The Impact of Flight Center on Inbound and Outbound Australian Tourism

This report examines the impact of Flight Center on the Australian tourism industry. It investigates the factors influencing both inbound and outbound travel, including economic contributions and tourism trends. The report utilizes a quantitative research design with a survey methodology and panel data modeling to analyze the effects of Flight Center on tourism growth. Key objectives include identifying the reasons for tourism increases in Australia, determining Flight Center's contribution, and evaluating factors affecting travel decisions. The report reviews relevant literature, presents research findings, and discusses the implications of these findings for the Australian economy. It covers the history of Flight Center, its expansion, and its role in connecting Australia with the world, while also analyzing the impact of domestic, inbound, and outbound tourism. The study also explores factors that discourage outbound travel, providing a comprehensive overview of the tourism landscape.

Running Head: Project Management
Project Management

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Abstract
Background: Flight Center has the travel outlet in Australia is an research field yet as it has
amplified over the years, its development is proposed to exceed inbound travel and tourism in
the country which in turn makes significant impact to the Australian economy.
Objectives: To examine and evaluate the aspects that affect the inbound and outbound
tourism in Australia by considering the reasons why tourist travel to Australia, what
motivates them for traveling to Australia and the unpromising factors for outbound travel
from Australia.
Methodology: The quantitative research design bring into line with the positivist paradigm.
In the present research, the research tool of survey has been selected for the research. The
survey method is used to find how flight center affected tourism and why tourism has
increased rapidly in last years. The survey is conducted with the customers of Trip advisor
and panel data modeling approach is used. The quantitative study will be used to examine the
numerical data (Bui, 2013).

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Table of Contents
Abstract.................................................................................................................................................1
Introduction...........................................................................................................................................3
Overview...........................................................................................................................................3
Background.......................................................................................................................................4
Project Purpose and Objectives.........................................................................................................8
Research Questions...............................................................................................................................9
Brief Literature Review..........................................................................................................................9
Research Methodology, Results and Discussion..............................................................................13
Panel Data Modeling.......................................................................................................................15
Factors that Affect Travel Trend Estimates.....................................................................................15
Conclusion...........................................................................................................................................19
References...........................................................................................................................................19

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Introduction
Flight Center opens the world for the one who want to travel as it one of the largest
supplier for travel services and products. It delivers high quality service to the customer by
providing tourism from overseas. It increases the inbound and outbound travel in the country
with in turn increases economic growth of the company. It is one of the leading travel groups
operating in more than 23 countries and the network is speeded in more than 90 countries
increasing the business globally all around the world.
Overview
Flight center has become world’s most profitable travelling agency delivering
amazing experiences to customers. It has engaged number of customers from all over the
world making a growth in the market. (Flight Center, 2018). Tourism is one of the important
components for the economy of the country. This travel group has expanded and marked a
remarkable growth for more than 40 brands. Tourism contributes around $47.5 billion to the
national economy. Flight Center has business in Australia, Canada, Hong Kong, United
Kingdom, New Zealand , United States, India, South Africa, China, Singapore, United Arab
Emirates and Mexico and has a annual turnover of around $20 billion. It is well recognized
around the world. This has increased tourism in Australia from international borders. In 2016
around 37.3 million people crossed Australia though majority movements were for short stay
and very less for long term stay in the country. The researched showed that major travellers
are for short stays, that is affected by seasonal changes and the reason for short stay is
holidays, visiting friends or relatives, or for biasness purpose. Other than short term stay,
people do come for long term stay or even some are migrated.

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Figure 1: Visitors to Australia
The above graph stays the stay of visitors in Australia. Some come for a short stay
while other for a long term stay.
Background
Flight center is not an overnight success story. The struggle started in early 19s. The
journey of Flight Center started in 1970 than business expanded rapidly. First flight center
was setup in Sydney in 1982 and a huge success was reported as the share price increased on
the first day of trading. It is a travel group which has the largest retail outlet in Australia. It
was founded in 1982. Now it is one of the leading travelling group consisting more than 40
brands. Flight Center provides travel services tremendously in last years. Chief part of
economy in Australia comes from tourism. This contributes in large amount of Gross
domestic product (GDP) and the tourism is growing day by day. Thus natural beauty has
attracted many tourists in the country from all over the world. Tourism is a boom for the
economy due to new emerging markets which is estimated to be the largest trade and industry
contributor to the Australian tourism industry (Krishna, et. al, 2015).

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Figure 2: Short Term Stay
Figure 3: Long term Stay
Long term stay in Australia has increased rapidly in last years the reason is for higher
studies or for business purpose (Preuss & Solberg, 2015).
Tourism- It can be concluded that Tourism is one of the important things for contribution of
Australian economy most of the contribution is from international tourist Tourism in
Australia has expanded because of which country has improved the facilities of travelling
from anywhere. Moreover, New Zealand contributes to maximum tourist apart from that

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many backpackers youth travel from all over the world. This is possible because of flight
center providing to connect to Australia from anywhere.
Tourists from different countries
Australia offers a huge international tourist; New Zealand offers one of the major percentages
of tourism in the country. One of the reasons for tourism is beautiful destinations like
Sydney, Brisbane and Melbourne are popular cities to visit. Approx. 2 million people visit
these places yearly. Apart from New Zealand, China, Great Britain, Unites States are
significant countries for supporting tourism in Australia (McLennan, Becken &
Moyle ,2017).
Figure 4: Major countries visiting Australia
(Source: https://www.worldatlas.com/articles/top-source-countries-for-international-
tourists-to-australia.html)
Tourist mainly comes for spending holiday but Australia also offers international business
market encouraging business events like meetings, conferences, exhibitions and associations

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meet. Apart from that not only inbound travel has increased in the country, outbound travel
is subsequently rising from 2009 as many Australians are travelling out of the country. The
outbound travel has increased due to rise of air services (King, B., & Dwyer, L. (2015).
Australia is promoting tourism as it grows both international and domestic tourism. Tourism
increases marketing which supports Australian government for promoting quality of services
and distribution of Australian products. The strong point of outbound travel is Australian
dollar as offering facilities of flight center help Australians travel overseas affordably
(Athanasopoulos, Deng & Song, 2014). Availability of advanced flight connectivity to all
major part has increased tourism. But the outbound travel has affected domestic tourism
(Khan, Qianli, SongBo, Zaman & Zhang, (2017).
Figure 5: Inbound, outbound and domestic tourism in Australia
(Source:http://www.ret.gov.au/tourism/Documents/Tourism%20Statistics/
tourism_facts_figures_may_20 10_screen.pdf)
From the above chart it can be seen that outbound travel has increased rapidly than the
inbound travel. Inbound tour is within the same country by to a different destination it

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contributes to the revenue of flight center wherein outbound tours help flight center to
globally grow around the world.
Domestic Tourism means travel of Australians in Australia itself it also accounts in
economy of the country. Domestic travel covers both one day trip to overnight trips within
Australia. Instant travel implicates a vacation away from home minimum one night at radius
of 40 kilometres away from home (Abascal, Fluke & Jiang, 2016). Other than that day
visitors also travel for a short trip for around distance of at least 50 kilometres from home for
few hours. Spending within the country is beneficial as total revenue generated in the country
is directly related to visitor exports, domestic travellers and government spending for
betterment (Gardiner, Grace & King, 2014).
Finally it is concluded that tourism is a booming industry for Australia and it’s one of the key
for future economic success this is achieved because Australia has invested a lot in tourism
sector to increase number of visitors. Travel constitute directly in the capital investment
(Espinosa, Fluker Jiang, 2015).
Project Purpose and Objectives
In this project, research is made on Flight Center and how it has increased tourism in
the country. Australia is investigated on its outbound and inbound travel to focus and identify
the reasons for tourism. For this research panel data modeling is used which showed the short
term departures from Australia to different places around the world. Objective of this project
report is:
A. Reason why tourism increased in Australia?
B. How Flight center has contributed to tourism?
C. When flight center started and its policies?

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D. Determining the factors affecting inbound and outbound travel in Australia?
E. Determining which factors influence the decision to travel abroad?
F. Determining factors that discourage outbound travel among Australians?
Research Questions
To solve these objectives there are several question that need to be researched
A. What are the top destinations for outbound travelers?
B. What factors motivate Australians to travel abroad?
C. How tourism contributes to economy?
D. What kinds of tourist visits Australia?
E. What factors discourage outbound travel?
F. For how much time tourist stay in Australia?
Brief Literature Review
On the behalf of Bank of Australia (2009), Fight Center is Australians largest travel
agency increasing global trading and contributing to economy. Flight center have provided
healthy growth in international as well as domestic profit. Future it has increased touring
sector by investing in other countries as well. Flight center is a traveler retailer covering all
sectors from students to business to backpackers providing luxury travelling. Extra ordinary
travel activities have increased in Australia from all over the world because of best travel
experience. Some people travel just to visit friends while some come for a holiday break. The
goal of this study is to know the relationship among air transportation and tourist industry.
According to Australia’s International Tourism Industry (2015) it is stated that
tourism in Australia has increased rapidly since past decades from 2.5 million to almost 6.7
million till 2014. Growth in tourism means step toward success of Australia. It has

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contributed to Australian economy apart from this Tourism has increased the demand of
international airline services (Ruhanen, Whitford & McLennan, 2015). Like flight center is
one of the main reason for tourism as it has easily connected globally to various destinations.
Flight Center enabled global market for international visitors. Tourism Industry researched
showed that major contribution for increasing tourism is from China, New Zealand, Asia, and
UK. Government has taken various steps increasing tourism by investing in tourist related
accommodations or infrastructure. Government has also aimed for some programs
encouraging tourism and many business plans. Thus international visitor are fascinated to
Australia not just because of its beauty but due to quality of service provided to tourist
(Tourism Research Australia ,2017). All research says that Australians choose to travel
outside the country for holidays to different destination have increased the outbound travel
these days.
According to Office of the Chief Economist (2017), Air transport facilities have
globally given a support for tourism as half of the tourist travel to their destination by flight
services. These tourists are making major contribution to the economy of the world.
Researcher showed that tourism would come up with70 million jobs and $11 trillion in GDP.
Growing of tourism sector has boosted national economy and promoted many countries the
reason behind this is opening up of air market. Tourism is directly dependent on the
transportation facilities and growth of tourism impact on increasing air transportation.
Transportation is one of the most vital components of the tourism business. As a well-
developed transportation system generates the possibility for reaching the particular
destination and numerous markets by providing the finest superiority service to the traveler.
Flight center is one of them main aim, as people nowadays care about traveling time more
than the airfares or the distance. Thus the only medium used by tourist is air transportation
which has reduced the time mandatory to travel from one destination to another and boosted

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the long-distance trips by sinking the time. Air transportation has become the most
widespread mode of travel in current society. Air transportation has made conceivable to
travel for long-lasting trips in a short time period which in turn increased the demand for
long-distance trips. Nowadays, the share of air transport in the market has full-grown
ominously. Improved facilities of transport as expanded tourism, however easily accessible
services have made tourism easy. For international tourism main mode of transportation is via
air. With astounding growth of airline services the world seems to be a small place as allows
billions of people to travel all around the world. Even the government realized importance of
tourism industry for the development of the country. Without the introduction of flight centre
services, rapid increment of tourism wouldn’t be possible. As flight centre is present in many
countries which owes a portion of success in tourism as they are expanded all around the
globe. Holidaymakers use these airline facilities to be a constant source of travelers in the
country thus the airline initially intended to bring in global tendencies.
In the views of Okamura & Fukushig (2010) , the main source pf earning forign
currency is tourism in the country. Educational and natural travel, adventure and sports
tourism, pilgrimage and religious destinations, and national parks and reserves are the areas
of the Australia travel industry. But it is clear that holiday business cannot be established
without a fast running transport system. More than 74 percent tourists drifting to Australia
pick air transportation. On the other hand it is one and only network that associates remote
tourist destinations to capital city and other parts. This indicates how dynamic the air
transportation is groomed the tourism industry. The stay by tourist in Australia can be for
short-term accommodation or backpacker or may be for business trip. It state that tourism
contributes almost $11 billion to GDP in 2014 to around $55 billion till 2022. Flight center
airlines have offered multiple designations which have restricted the ability of other countries
to travel to Australia by multiple designations via airlines. This has necessitated a process for

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allocating policies and procedures to Australian airlines. Flight Center services commission
has established for this purpose for increasing tourism and supported the achievement and
development of one business inspire growth and progress of the other.
In the perspective of Australian Bureau of Statistics, (2017) the service quality also provides
strong relation with the trust of the customers. The trust can be defined as the willingness of
the customers to rely on the company for the offered services. In the business enterprises,
confidence can be considered as the most important factor in establishing collaborative
relationship with other business organizations and enhancing the reliability of the
organization. The image of the organization and the overall impression of the organization
is a result of their feelings, attitude, and ad experience with the organization. The corporate
image of the organization is associated with the physical attributes and the behaviour of the
firm in the organization. The image of the organization is related to the communication
process of the organization and the manner in which the firms deploy their messages to the
firms as part of their strategic mission, purpose and identity. Therefore, the company’s
image is constructed on the basis of the services provided by the organization to the
customers.
In the perspective of Trend Flight Center (2018) ,the service provided by flight center
has a strong relation with the trust of the customers. The trust can be defined as the
willingness of the clients to count on the company for the offered services from all around the
world. The most important factor in establishing tourism in the country is air transportation
that can collaborative in the growth of business by enhancing the reliability of the
organization. Tourism has various tangible and intangible elements. The major tangible
elements include conveyance, accommodation, and other mechanisms of the hospitality
industry which attracts more tourism in the country. Major intangible elements narrate to the

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inspiration for fetching a tourist such as rest, chance to meet new individuals and experience
other beliefs, or simply to do something unlike and have an adventure.
According to Tourism Research Australia (2017), role of transportation has explored
the growth of tourism from developing economic growth and also growing the connection
among countries. Tourism is the key element promoting to country progress in terms of
transport infrastructure to tourism service providers. Growth of the country has a close
correlation with the tourism sector. As brining the business to the county international
tourism is one of the factors. Tourism sector is trying to bring forward the idea of smooth
travel in order to resolve sustainability and provide client pleasure. This includes providing
supportable transport solutions in both ends for business travels.
Research Methodology, Results and Discussion
The research design ensures that the indication based from the research assists the
people to successfully address the research problem in the most logical and unmistakable
manner as possible. The investigation design refers to the complete approach; it participates
in the diverse components of the study in a coherent and the logical manner. It refers to the
blueprint of research, which includes the data collection, measurement and the analysis of the
research data. The information obtained from the research will have severe implications for
the managers in the tourism industry. The research will try to establish the link between
customer loyalty and their enthusiasm towards tourism. The study offers valuable insight
about flight centre and inbound and outbound travels which supports the organization in
increasing the customer loyalty. In the last few years, there has been drastic increase in the
tourism competition between the firms in the tourism industry. Therefore, it is important that
the organizations develop their competitive advantage and attract more people in the country
by offering good quality of service.

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Panel Data Modeling
According to statistics, it is said that Panel data models are models containing
multidimensional data which involves observations of various phenomena samples developed
over a period of time of individuals, firms, countries. Panel Data modeling is said as pooled
time series or longitudinal data where Pooled time series is an individual unit that are small
in numbers but time series are large on the other hand Longitudinal series are individual unit
large in numbers but time series are small. Panel data modeling is used for tourism purpose
for assessing resistance of demand for tourism and for forecasting by developing a tourism
demand model statically (Eilat & Einav, 2004). This modeling provides large number of
information and more degrees of freedom as great number of observations are involved. It is
a mechanism to govern individual variance and studies the dynamics adjustment.
Panel data modeling is useful parameter for improving efficiency of economic
estimates by reducing the complexity and time series as it constructs more complicated
hypotheses. This tool is used for accurate prediction of data and it simplifies computation and
statistical inference of data efficiently (Hsiao, 2014).
Factors that Affect Travel Trend Estimates
Tourism visiting a place has several factors affecting them which can vary from cost of travel
to destination they are visiting. Tourism provides benefits to that place as it removes the gap
between rich and poor. As well as social awareness of that place increases due to tourist.
There are several factors that affect travel estimate of the place- Changes in income,
exchange rate changes, cost of air travel and migration to other countries. There are several
factors that contribute to boost up the Travel and Tourism Industry of a country (Freed,
2015). As tourism trade benefits country economically, environmentally as well as
sosioculurtrally.

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Tourism is one of the main factors of better development of the country; tourism not only
contributes in country’s economy. Rather tourism offers other benefits as well like
employment to local population. As time spent by tourist in the country gives employment to
people which in turn increases the family income. Environment factor of the country also
affects tourism (Muskat, & Muskat, 2016)
Outbound Travel Rate-Outbound travel in Australia is lower than the inbound travel. As
inbound travel contributes to positive GDP of the country as well as it is the chief source of
foreign exchange which creates employment and brings revenue to the government of the
country. Outbound travel doesn’t contribute to the economy of the country but airlines
companies get benefits from outbound tourism like flight center provides services which
welfares the travellers (Jin & Sparks, 2017). The standard of living and the facilities offered
to tourist have increased tourism in the country. According to the trend estimated the
outbound travel has increased in last years. In 2016, around 9.9 million people departure from
Australia due to business purpose or sending holidays (Tan & Tsui, 2017).
Income- From the research it can be said income in Australia is one of the determinant
reason for increasing short term departures. An inbound travel has increased the market
shares of business trios which showed increase in growth rates of the country. Key factors
which have affected international tourism is exchange rates in various countries and due to
low airfares .As well as tourism has contribution in investment sector which helps in tourism
marketing in the community. Per capita income of the company denotes the average income
earned per individual in specific area in a year (Gohary & Gohary, 2017). Outbound travel
has impacted the income of the country, which shows the correlation between GDP and
departure. There is clear correlation between outbound travel and income of the country;

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when the income is low trend of outbound travel also decreases where in when income is
high; outbound travel also increases.
Cost of travel- The researchers assessed that the facility of transportation as well as the cost
of transportation is the key reason for inbound and outbound travel from the country. Flight
center is responsive for travelling due to very nominal charges especially airfares from
Australia to New Zealand. This is the reason New Zealand contributes to maximum tourist in
the country. Cost of travel is inversely related to economic growth that means decrease in
economic growth leads to increase in cost of travel (Peeters, 2017). Cost of travel always
affects the outbound and inbound travel. Increase in cost of travel decreases the outbound
travel wherein reduced cost of travel increases outbound travel. People before planning to
travel look at the cost of travel whether it is domestic or outbound trip. Cost of travel
definitely affects the tourism of the country.
Migration- Effect of migration also affects the departures and arrival from Australia and
analyzed by (Dwyer ., Burnley, Murphy & Forsyth, 2015) states that effect of migration from
Australia as it states that out of 0.59 travellers, 0.79 tourists travel aboard for visiting friends.
On the other hand, the tendency of international departures from Australia is directly affected
by the immigration policy of the country (Thiesing, Henkel & Schmitt, 2017). Migration also
impacts inbound and outbound travel, Australian studied reveals the link between migration
and tourism as millions of people are moving overseas. Growth in migration is vital reason
for tourism as it contributes in enriching societies and other sectors. As many people have
migrated to Australia for business purpose or for their higher studies, thus their friends and
relatives visit the country which in chance increases tourism. Migrants’ income is
contributing in basic infrastructure in the country at the community level (Guarnizo, 2017).

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Exchange Rate- This report explains the effect of exchange rate on Australia’s tourism and
also the rate of increase in the tourism industry of Australia. In one of the studies, it is
observed that a sudden appreciation in Australian dollar does not have negative impacts
tourism industry of the country in the long run. The record shows that tourists from north east
Asia accounts to 28% , out of the total tourist which travel to Australia, followed by north
west which accounts for 21% between 1991 and 2010. There has been a tremendous
fluctuation in the Australian dollars against the used. It has been observed that in January
2016, the Australian dollar was decreasing and reached as low of 0.69. (Statistics courtesy of
the Reserve Bank of Australia). As the Australian dollar was depreciating, many industries
were benefited with this including the tourism industry (Karl, Winder & Bauer, 2017). Later,
it was observed that there was a rise of above 0.80 against the USD, leading to decrease in the
international visitors. This constant rise in the exchange rate will make the country less
attractive and more expensive even for the local tourism. According to tourism Australia, in
the year ended July 2017, total 8.6 visitors visited the country (Lee & Yue, 2017). In
addition, the success of tourism industry lately will add to the increase in the tourism industry
more. Further it can be also concluded that the exchange rate is not only the factor driving
tourism, There are other factors too which need to be considered. It is explained that if large
investments are done, the tourism industry will not be affected much (Webber, 2010).
Travel Agencies- Expansion of travel agencies has increased the growth of the country as
start off starts at very low fares so that more and more people can fly. Flight center covers
many countries that are the reason more people are taking flights and flying high. Plus
security of airlines has attracted more people to catch-up and travel. Australia being a very
big continent and consisting of a constant self-governing government is a unique place to
travel safe (Hales & Larkin, 2018). The country is popular for its attractive heritage which in
turn increases tourism. According to Australian Bureau of Statistics data in the year 2012-

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2013, it was also showed that tourism industry was greatly affected with the appreciation in
Australian dollars. But lately in the year 2013-2016, the dollar started to depreciate again
(Hardiman & Burgin, 2017).
Substitute Destination- Australia has attracted many tourists by its beauty and destinations
that can’t be missed Sydney is on the major spot of attraction. Not only places but it is also
known for raw materials, monuments, sight-seeing and landscapes. Australian wildlife is also
popular among the tourist from all over the globe as kangaroos are famous over there. Lately,
Australia has become a dream destination as there are many beautiful places to visit like
opera house, Great Barrier Marine Park, Harbour Bridge and Melbourne (Ma, Hsiao & Gao,
2017). Beaches in Australia have contributed in attracted tourist for holidays (Abodeeb,
Wilson & Moyle, 2015). The hospitality of Queens land and casinos attract abundant people
from all over the world come to Australia as there is easy connectivity of flights from
everywhere.
Conclusion
Australia is net destination explored for tourism the inbound tourism has grown faster
than the outbound travel. It is concluded that the contraries economic growth leads to high
earning in Australia which as a major motivation to international departures. Travel and
tourism field is rapidly growing in world. Every year, the travel industry is growing that has
provided parallel growth to the airline companies. At the same time travelers throughout the
world started travelling more due to flexible facilities. Apart from that advances in air
technology has meant that travelling by air is now fairly safe, economic, quick and most
importantly comfortable. After World War II the development of the airliner services led to
quick falls in seat cost per passenger per kilometer and increasing tourism in the country.
These advances have contributed in the growth. This is majorly contributes by Flight Centre

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Travel Group as it is part of responsible Travel pledge and association of the United Nations
Global Compact.
References

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