AUSTRALIA TOURISM E-COMMERCE STRATEGIC PLAN

“AUSTRALIA TOURISM E-COMMERCE
STRATEGIC PLAN”
Table of Contents
Introduction…………………………………………………………………………………………………………………………..1
Company Overview ……………………………………………………………………………………………………………….2
Australia Tourism Overview ………………………………………………………………………………………………….4
Background of Chinese Tourist………………………………………………………………………………………………5
Analysis…………………………………………………………………………………………………………………………………6
Political Factor…………………………………………………………………………………………………………………….6
Economic Factor………………………………………………………………………………………………………………….6
Social Factor ……………………………………………………………………………………………………………………….6
Technological Factor ……………………………………………………………………………………………………………6
Environmental Factor …………………………………………………………………………………………………………..7
Legal Factor ………………………………………………………………………………………………………………………..7
SWOT Analysis……………………………………………………………………………………………………………………..8
Internal Analysis………………………………………………………………………………………………………………….8
Tourism Australia Strength……………………………………………………………………………………………8
Tourism Australia Weaknesses…………………………………………………………………………………….10
External Analysis……………………………………………………………………………………………………………….10
Tourism Australia Opportunities………………………………………………………………………………….10
Tourism Australia Threat…………………………………………………………………………………………….10
Strategy……………………………………………………………………………………………………………………………….11
Market Segmentation………………………………………………………………………………………………………….11
Targeting……………………………………………………………………………………………………………………….12
Positioning …………………………………………………………………………………………………………………….13
Value Proposition …………………………………………………………………………………………………………..14
Action Plans…………………………………………………………………………………………………………………………15
Digital Marketing and Social Commerce ………………………………………………………………………………15
Security and Payment Methods ……………………………………………………………………………………………16
Order Fulfillment ……………………………………………………………………………………………………………….17
Mobile Marketing ………………………………………………………………………………………………………………17
Conclusions………………………………………………………………………………………………………………………….18
References……………………………………………………………………………………………………………………………19
Introduction
Tourism involves hundreds of millions of people travelling the world each year. World
Tourism Organisation (WTO) said that the estimated international travelers during 2001
reached 698 million. In the history, traveling is expensive and difficult (Williams, 1998). To
be able to travel you must consider a lot of things: Food Expense, Lodging, Pocket Money etc.
Nowadays, traveling has become cheaper and less complicated in the last 150 years and has
become one of the motivations for travellers to explore the world. Therefore, the number of
tourist is increasing every year. The growth number of tourists also led to competitive rivalry
in the tourism market share.
Tourism Australia acknowledges that to be able to compete in tourism industry, traditional
way would not work as much as expected in this modern globalisation. E-commerce become
more effective, attractive and bond to people in a bat of an eye. Social Media and all Marketing
tools integrate with cutting edge technology enable the Organisation accomplishes its research
and reach its target market easier.
The urge to obtain more tourists come to Australia, specifically tourist from China. Tourism
Australia would analyse its output data, information and performance to measure its favourable
and unfavourable position. Also, structure the new strategy and actions plan to improve its
services and gain more Chinese tourists visit Australia.
Company Overview
Tourism Australia: formed under the Tourism Australia Act 2004 as an Australian
Government Commonwealth Corporate Entity.
Responsibility: Attracting international tourists to visit Australia both for leisure and business
events.
Constitution: Under the Australia Act 2004 and the Public Governance Performance and
Accountability Act 2013.
Tourism Australia Management
Managing Director : John O’Sullivan
Chief Marketing Officer : Susan Coghil
Executive General Manager Event : Penny Lion
(Source: Tourism Australia Corporate, 2019)
Up to date, “Tourism Australia active in 15 key markets and activities include advertising, PR
and Media Program, Trade Shows and Industry Programs, Consumer Promotions, Online
Communication and Consumer Research. The global Marketing Purpose is to invite the world
to experience the Australian way of life”.
• United| One Team
• Positive| Optimistic
• Genuine| Authentic
• Commercial|
Deliver Result
• Innovative| Creative
Thinker
• Maximise
tourism
contribution
to Australia’s
economy
• To grow demand
and foster
competitive and
sustainable
tourism industry
• To be the most
desirable
country and
memorable
destination on
earth Vision Purpose
Goals Value
In 2018-2019, Tourism Australia will continue to be
champion Tourism 2020 and Corporate goal for
Tourism 2020 is set between $115 billion – $140
billion overnight visitor expenditure. (Source:
Tourism Australia Corporate Plan, 2018)
2018-2020
Looking
Beyond 2020
2015-2017
Seeing the
Result
2010-2014 Setting the
Foundation
Australia Tourism
The growth for the Tourism Industry is said to be expanding due to developing markets
which includes China and is approximately one of the largest contributors to Australian
economy specifically for tourism industry by the year 2020. China was announced as the
quickest growing tourist market in 2013.
As seen in Figure 1.1 below, the number of tourists in Australia is increasing every year which
gives the country a positive outlook for the years to come.
Figure 1.1
During 2014-15 Australian tourism has employed 580,800 people with 5% of the labor force
and 43.7% of the employed tourists were part time. However, the number of visitors from
China doubled to 626,400 (Figure 1.2) from 2006 to 2012 which reached the zenith and
outweighed the number of visitors coming from UK.
Figure 1.2 Year by Year Trend
In this report, we will be studying
the behavior of Chinese tourists
towards Australia. We have seen a
lot of Chinese migrating in this
country and at the same time who
are students. Businesses are mostly
owned by Chinese people and we
will get to know more about their
culture and the reason behind their migration leaving their home-country at once.
Background of Chinese Tourists
Demographics & Behavior
According to research, tourists coming from Western places can be a bit tough to
acquire an extensive understanding with the context of Chinese civilization and the
uncommon claims of Chinese travelers. In 2018, China has become the largest inbound
market for Australia’s visitor arrivals and the biggest merchandise for total spend and visitor
nights. Seeing the growth of Chinese population in Figure 1.4 is tremendously active in the
market of Australian tourism.
Figure 1.4 Australian Bureau of Statistics
Analysis
Political Factors
In 2026-27, continuous growth is anticipated with China to sustain the numbers in the
next ten years to 3.9 million. During the Turnbull Coalition Government, social and cultural
ties have been strengthened under Australia’s economy with China. As expected, China made
their way to the number-one spot that goes along with the recent completion of China-Australia
Year of Tourism. The link between the two countries was noticed by the Year of Tourism
advertising opportunities to further develop a two-way travel and to give honor with China
market for the industry of Australia’s tourism.
Economic Factors
$10.9 billion is being spent by Chinese tourists during their holiday in Australia with
just the intention of travelling. According to statistics, China has the biggest population leading
to 1.38 billion people which means that less than 1% of their people have visited Australia.
Chinese are extravagant shoppers. Their indulgence is to travel and spend whatever amount it
takes. According to Australian Bereau Statistics, there were 1.39 million visitors from China
as of February 2018, with the growth of 13.2%.
Social Factors
With the challenge of the growing numbers by Chinese tourists (Li, Harrill, Uysal,
Burnett, & Zhan, 2010; UNWTO, 2011), a new researched was developed to give
understanding to the Chinese market. In comparison with western travelers, Chinese tourist
have their own expectation with regards to the service and amenities, choices of food, and
shopping behavior. Chinese tourists as compared to Westerners vacation values, it was
proposed by Fu, Lehto, and Cai (2012) that both groups enjoyed scenic views, food and
socialization with other people during their trip.
Technological Factors
Social media have impacted the behavior of Chinese tourists in its role in Australia and
is deserving of its commendation. 564 million Chinese were classified to be active on social
media at the end of 2012. Moreover, Chinese travelers have been constructed to be fully
associated with social media (Kristensen, 2013; Shao et al., 2012). Overall the tourist market
for Chinese is complicated.
Environmental Factors
China experience winter and summer which is somehow correlated with the weather in
Australia. Tourists coming to Australia, with not only pertaining to China, they tend to study
the weather behavior before travelling to a different country. There are different factors to be
considered when travelling overseas and considering weather is one important component
when it comes to travelling.
Legal Factors
Since China has become the source of tourism for Australia with 1.35 million visitors
and gaining $11 billion annually, tourism experts have teamed up to give focus with studying
the behavior of Chinese tourists travelling to Australia. China-Australia Year of Tourism has
been formally named last 2017. Approved Destination Status (ADS) guarantees its best
adventures during group tours travelling to Australia and has been the greatest demand since
then. The strong tourism partnership with the said countries have been stronger since the
beginning and has been the main feature succeeding the inauguration of its China-Australia
Year of Tourism in 2017 by Minister for Trade, Tourism and Investment – Steven Ciobo and
Dr. Li Jinzao, the Chairman of the China National Tourism Administration (CNTA).
Strategy
Market Segmentation
The rich cultural and geographical heritage of the Commonwealth of Australia makes the latter
one of the best possible places to visit on the planet. In order to ensure the attraction of the
maximum possible number of visitors to these shores, the initiation of proper market
segmentation process is essential. Market segmentation is regarded as one of the core element
of marketing (Press & Simms, 2010). Kotler and Roberto (1989) support the idea that Strategies
must be tailored to suit the needs, wants and behavior of the
Focusing on the above figures, for the success of our e-commerce strategy, we will segment
the Chinese market into two main segments. First is high leisure tourists (including visiting
friends and relatives) and second businessmen. The high leisure tourists generally visit
Australia for exploring aquatic and coastal attractions, experiencing the taste of Australian food
and wine. They are also interested in sightseeing and adventurous experience at natural and
wildlife attractions and gaining memorable experience of local culture. On the other hand,
Businessmen come to take part in business events. The good relationship between Australia
and China has also been helpful in the establishment of a proper industrial relation between the
countries, with China being the largest trading partner of Australia (Pham, Nghiem and Dwyer,
2017). We will focus the people aged between 20-60 years including both working and retired
men and Women who want to visit Australia for holidays and business activities. In regards to
geographical segmentation, our targeted cities will be Beijing, Guangdong, Shanghai, Jiangsu,
Zhejiang and Hubei. We will focus on these cities because the research survey shows that these
are main cities of China, the most tourists come from (Tourism Research Australia, 2018).
Source: International Visitors Survey (Tourism Research Australia, 2018)
Targeting
Targeting involves the evaluation of market segments and the selection of target market
segments. Differentiated marketing is the most common target market approach used in tourism
nowadays. It focuses on target several segments with different offers for each segment
(Tsiotsou and Goldsmith, 2012). The targeting of the different market sub-segments of Chinese
tourists to Australia is an essential factor for consideration. Based on our segmentation, ecommerce strategy will focus mainly on mobile users who access internet and social media
apps in their routine life. Tourism Australia has its collaboration with online travel portals such
as Ctrip.com, Qunar.com, Tongcheng.com and Tuniu.com (Corporate Plan, Tourism Australia,
2019). So through these portals, it will convey its offers and messages to Chinese people about
the tourist attractions and world best experiences.
Our e-commerce strategy will also pay attention to the affluent people who have the potential
to spend and invest more money while visiting Australia. This will help to generate better
financial growth and opportunities for Australia. Some of the main features and aspects of the
targeting strategy for Tourism Australia have been provided below:

Targeted Market SegmentTargeting Strategy
Leisure Tourists (Affluent and who use
internet/social media in their routine life)
Promotion of Australian adventure tourism
spots like Margaret River and the Great
Ocean Road, natural beauty, food and wine
and Aquatic and coastal attractions using
platforms like social media websites, apps
with the help of images, videos
accompanied with package offers with
discounts
Businessmen(Affluent and who use
internet/social media in their routine life)
Promotional strategies (featuring the best
qualities of the Australian accommodations
and business growth opportunities) in
online measures

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The implementation of appropriate focus on all the targeted market segments is necessary for
the procurement of success in attracting even higher numbers of Chinese tourists in Australia
and ensuring that they partake in Tourism Australia’s services.
Positioning
Since Chinese market is one of our best potential growth, being an economic powerhouse, and
according to our market overview in 2016, Chinese travelers was the second largest inbound
for visitor arrivals, and the largest market in total spend and visitor nights, Tourism Australia
will invest a full project of marketing activity in China, to achieve our >$6 billion forecast
value in 2025.
Tourism Australia position itself to propose a creativity strategy online to promote the appeal
factors that attract Chinese tourists to Australia, especially for holidays purpose, which was
mentioned in SWOT Analysis, the keys drivers of destination choice, including safe and
security feeling, friendliness of the people, Australian natural attractions and wildlife, wine and
food experiences.
To explain why Australia is the best choice to visit, is essential to mention in additional that
Australia has over 10,685 beaches, over 500 national parks and 8,222 islands, so it is clear that
Australia can offers a unique experience to every kind of travelers, through its unbelievable
size, whether if they are looking for an island getaway, cultural experience, adrenaline, touch
with nature and its vast wildlife, or big cities’ experiences, such as business and entertainments.
Below are descripted some examples about what Australia has to offer and what make it so
unique and unforgettable.
• Spots for camping, great outdoors to spend few nights
• Breathtaking waterfalls: spectacular natural waterfalls and rock formations
• Experience Aboriginal cultural: Canberra and other regions can offer optional
guided Aboriginal tours
• The main cities offer different life styles
• Great winery experiences, including South Australia and Tasmania for example.
• Best food and drinks festivals, featuring local produces, wine, beer chats and spirits
around the country, including Western Australia Gourmet Escape, Perth, Swan
Valley and Margaret River, Tasmanian Whiskey Week, Hobart, Tasmania,
Canberra Truffle Festival, Canberra, Noosa Food & Wine Festival, Noosa,
Queensland, The Grampians Grape Escape, Dunkeld, Victoria, Tasting Australia,
Adelaide, South Australia, Orange F.O.O.D Week, Orange, New South Wales and
Melbourne Food and Wine Festival, Melbourne, Victoria.
To explore all this experience, Tourism Australia website the tourist can plan its trip, having
tips for destinations, accommodations, available tours, information about weather Australia,
and other information.
Value Proposition
The presence of a combined travel package that can let a Chinese tourist experience the
wonders of both the Australian cities and the aesthetic natural features will be one of the
greatest offerings of our e-commerce strategy for Tourism Australia. Furthermore, it will also
ensure that the tourists (including both leisure and business tourists) actually gain a complete
experience of almost all kinds of Australian attractions (both natural and man-made) in
accordance with the procured packages. The perceived value of the provided services on the
part of the Chinese tourists and the level of expectations that they have regarding the offerings
of Tourism Australia has to be exceeded. This can lead to the management of a high level of
customer satisfaction as well, thereby leading to the retention of a proper marketing position
for the reviewed company on a consistent basis.
Action Plans
In order to make the marketing strategy sustainable, providing the value for tourist is essential.
Consumer behaviors would be analyzed at the first step. There are two different types of factors
affect tourist’s destination choice. First, motivation factors which will refer to comfort, climatic
conditions and nature and wild life are inbuilt characteristic; second, concern factors which are
security and safety, affordability, food availability, friendly open citizen and transportation
(Dahiya, Kirti & D.K Batra, 2016).
Nowadays, safety and security gradually become the first concern factors for tourist. Tourism
Australia as non-profit organization is intrinsic trustworthy. However it must be reachable by
potential tourist in China, and the best way is to cooperate with official and travel-related
organization. Consistent content sharing is attractive for Chinese tourism related organizations.
Because they need to process destination’s information to make their own tourism product and
hold the value added event.
Digital Marketing and Social Commerce
Chinese tourist search travelling information with online resources account for 72%, travel
websites and blogs (51%) and social media (21%) respectively, and others are traditional
channel travel agents and tour guides(24%) and print publications(magazines, newspapers). So
the digital marketing will be the main choice to implement the marketing strategy. The most
active social media platforms are Wechat, Qzone, Youku and Sina Weibo. Recently, the short
video become most attractive content delivery method for people in China, so the Tiktok will
be the most popular alternative platform to broadcast. To create brand awareness, we choose
the Wechat official as the text based content sharing platform and Tiktok as the video based
content platform. Wechat official have biggest and widest users in China, and Wechat official
provide almost all the services which always provided by apps or website as content sharing
company. Tiktok’s decentralized algorithm brings the possibility to attract thousands of fans in
one night.
(Source: Kizmaz, 2019)
(Source: Kizmaz, 2019)
Security and Payment Methods
All the popular platform provides third party payment method, such as Alipay and Wechat
payment system which are wildly used in China. And also all these platform provide the
VISA/MASTER worldwide payment methods. Tourism Australia collaborates with its
partnership to increase their security system and minimize scam.
Order Fulfillment
Chinese people are rarely to visit an unfamiliar website directly because it is very expensive to
accumulate users and promote the website directly. However, platforms and social media
provide affordable internet traffic for starters. When tourist visit Tourism Australia Wechat
official or Weibo, Tourism Australia can import the tour package from tourist companies, and
tourist can pay directly through these platforms.
Mobile Marketing
In China, the smart phone penetration rate is 55.3%, and in the city the ratio will be much
higher than that. The whole Australia tourism experience can be improved by an integrated
mobile phone app. The one-stop app can be the main mobile internet entrance when Chinese
tourists come to Australia. The app can integrate local information from different state in
Australian and provide Chinese version as well as can be downloaded in the Chinese app store.
The most important index of the app summarize as user experience. For tourism industry, the
source of user experience is nature environment, security, convenience, local culture,
accommodation and so on. Artificial-intelligence is wildly applied in China now, and the
development of the app could introduce Tencent, which has the experience to develop tourism
with the tourism in China. And also the characteristics of Australia tourism and Australian
services can be showed in the app, air quality index, traffic flow index, accommodation index,
and local food index and so on. The app demonstrated the combination of advanced technology
and original nature environment which are most attractive part of Australia.
WeChat Platform Design for Tourism Australia
Conclusions
To sum up, although Tourism Australia has managed to maintain a proper marketing position
on a consistent basis but to develop a competitive advantage in today’s globalization era, it
needs compatible and innovative e-commerce strategy that can help to attract more tourists. It
is necessary due to the growing engagement of people in using social media since it very few
people use the traditional way of planning their trips or holidays through travel agents, TV or
radio advertisements. Therefore, an effective e-commerce strategy is essential to increase
number of Chinese tourists to Australia as they are top most visitors to Australia and also spend
most money as compare to other people from different countries. To fulfill this goal under the
e-commerce model Tourism Australia ensures a higher level of its resources allocated for the
continuous betterment of the customers perceived value aspects. The initiation of the
Organisation’s action plan can potentially enable the reviewed of Tourism Australia to be more
successful in attracting a higher number of Chinese tourists to the Australian shores in the
future.
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