Expedia Group spotlights the impact of the ‘tour tourism’ explosion in Australia

Expedia Group’s Michael Dykes has spotlighted the impact on the travel industry with the explosion of ‘tour tourism’. As, VP Market Management APAC, Expedia Group, Dykes has noted that Taylor Swift's groundbreaking Eras Tour has proven to be "nothing short of a ‘Love Story’ for the tourism industry, bringing billions of dollars to economies around the world".

Dykes shares “now it's Australia's turn, with a sold-out run of shows in Sydney and Melbourne over two weekends this month marking the official arrival of the ‘tour tourism’ travel trend Down Under.

“We actually predicted that ‘gig getaways’ – the idea that concertgoers are increasingly willing to travel for their favourite musical artists – would soon be massive in our Unpack ‘24 Report, released late last year.

“Specifically, the report uncovered that 60% of Australian respondents were willing to travel outside their hometown for a concert, while 40% viewed gigs as an opportunity to explore new destinations.”

It's predicted that Taylor Swift's seven concert performances will inject more than $140 million into the local economy and looking at recent Expedia Group search data at the time of the tour’s ticket sales, Dykes highlights how this will impact the Australian tour tourism market.

“With the Eras Tour only hitting two of the nation's capital cities, it’s little surprise that there was a surge in domestic travel. What was a surprise though, was the spike in which it came.

“Brisbane took out the top spot for Sydney and Melbourne with an increase of 890% and 860% respectively – both nearly nine times higher than the same travel period in 2023. Both destinations also saw a rise in searches from travellers from Perth (600% and 780%) and Adelaide (515% and 620%).

“Even locals in each city have chosen to make a weekend of the gig by looking to book an overnight stay (95% and 235% respectively) following the three-hour long show.”

Dykes also shared that it’s not just domestic travellers who are chasing their “Wildest Dreams” for the Australian leg of the tour and points out that “a huge surge of international Swifties will also be travelling to Australia, with many fans who missed out on getting tickets in their home countries making the trek.

Dykes adds “New Zealand dominated the inbound market with a whopping 835% increase in searches for Melbourne and 1265% increase for Sydney – that’s over 13 times more than the same period last year.

“Australia’s Trans-Tasman neighbours weren’t the only market that saw an increase though, with travellers from as far as the United States, Canada and Great Britain also embracing the tour tourism trend with massive spikes in searches to both capital cities”

Dykes spotlights how hoteliers can get in on the action during an unprecedented and highly competitive period.

“With the tour creating a massive influx of travellers to Australia’s largest capital cities, it’s more important than ever for accommodation providers to do everything they can to effectively capture demand. And one of the best ways of doing this is by targeting high value travellers.

“These are the people that travel more often, spend more money and stay longer than your typical jetsetter – meaning they’re a valuable group to attract. That’s why simply understanding the type of traveller they are and being able to offer them a competitive rate through package promotions and mobile deals is a great place to start.

“Studies show that travel package promotions –which allow guests to bundle their hotel, flights, and car rentals at a discount–are a major means of boosting hotel revenue and attracting high-value guests. The act of offering the convenience of finding everything they need in one place has proven successful for Expedia Group listed properties in the past, with our research showing that the average daily rate for package stays is higher than for standalone stays by an average of 30 per cent .

“It’s not just packages that provide a solution to increasing bookings, though. It’s also about understanding where travellers book. A number of bookings on our brand platforms come from customers using the mobile app, which is why our hotel partners have seen huge benefits from incentivising travellers with mobile-only rates.

“With mobile often the preferred channel for last minute bookings, offering discounted rates to travellers searching on a smartphone means you’re reaching those that are ready to book. Tapping into these on-the-go travellers therefore improves visibility and drives more bookings.

“So, at a time where a competitive edge is needed most, it is essential for hoteliers to be smart with their distribution strategy, and I encourage all to take advantage of this demand and make themselves a standout by understanding who their high-value travellers are and what they want.

“Because with so much competition out there, hoteliers should do all they can to tell travellers ‘You Belong With Me’.”

Image. Credit: Frontier Touring