Click here to access profiles of gay and lesbian leisure travellers who have taken a holiday in the last 12 months.

Just over 2% of Australians aged 18 or over (an estimated 370,000) consider themselves to be homosexual with Melbourne and Sydney accounting for slightly less than half (46%) of all gay Australians.  When including country areas, Victoria and New South Wales account for approximately two-thirds (67%) of gay Australians, according to the latest Roy Morgan Single Source data. 

With the 2007 Mardi Gras season upon us it is interesting to consider the lucrative gay market.  In this instance Roy Morgan Single Source data focuses on the tourism industry:

• The gay leisure travel market comprises an estimated 242,000 gay Australians, with turnover of approximately $965 million a year;
• Sixty-five per cent of gay Australians have taken at least one leisure trip in the last 12 months.  This is slightly below the general population (71%) and the average length of stay for gay travellers (7.6 nights) is less than the total travelling population (8.2 nights).  However, expenditure per night is higher for gay travellers at $147 per person per night (compared to $137 for all travellers); and
• Gay travellers are 50% more likely to book holidays via the Internet.

The sexual preference of respondents is asked as part of the extensive consumer profiling information collected via the Australian Roy Morgan Single Source survey.  More specifically, respondents are asked to agree or disagree with the statement “I consider myself a homosexual”.  Those over the age of 18 or over who agree with the statement are the focus of this research.

The gay and lesbian market is recognised throughout the tourism industry as an important niche segment, representing differences in holiday behaviour, attitudes and yield opportunities when compared with the average Australian adult population.

These findings are based on 23,049 interviews conducted between October 2005 and September 2006 with Australians aged 18 years or over.  “Travellers” are defined as those who have travelled for leisure purposes in the last 12 months.

The Gay Population

The majority of gay Australians live in major cities.  More people who consider themselves to be homosexual reside in Sydney (98,000 people or 26%) than in Melbourne (74,000 people or 20%).  Melbourne and Sydney combined account for slightly less than half (46%) of all gay Australians.  When including country areas, Victoria and New South Wales account for approximately two-thirds (67%) of gay Australians.

Contrary to some thinking, gay people do not actually travel more than the overall Australian population.

Of the 370,000 Australians who consider themselves as homosexual, 65% took at least one leisure trip of one or more nights in the last 12 months, compared with 71% of all Australians.  The average number of leisure trips taken in a 12-month period is similar for both groups (an average of 4.5 for “total” travellers and 4.3 for “gay” travellers).

Gay travellers spend more per night, but stay for less time.

In terms of market potential, how do gay travellers compare with other ‘niche’ segments within the tourism sector?  The table below compares market size and expenditure data of gay travellers with other niche travel segments.

SPEND AND SEGMENT SIZE
Special Interest Group	Total Travelled in Last 12 months ('000)	Avg. # of Nights on Last Trip	Cost per person per night ($)	Avg. # of Trips in Last 12 months	Estimated Total Segment Yield ($M)
Total Tourists	11,114	8.2	$137.04	4.5	$46,236
Caravan and Campervan Tourist	562	15.3	$  92.62	5.8	$  2,585
60+ Tourists	2,293	11.1	$128.45	4.8	$13,338
Gay Tourists	242	7.6	$147.29	4.3	$     965
Source: Roy Morgan Single Source Australia; Base: Population 18+

Compared with other traveller groups, the gay travel market does not comprise a large number of travellers.  However, gay travellers spend the most per person per night ($147) demonstrating high yield opportunity if persuaded to stay longer.

Gay travellers favour interstate destinations.

Gay travellers are more likely than the total travelling population to holiday outside of their state/territory.   Amongst gay travellers, 39% included an interstate destination on their last trip compared with 33% of the total travelling population.

Gay travellers are more likely to be intending to travel overseas, as well as indicating a greater likelihood of interstate travel intention.  This is reflected in the difference in holiday attitudes endorsed by gay travellers compared with the total travelling population:

•  “I prefer the bright lights and big cities when I travel” — gay travellers are twice times as likely to agree;
• “I like to take my holidays away from crowds” — 20% more likely to disagree; and
• “It only feels like a holiday if I leave Australia” — almost three times more likely than “total travellers” to agree.

Along with our major cities, destinations of interest to gay travellers also include mountainous and coastal regions.  Domestic destinations they intend to travel to include:

• Melbourne (14%)
• Mornington Peninsula, Portsea, Flinders, etc: (5%)
• Sydney (10%)
• Blue Mountains, Katoomba, Lithgow, etc: (5%)
• Far North Coast, Byron Bay, Tweed Heads, Lismore, Grafton, etc: (7%)
• Brisbane (8%)
• Surfers Paradise (7%)
• Cairns, Atherton Tableland: (6%)

Gay travellers are more likely to seek an eco-friendly tourism experience.

More than one-quarter (26%) of gay travellers agree they would like their next holiday to be “a total ecotourism experience”, compared with 18% of the total population.  This makes gay travellers an important target market for tourism operators and suppliers of specialist eco friendly tourism products and services.

• “I avoid staying at accommodation that does not have genuine environmental policies” — gay travellers are 50% more likely to agree; and
• “For my next holiday, I'd really like a total ecotourism experience” — 40% more likely to agree.

Gay travellers are more likely to organise holidays for themselves and for others.

More than three-quarters (76%) of gay travellers agree they “usually book and arrange all my holiday travel details myself” compared with 70% of the total population.

Gay travellers are also 50% more likely to book part of their holiday over the Internet (28%) compared to total travellers (18%), this includes booking through websites and via e-mail.

The challenge for marketers and tour operators is to present an appealing message for what they offer the holiday maker early in the planning process.  This would provide gay travellers with the opportunity to engage with the destination and potentially lengthen their leisure trip and in turn generate greater yield.

For further information:
Jane Ianniello - International Director of Tourism, Travel & Leisure - Roy Morgan Research

Office: +61 (0)7 3318 7000    Facsimile: +61 (0)7 3318 7097    Mobile: +61 (0)423 024 412    Email: Jane.Ianniello@roymorgan.com

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