a division of Fastrak Solutions Pty Ltd Fastrak Asian Solutions ABN: Asia, China and The Year of the Dragon Event:Tourism Industry Council of Tasmania Conference Location:Launceston, Tasmania Presented By: Richard Beere, Fastrak Asian Solutions Date:Tuesday, 17 th July 2012

Fastrak Asian Solutions ATEC - The Tourism Export Peak Industry Body 2 Tuesday, 17 th July 2012 The Australian Tourism Export Council was formed in 1972 and is the peak industry body representing the tourism export industry. On behalf of it’s 1000 members, they work closely with federal and state government and other industry bodies such as Tourism Australia. ATEC membership is a strong endorsement of professionalism, credibility and international market knowledge amongst the tourism export industry. Their national office and nine branches Australia-wide are committed to promoting industry growth at a grassroots level in order to maximise their members’ success.

Fastrak Asian Solutions Inbound Will Lead Growth 3 Tuesday, 17 th July 2012

Fastrak Asian Solutions The Inbound Opportunity International visitors currently spend $25 billion in Australia DID YOU KNOW ? ? Tuesday, 17 th July

Fastrak Asian Solutions Why Consider Inbound? Incremental business to supplement existing domestic business High desire and intention to visit Australia – conversion is the issue International visitors are not focused on weekends or holiday periods – opportunity to grow midweek business The inbound market growth forecasts are good Outbound travel from Australia has been strong (7.8m in 2011) Domestic market is in decline or flat YOUR MAJOR MARKET! Tuesday, 17 th July

Fastrak Asian Solutions Do you have a business plan? Have you tested your product on the domestic market? Have you done any market research? RTO/ STO / TA What markets will you focus on? Is your product adjustable for different markets? Have you completed a SWOT analysis? Build on your strengths, reduce your weaknesses, manage your threats, and maximise your opportunities. Export Ready Criteria Tuesday, 17 th July

Fastrak Asian Solutions Traditional Distribution Channels PRODUCT RETAILER ITO WHOLESALER CUSTOMER Tuesday, 17 th July

Fastrak Asian Solutions Current Distribution Channels PRODUCT ONLINE RETAILER ONLINE WHOLESALER CUSTOMER DISTRIBUTOR / CHANNEL MANAGER TRADITIONAL WHOLESALER TRADITIONAL RETAILER Tuesday, 17 th July

Fastrak Asian Solutions Quality products and services Reliability / schedule – tours / transport Efficient turnarounds on reservations / confirmations Accept vouchers & train your staff Validity periods (01 April to 31 March) Commission structure for all distribution levels To Work With an ITO You Need: Complimentary (FOC) policy, credit terms and cancellation policy Market suitability (you may not be suited to all) Sales Collateral – brochures, image CD’s, websites (include user reviews, update your look and feel) Regional products / itineraries (expand your distribution) 9 Tuesday, 17 th July 2012

Fastrak Asian Solutions 100 $100:$10, Commission paid:$ 1, Average Commission: 10 % COMMISSIONS Are a Reality Retail Cost $100 per room Accommodation Revenue & Commission Nett RevenueComm. Paid Direct 40 $100$4000nil 10% Retailer 30 $90$ % Wholesaler 20 $80$ % Inbound 10 $70$ Total$9,000$1,000 THE REAL COST OF COMMISSION! 10 Tuesday, 17 th July 2012

Fastrak Asian Solutions When Is a Product Considered “Export Ready”? ATEC membership – guarantee of standards assurance Rate structure & accounting system to comply with ITOs requirements Understanding the needs of the international markets (i.e. Special events & year-round business) & specific requirements (i.e. EEC consumer laws) Consistency in quality & service Tuesday, 17 th July

Fastrak Asian Solutions 12 Now More Than Ever... Tuesday, 17 th July 2012

Fastrak Asian Solutions Fastrak’s East - India to Japan 13 Tuesday, 17 th July 2012

Fastrak Asian Solutions Movements in the Top 10 Inbound Past Two Decades 14 Tuesday, 17 th July % JAP21 NZ19 UK12 USA11 SIN4 HKG3 GER3 MLY2 CAN2 INS2 % JAP20 NZ14 UK10 USA8 SIN5 KOR4 TAI4 HKG4 INS4 GER3 % NZ16 JAP14 UK12 USA9 SIN6 HKG3 KOR3 MLY3 GER3 CHN3 % NZ19 UK13 JAP12 USA8 CHN6 SIN5 KOR4 MLY3 HKG3 GER3 % NZ19 UK11 CHN8 USA8 JAP6 SIN5 MLY4 KOR4 IND3 HKG3

Fastrak Asian Solutions The East Will Provide The Business Fastest growth for arrivals AND spend Long term sustainable growth due to populations and economies Fast and large growing middle classes Travel becoming a normal part of life Governments encouraging travel 15 Tuesday, 17 th July 2012

Fastrak Asian Solutions But It Is Complex And Multi-Level Multiple markets Multiple segments Multiple traveller levels of maturity Multiple channel distribution networks 16 Tuesday, 17 th July 2012

Fastrak Asian Solutions And … Changing Daily!! Rapidly changing demographics Rapidly changing consumer behaviour and needs Rapidly increasing competition High and changing regulation 17 Tuesday, 17 th July 2012

Fastrak Asian Solutions China and Greater China A whole new paradigm A whole new way of thinking A whole new meaning to “mass” 18 Tuesday, 17 th July 2012

Fastrak Asian Solutions Understanding is Critical The thinking The consumers’ requirements The markets and the cities The distribution system 19 Tuesday, 17 th July 2012

Fastrak Asian Solutions Beere’s Belief # 1 The Asian psyche will always be The Asian psyche (And the driver of action and reaction) 20 Tuesday, 17 th July 2012

Fastrak Asian Solutions Beere’s Belief # 2 Consumers are becoming MODERN NOT WESTERN 21 Tuesday, 17 th July 2012

Fastrak Asian Solutions Beere’s Belief # 3 A dual speed travel market exists 22 Tuesday, 17 th July 2012

Fastrak Asian Solutions “The New Traveller” Group Travel Leads the Way 23 Tuesday, 17 th July 2012

Fastrak Asian Solutions “The New Consumer” Flexibility and Choice Increasing 24 Tuesday, 17 th July 2012

Fastrak Asian Solutions Traveller Maturity Stages Look and see ↓ Touch and Feel ↓ Engaged ↓ Involved ↓ Immersed 25 Tuesday, 17 th July 2012

Fastrak Asian Solutions Beere’s Belief # 4 Specialisation Not Generalisation 26 Tuesday, 17 th July 2012

Fastrak Asian Solutions Focus is Critical Where is the best potential for you? Who are the best customers for you? What do they do/want/watch/read ? How do you exceed their expectations? 27 Tuesday, 17 th July 2012

Fastrak Asian Solutions Group Travel Options – Fully / Partially / Skeleton Packaged – Technical Visits – Special Interest – School Excursion and Short Term Language – Incentives – Customised 28 Tuesday, 17 th July 2012

Fastrak Asian Solutions Distribution Channel Options 29 Tuesday, 17 th July 2012

Fastrak Asian Solutions Distribution Channels In a number of markets small retailers provide the majority of bookings. All sell Some promote and sell. Others package, promote, and sell. You need to know who is who for what! 30 Tuesday, 17 th July 2012

Fastrak Asian Solutions Beere’s Belief # 5 Digital for Promoting BUT Travel Agents for Booking 31 Tuesday, 17 th July 2012

Fastrak Asian Solutions Products Must be “do-able” for the customer Link with other products Delivery must be “Asian friendly” Delivery must be adjusted for each market The customer needs “assistance” 32 Tuesday, 17 th July 2012

Fastrak Asian Solutions Beere’s Belief # 6 Adjust the Delivery BEFORE Adjusting the Product 33 Tuesday, 17 th July 2012

Fastrak Asian Solutions So What Are The Barriers? Language Cultural understanding Ability to know product requirements Ability to bundle products Access to the travel trade Access to the customer 34 Tuesday, 17 th July 2012

Fastrak Asian Solutions What’s Needed To Win? A long term commitment Strong focus and targeting Depth of penetration Build travel agent confidence Work with other products to package and bundle Work with other partners to gain leverage Tailor the product delivery for the customer 35 Tuesday, 17 th July 2012

Fastrak Asian Solutions Beere’s Belief # 7 “ MAKING IT EASY” is the Key to Success 36 Tuesday, 17 th July 2012

Fastrak Asian Solutions And Remember … 37 Even the deepest pool Stagnates without action Buddha Tuesday, 17 th July 2012

Fastrak Asian Solutions Thank You 38 Domo Arigato Gozaimasu Kamsa Hap Nida Xie Terima Kasih Khob Khun Kha Shukriya Tuesday, 17 th July 2012

Fastrak Asian Solutions For More on How to Win in Asia … Contact: Fastrak Asian Solutions Phone: +61 (0) Tuesday, 17 th July 2012