Gold Coast backpacker industry
Gold Coast backpacker industry

Gold Coast backpacker industry

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  • Pages: 1 (469 words)
  • Published: November 30, 2017
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1.0 Executive SummaryGold Coast located in the southeast corner of Queensland is not only well known recreation place but also plays as a major role in tourism industry. Gold Coast backpacker market has been increased and is ranked on the 2nd of Australia Queensland Tourism (Tourism Queensland, 2009). The purpose of this study is to analyse the Gold Coast backpacker industry and examine the broad environment then identify 3 key strategic issues facing the industry.This report provides an environmental analysis of Gold Coast backpacker sector and identifies the 3 key strategic issue facing Gold Coast backpacker. This report used a combination of methods including Porter’s five forces model to analyse its task environment and PEST analysis to assess its broad environment.

Research data was collected from a range of source including Tourism Australia, Gold Cost Tourism and Australia Bureau of Statistics.In this report the backpackers were described as young adults who choose budget accommodation option in order to spend more on other experiences in their journey. These travellers mostly use the Internet to gather information for travel. This has an influence on the Gold Coast backpacker sector. There is high intense in Gold Coast backpacker market due to characteristic of industry. Also many backpacker travellers tend to stay not only backpacker hostels but various alternative form of accommodation.

This report found 3 strategic issues facing Gold Coast backpacker market industry. One of the key issues is the student market. The growth from student market is seen as an opportunity for growth in this market. Another focuses on global financial crisis, which still has the potential to threaten Gold Coast tourism. The other one is was raised about backpacking travel. The other issue is the usage of technology within backpacker industry.

Technology is expected to remain s


trong driving force in the Gold Coast backpacker industry.2.0 Industry Analysis2.1 The Gold Coast Backpacker Industry SizeThe backpacker industry has been recognised as an important part of Australian tourism industry.

Even though the global financial crisis affected through the world in late 2009, Australia tourism industry was affected negatively (Tourism Research Australia, 2009). As a result, this affirmative aspect affects lots of overnight accommodations. Furthermore, Westthorp (2009) asserted that even though the global downturn the backpacker market has been significantly grown up compared to other accommodation industry in the past few years.In 2009, 132,749 backpackers visited in Gold Coast and around $126 million contributed to local economy (Tourism Forecasting, 2009).

In the same year, Gold Coast was ranked on the 2nd (Brisbane 15.2%; Gold Coast 13.2%) the backpacker visitor number (Tourism Queensland, 2009). The backpacker market is composed of 36.

7% of Queensland, and the result leads to 23.7% of Australia backpacker market (Gold Coast City Council, 2009). This numerical result can be seen as back packer organization market size has been increased compared to other accommodation organizations in terms of hotels and motels, which are 19.5% (Faulkner ; Tideswell, 2002). Read 

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government facility2.2 Consumer Group ServedThe consumer group may include local residents, international travellers, and employees. Of those groups, the international travellers are the main consumer group for the Gold Coast backpacker industry. The international visitors spent 14 million nights in backpacker accommodation while domestic visitors spent 1.4 million nights in backpacker accommodation (Australian Government Department of Tourism, 2009). In addition, the most countries which have visited the backpackers in Gold Coast are the Nationals from the U.

K (29%) followed by Japan (10%), Germany (7%), Switzerland (6%), Canada (6%), Scandinavia (5%) and Other (31%) (Gold Coast City Council, 2009). The main age group of backpacker’s are young adults, at 15 to 24 years of age (58%), followed by middle aged adults, at 25 to 30 years of age (37%). This shows that on the whole young international adults see the Gold Coast as a favourable place to visit. (Gold Coast City Council, 2009).2.3 Core BusinessThe core business of backpacker sector is definitely to provide accommodation.

The main source of income is derived from accommodation which constitutes two third of total income in tourism industry (ABS, 2007). The backpacker hostels provide accommodation in different forms of room designed for groups and single or couples from en-suite dormitories to twin/double rooms. The backpackers cannot be described as one homogenous group as there are differences according to demographics of gender, age and country of origin (Hecht and Martin, 2006). Therefore the backpacker hostels differentiate the core business to meet their different needs.

They provide not only accommodation but also various activity options such as surfing lesson, party cruise and water sports. The most backpacker hostels operate tour desk to provide up to date information and assist activity arrangement. Also some backpackers have their own bar to attract more guests and provide place for encouraging guest interaction. This also helps increase backpacker hostels’ income.

3.0 Key Influencing Factor on the Backpacker SectorThe internet is one of the key influencing factors to the Gold Coast backpacker sector. Golden and Cunningham (2005) argued that the backpackers are typically described as a web savvy and tend to exchange information their experience online. It is no wonder that the backpackers use internet as a tool to gather information, plan their trip, and pay for travel worldwide. The internet as a critical instrument for promoting travel destination and provide travel related services that have great influence on travelers’ decision (Bonn et al., 1998).

The internet is the most important source for international backpackers before they come to Gold Coast. Once they chose travel destination, they look for low cost accommodation as they are willing to spend more money on next adventure rather than expensive accommodation. Using the internet they can get access enormous information from photographs of chosen accommodation and room rates to local map and tourist attraction. The internet has also a function for the backpackers to communicate each other. They share the best hostel to stay, the best place to visit and what to avoid on their trip.

The majority of backpackers choose their hostel based on information available on the web (Heung, 2003). The internet has a significant role

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