Australians embrace travel despite economic pressures: Nielsen report reveals top trends

Australians embrace travel despite economic pressures: Nielsen report reveals top trends

A recent report by Nielsen Consumer & Media View (CMV) paints a positive picture of the Australian travel industry, indicating a strong consumer appetite for travel despite economic concerns.

The report highlights a significant interest in travel among Australians, with 76% planning domestic getaways and over half (52%) eyeing international destinations within the next year. Younger demographics are particularly enthusiastic, with 78% of those aged 25-39 planning local trips and 58% of 18-24 year olds looking to venture abroad.

For domestic travel, Sydney emerges as the most popular destination, narrowly edging out Melbourne. The Gold Coast, Regional NSW, and Brisbane round out the top five preferred locations for local getaways.

The UK takes the top spot for desired overseas destinations, followed by New Zealand, Japan, the USA, and Indonesia. While beach escapes are a draw for domestic travel, sightseeing becomes a higher priority for international trips, often followed by relaxation.

Nielsen Digital Content Ratings (DCR) data reveals Qantas as the most visited travel website in Australia during Q1 2024, followed by Trip Advisor and Booking Holdings Network. Notably, average user engagement time across travel platforms remained consistent from the previous quarter, with and Royal Caribbean Cruises leading the pack in user engagement time.

The number of Australians enrolled in frequent flyer programs continues to rise, with 57% of consumers now participating in some kind of travel rewards scheme. Qantas remains the dominant player with a 45% market share, followed by Virgin Australia (31%) and other smaller programs.

Nielsen Ad Intel data indicates a robust travel and tourism advertising sector, with spending exceeding $153 million in Q1 2024. This represents an 8% increase compared to the prior quarter. TripADeal emerged as the biggest advertiser, followed by Virgin Australia and Ignite Travel (owned by Flight Centre).

Nielsen Ad Intel's Australian Commercial Lead, Rose Lopreiato, highlights the travel industry's resilience despite economic pressures, evidenced by the advertising spend increase. She emphasizes the value of competitive ad spend analysis and understanding consumer behavior to maximize return on investment and build brand loyalty.

Glenn Channel, Nielsen's Pacific Head of Advanced Analytics, underscores the importance of data-driven insights for travel brands. He emphasizes moving beyond demographics and understanding travelers as unique groups with distinct motivations. Nielsen CMV's audience segmentation tools provide a holistic picture of travel preferences and purchase triggers, offering valuable insights for brands.

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