Tourism industry in Australia

Tourism industry in Australia

Table of contents

1.0 Introduction 3

2.0 Current business operations 6

2.1 Products 6

2.2 Pricing models 7

2.3 Customer segment 8

2.4 Branding and positioning 9

2.5 Promotion and marketing 10

3.0 Future campaign 11

4.0 Innovative idea in marketing 11

References 12

1.0 Introduction

This business portfolio aims at exploring the tourism industry in the Australia. Tourism is one of the most important component of economy in Australia contributing over A$40 billion annually. Furthermore, tourism is a source of employment across various sectors and also contribute to about 5% of the total export earnings (Michael, 2002 p. 118). Some of the most popular tourist destinations in Australia include the three major coast cities that is Brisbane, Melbourne and Sydney. Other prominent destinations are also found in Gold Coast, Uluru, Great Barrier Reef, Queensland and Tasmanian wilderness among others. There are over 500 national parks in Australia, each having distinct features such as variety of flora and fauna, spectacular rock and reefs, beaches and beautiful landscape scenery. Interestingly, domestic tourist is the dominant source of income compared to international visitors (Fig. 1).

Figure 1: Australian share of tourism (Source: ABS, 2011)

Kakadu National Park (Fig. 2) is one of the major the major tourist destinations located in the northern territory owned by aboriginal people. The spectacular features found here include Jim Jim and Twin falls, Kangaroos, crocodiles, rare plants and animals in the rainforest, higher bird population and various fish species. However, the fascinating rock art that is thought to be painted over the past 20 millennials in Ubirr and Nourlangie depict the history of aboriginal people.

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Figure 2: Kakadudu National Park (Source Wikitravel, 2017)

Many tourists also visit Uluru-Kata Tjuta National Park (Fig. 3) due to enormous rocks consisting of 32 rock domes. It is named due two major rocks namely the Kata Tjuta and Uluru (Ayers Rock). Within these parks there are wide variety of animals and plants.

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Figure 3: Uluru-Kata Tjuta National Park (Source: Australian Sky, 2018)

Port Campbell National Park (Fig. 4) is best destination characterized by oceanic and rock formations. The waves from the ocean led to formation of limestone rock formations in the park. The Great Ocean Road, the three historic sites namely Grotto, Lord Ard Gorge and London Arch forms beautiful scenery for the visitors. Furthermore, the giant limestone structures forming the Twelve Apostles, orchids and wildlife draws millions of visitors to the park annually.


Figure 4: Port Campbell National Park (Australian Sky, 2018)

Lastly, Nambung National Park is also another destination combining ocean and rock formations. These rock rise near the ocean and in the surrounding Pinnacles desert area thus the limestone formations are known as pinnacles. Furthermore, the park is rich in biodiversity having over 150 species of animals and birds. One can easily see the dingoes, whales and red or grey kangaroos when walking along the beach.

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2.0 Current business operations

2.1 Products

There are numerous tourism products in Australia attributed to the named parks above. The biodiversity particularly wildlife, plant species and numerous physical features like rock formations that the major tourist attraction in Australia (Higham and Bejder, 2008 p. 77). There are also numerous opportunities accrued to local that is associated with the tourism sector such as hotels and accommodation and the transport system. The prominent Sydney Opera House (Fig. 5) attracts tourists to Australia. The major products are transport, accommodation and attractive touring products.

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Figure 5: Sydney Opera House

Location and distribution

This element is meant to bring the travelers and the tourism service providers together. There is widest distribution of attraction sites, transport and communication channels as well as accommodation services. Since tourism is a service industry, the most common distribution channels is the use of travel agents and tour operators (Kao et al., 2008 p. 21).


Figure 6: Distribution channels (Source: Slide Share)

2.2 Pricing models

The pricing strategy for the tourism industry in Australia is highly diverse due to difference in locations of attraction sites and nature of the travelers. However, the prices are more market based since companies compare price within the market for similar services by the competitors. The charges for certain tourist destinations like national parks are constant for domestic and international tourists. However, the accommodation operators tend to change pricing based on seasons of the year and demands (Zhang, Song and Huang, 2009 p. 345). Package deals, commission and discounts are also common among travel agents and tour operators.

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Figure 7: Source: Slide share

2.3 Customer segment

Very often the customer segment in tourism industry is based on the following components: age, socioeconomic status, geography and the type of travel (Ryu, Han and Kim, 2008 p. 463). However, each player in tourism industry has to identify its customers and learn about them in order to meet their needs. Thus geographic, demographic, sociocultural and psychographic segmentation can be adopted for segmenting customers in tourism industry.

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Figure 8: Customer segmentation (source: Tourism School, 2017)

2.4 Branding and positioning

Brand positioning also known as brand strategy refers to positioning the organizational brand in the minds of the customers (Park et al., 2007 p. 404). There are numerous strategies for owning a market niche for services offered including pricing and promotions. To create unique brand in tourism industry, the companies are using value based positioning ideas and the brand positioning statements that help differentiating from the competitors (Fig. 9, Ju, 2016).


Figure 9: Brand positioning (source: Ju, 2016)

2.5 Promotion and marketing

The tourism industry targets sale of places and other services offered by the support industries. Australia is competing with other countries to promote its destinations therefore it has to engage in intense marketing to create interests on broad scale to attract tourists. Various organizations in tourism industry are using advertising to get attention of the customers. The national parks and companies offering transport and accommodation are using ads, magazines and television to advertise their products.


Figure 10: advisement ad (Source: Travel techie, 2017)

3.0 Future campaign

There are numerous marketing campaigns that can be integrated together to achieve effective marketing. To promote local tourism traditional visual media like Television and radios will be used together with websites, blogs and email marketing. Furthermore, trade shows will be conducted by partnering with various stakeholders in transport, communication and hotels to sell various destinations. Evers and Knight (2008 p. 545) argued that trade shows are effective in that it draws media, public and travel agencies together thus help draw their customers.

4.0 Innovative idea in marketing

There is increased number of people using social network due to decreased cost of smartphones. The use of various social network platforms such as Facebook, Twitter, LinkedIn, Instagram and Snapchat helps in attracting the adventurous youths. Stelzner (2014 p. 21) reported that social media marketing is a powerful tool for business to reach customers as it is fast and cost effective.


ABS, 2011. Australian Tourism Industry. Retrieved on June 5, 2018 from

Australian Sky, 2018. Uluru-Kata Tjuta National Park. Retrieved on June 5, 2018 from

Evers, N. and Knight, J., 2008. Role of international trade shows in small firm internationalization: a network perspective. International Marketing Review25(5), pp.544-562.

Higham, J.E. and Bejder, L., 2008. Managing wildlife-based tourism: Edging slowly towards sustainability?. Current issues in tourism11(1), pp.75-83.

Ju, Z, 2016. Why Brand Management Is Even More Important in a Slowing China. Retrieved on June 5, 2018 from

Kao, M.C., Patterson, I., Scott, N. and Li, C.K., 2008. Motivations and satisfactions of Taiwanese tourists who visit Australia: An exploratory study. Journal of Travel & Tourism Marketing24(1), pp.17-33.

Michael, E., 2002. Antiques and tourism in Australia. Tourism Management23(2), pp.117-125.

Parks and Wildlife Service, 2017. Nambung National Park. Retrieved on June 5, 2018 from

Ryu, K., Han, H. and Kim, T.H., 2008. The relationships among overall quick-casual restaurant image, perceived value, customer satisfaction, and behavioral intentions. International Journal of Hospitality Management27(3), pp.459-469.

Stelzner, M., 2014. 2014 Social Media Marketing Industry Report. Social media examiner, pp.1-52.

Tourism School, 2017. Customer segmentation. Retrieved on June 5, 2018

Travel Techie, 2017. Tourism Australia embarks on an integrated marketing campaign. Retrieved on June 5, 2018 from

Wikitravel, 2017. Kakadudu National Park. Retrieved on June 5, 2018 from

Zhang, X., Song, H. and Huang, G.Q., 2009. Tourism supply chain management: A new research agenda. Tourism management30(3), pp.345-358.

Park, J., Rajagopal, P., Dillon, W., Chaiy, S. and DeSarbo, W., 2017. A new bayesian spatial model for brand positioning. Journal of Modelling in Management12(3), pp.404-431.


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