Tourism Business Magazine – Feb Mar 2013
The 2012/2013 season seems to have got off to a better start than expected. During the conference last year operators were ‘pretending’ to be cautiously optimistic. By the December Xmas Symposium the mood had changed to being ‘cautiously’ optimistic and after a round of visiting operators in Queenstown and Rotorua, I’m pleased to report that for many operators, the season is going better than expected with many ‘optimistic’ that the season is better than last year.
One of the questions I have been asking operators is what is your group versus FIT (free independent traveller) percentage? This is answered quickly as a common breakdown statistic operators have being keeping for years. The next question of “what percentage of your FIT business is pure direct versus FIT business coming from an inbound tour operator?” This question caused some pause with some replies ‘not sure’. The reason I asked this is because, as the nature of how your visitors come to you has changed over the last few years with stronger internet, website and social media intelligence, there has been the perception that inbound tour operators are on their way out.
Not so. The traditional distribution channels have certainly had a shake up with a decline in group business and rise in FIT’s, but what some suppliers don’t realise is that inbound operators have changed their business models to accommodate this. Your FIT statistics should demonstrate those who are vouchred by an inbound operator, those who book online via your own website, those who book locally via the i-site or accommodation referral, and those who come to you via an online travel operator.
The short lead in time was another area of discussion. No real surprise there but considering only a few years ago we were talking about 18-24 months brochuring in advance with inbound tour operators, today’s ‘sales environment is quite instant and often geared by airline prices to New Zealand.
By the way, when discussing group business versus FIT, all operators said they prefer coach loads of visitors arriving at a pre determined time rather than not know how many FIT visitors per day ‘could arrive’. Supplier members strongly encourage our inbound operators to “keep getting the group business”. The western markets are our strongest FIT travellers so we need to perhaps look at new group business potentially coming from Eastern Europe (Russia), the UAE and Brazil in coming years.
Although none of the above are on Tourism New Zealand’s top tiers of marketing spend, be assured that the modern inbound tour operator are always thinking of ‘growth and how to make money”. If all decision across the industry – both private and public sectors (particularly policy) were made on this basis, then our economy would be in a better place.
All the best that the remainder of the season produces a better than expected result.