriers – 17%

Protectors – 22%

Escapists – 12% Fighters – 9%

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Leveraging emotion

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What do consumers desire?

honesty and realness

local

slowing down / taking stock

empowerment

connectionreduced choice and

simplicity

Stability &

Security

authenticity of experiences

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Consumers are seeking security through their life choices…

Identity

Needing to have our roles redefined:

Simplicity

As life speeds up and becomes complicated, we yearn for the simplicity,

warmth and certainty of days gone by:

Moving from a desire quantity to the quality of

experiences

Quality

Honesty

Transparency

Innocence

Genuine

Of time

Connection

Family

Meaningful

Belonging

Sharing

Gender roles

Skills

Traditional

Rules

Certainty

Children

Patriotism / nationalism

10

Barriers

Spare time Financial pressures

11

The impact of consumer confidence

Westpac/Melbourne Institute: Consumer Confidence Index

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Case studies

Apple

Nike

Adidas

HeinekenVespa

wii

Ikea

Google

MicrosoftSony

Nokia

Google

VirginCoca-Cola

Canon

Motorola

Samsung

Starbucks

Cadbury

Pepsi

Visa

McDonald’s 7-Eleven

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Case studies Using price to build sustainable advantage

Carnival CruisesSTA’s £10 Pom

14

Building sustainable advantage

Reward the loyal

Buy Australian

Promote escape

Make price promotion fun (but limited)

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If you make it about price it always will be

There’s always someone with deeper pockets

Brands that make emotional connection survive

Other categories leverage emotion well

Can we do it too?

Closing thoughts

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Yes we can!