Dubbo Regional Council & Ballina Shire Council – Boost local economy through tourism opportunities, as well as creating jobs.
Council-owned Dubbo City Regional & Ballina Byron Gateway Airports experienced a catastrophic decline in patronage, revenue and visitation due to COVID-19 travel restrictions. Dubbo Regional Council & Ballina Shire Councill worked to trial a new pilot to offset the impact of regional travel restrictions.
Background
During COVID-19, movement restrictions in other locations reduced incoming tourists into both Dubbo Regional and Ballina airports. Dubbo and Ballina were unaffected by travel restrictions and could service residents desire to travel safely within NSW. To help offset the impact of reduced visitors from other locations, Dubbo and Ballina Councils worked with FlyPelican to trial a new regional route.
Market surveys held during early stages of the COVID-19 pandemic indicated consumers wanted easy, fast, safe, affordable and exciting new options for places to visit. Further research indicated new flight route destinations had to be longer than a 4-hour drive to support increased flight patronage. Passengers also wanted to avoid passing through metropolitan airports, preferring to travel direct instead of having quick stops as part of a double flight route.
Implementation
Dubbo Regional Council initiated discussions with Ballina Council in relation to a potential trial. The councils leveraged local travel knowledge and destination awareness to identify market-ready options.
The Councils’ Economic Development and Airport Advisor Panels prepared financial modelling, at various ticket price points, which analysed the potential costs and benefits of the proposed flight route to stakeholders.
The Councils used their market research, financial modelling data to engage FlyPelican Airlines.
First Virtual Roundtable
The September 2020 School Holidays provided a target window to launch the service, however comprehensive planning was required.
Dubbo Regional Council, Ballina Shire Council and FlyPelican Airline met to:
- set key project timelines, priorities and goals for each organisation.
- build a project scope satisfying the core goals of each party and their expected outcomes.
- allocate resources to manage and leverage industry relationships to help the project’s success.
- analyse existing airline schedules, routes and timing information and demographic data to identify potential opportunities.
- set budgets and allocate marketing resources to both LGAs.
- ensure all regular passenger travel service regulatory approvals were checked and confirmed.
Modelling outcomes & approval to proceed
The Economic Development Teams in both councils modelled scenarios to understand project feasibility and viability. Forecasts were performed for both legs of the flight –Dubbo to Ballina/Byron and Ballina/Byron to Dubbo.
Executive Leadership teams for each council supported the proposal which was formally adopted.
All parties agreed to a three-month trial of the new flight service to commence in late August 2020 and to run until November 2020.
Marketing
Marketing the new flight route was essential to ensure the route’s success. The councils developed a destination marketing campaign to increase awareness of the new flight.
Other marketing activities included social media, radio competitions, media releases, cinema advertising, transport advertising (buses) and billboard advertisements.
A media event was held for the inaugural flights which included representatives from both Councils and the FlyPelican CEO.
Challenges
There were challenges related to the ongoing pandemic and evolving health advice and travel restrictions. These included:
- Planning for and modelling of all scenarios including the worst case of cancelling the new service gave all parties clear information to consider risks and opportunities.
- Finding media and communications channels in different markets.
- Ongoing monitoring for changes to COVID-19 outbreaks, health advice, consumer behaviour and perception of and willingness to travel.
- Positioning airfares at affordable but sustainable levels to maintain market demand.
Outcomes and Results
Data sharing arrangements were put in place so that outcomes could be measured and assessed.
Economic Development Staff used available data sources, performance analysis and surveys to determine success of the project. Direct financial and economic impacts formed part of the performance monitoring.
Flight Data
Fly Pelican shared data on how many people were using the flights and the average ticket price. After 3 months of the new service launching, the average occupancy for flights in both directions was near capacity.
Councils having access to de-identified ticket sales and the forward bookings of future flights information was a great tool to monitor the success of the initiative.
Regional Activity Data
Passenger survey results showed the average trip for passengers was close to a 7 nights average. Original modelling expected an average of 2 nights stay. This positive outcome was well above initial modelling and economic impact assessments.
Tourism Research Australia data showed an average spend of visitors was $1,890 per person, per trip to each region. A total of $2,268,000 of direct spending was generated for both LGA’s. An estimated twelve full time jobs were created across both LGAs.
Ongoing Success
The trial service was a success with over 1,200 people using the service throughout the initial trial period of 3 months. This represented approximately 600 people entering each LGA.
At the end of the initial 3-month trial period, all parties agreed to extend the trial for another 3 months throughout summer, with the inclusion of an extra weekly service.
At the end of this extension the Airline announced the route would become permanent. This route is continuing to perform well.
Return on Council Investment
The Councils’ initial investments were directed to marketing to establish the flight route and raise awareness of the new flight route. A destination marketing campaign was performed in each council region to generate interest in the service.
Traditional indicators were used to measure the effectiveness of the campaign. Survey data showed 16 per cent service users had done so after seeing Social Media advertisements. The destination advertising campaigns were determined to be an efficient and effective campaign.
Broader Community Benefits
The social and mental wellbeing impact from the new service to the community was immense. The new service route also helped to connect families unable to see each other for long periods of time due to COVID restrictions. These types of benefits were immeasurable during such a difficult time.
Key learnings
Go your own way with confidence – there were concerns about launching a new flight route during a global pandemic. While there were significant opportunities, appropriate due diligence was undertaken to ensure it would be viable.
Plan every step, start now and use a “Sunset Exercise” – if you have a good idea, start researching and planning. A starting point could be a Sunset Exercise which outlines what a successful program would look like at the end. Starting with the end in mind helps to work back until you determine what your first steps will look like.
Calculate and model potential outcomes, including possible failure – work out all possible scenarios and model the economic outcomes to support decision makers. Plan and forecast worst case scenarios as well as expected and best-case scenarios. Modelling flight load and the direct financial implications of each scenario prepared the councils to make adjustments if necessary.
Think Win-Win! (Not Win-Loss!) – when commencing this initiative, Dubbo Regional Council strategically considered how all parties could gain from the new flight route. Two-way demand was essential to the route’s success and allowed return airfare prices to be reasonably priced. Through collaboration, all three parties provided input to the pricing structure and flight scheduling. Appropriate pricing of the new route created a successful tourism service and a viable long term flight route option for the provider FlyPelican.
Grow the pie, not just your slice – don’t approach your project as taking someone else’s slice of the pie, but rather aim to grow the overall pie. This allows everyone to benefit from your initiative.
Council Details
Population size: Ballina 44,000 / Dubbo 52,000
LGA size: Ballina 485 / Dubbo 17,352 km2
State Electorate: Ballina / Dubbo
Federal Electorate: Page Richmond / Parkes