How the Chinese outbound travel market is changing

Slideshow Transcript

1. Slide 1: Travel Distribution Summit Asia Roy Graff Managing Director, ChinaContact How the Chinese Outbound Travel Market is changing • Who are the new Chinese visitors? • Effective sales and marketing strategies to attract Chinese • Which products and services appeal to the Chinese traveller? • What reliable information sources for this market exist?
2. Slide 2: Travel Distribution Summit Asia 2007 Speaker Introduction • 2005 to present: ChinaContact Managing Director • 2006: Conference Director, WTM-ChinaContact conference ‘China-the future of Travel’ • 2004-2005: China Country Manager, Octopustravel.com • 2003-2004: China E-Commerce Director • 2002-2003: China Senior Business Development Manager, Gullivers Travel Associates • Three years of business development, marketing and PR experience in China • Twelve years tourism industry experience • Fluent in Mandarin Chinese • BA in Chinese & Economics
3. Slide 3: Travel Distribution Summit Asia 2007 B) Statistical overview 2005 Chinese Outbound Travel Destinations 2006: 34 million outbound travellers Market Value: 17 Billion Dollars (?) Zhang Qing/Byecity.com
4. Slide 4: Travel Distribution Summit Asia 2007 ADS and other forms of tourism • Business • Leisure – Paid by company/bureau – Self financed – Predominantly company of male – Small groups of friends or family colleagues members – Convenience and time – More flexibility and interest in – Concentrated shopping attractions – Appreciate flexibility and attention – Allocate more time for shopping. to time management Most high spending still driven by business and delegations
5. Slide 5: Travel Distribution Summit Asia 2007 The nature of the Chinese traveller • Who? – Small groups on an incentive trip – Top management of companies and government bureaus – ‘internationalised’ Chinese – 4:2:1 (3 generations)
6. Slide 6: Travel Distribution Summit Asia 2007 • Middle and high income • White collar annual income: USD $25k on average • Established pattern of business trips combined with leisure holidays • Increased awareness of luxury destinations • Desire to ‘outclass’ others • Prefer convenience and access to range of activities
7. Slide 7: Travel Distribution Summit Asia 2007 • Where from? – South China – Eastern seaboard Beijing & Dongbei – North East – Western China Xinan & Xibei Shanghai & Huadong Guangzhou & Huanan
8. Slide 8: Travel Distribution Summit Asia 2007 Outbound travel decision making process • Destination – Near -> Far – Visa access – Recommendations – Marketing
9. Slide 9: Travel Distribution Summit Asia 2007 Popular destinations (ADS) • Most popular destinations for Chinese – Reasons: politics, time, cost, cultural affinity, language, food • Top aspirational destinations – Reasons: status, novelty, culture, business needs, shopping Hong Kong, Macau, Japan, Korea, Thailand, Vietnam, Russia, USA, Singapore, Australia, Malaysia France, Switzerland, USA, UK, Australia, Germany, Canada, Italy
10. Slide 10: Travel Distribution Summit Asia 2007 Popular activities • The ‘traditional’ activities • The break with tradition – Political change – Change in Attitude – Economic advancement – Demographic shift
11. Slide 11: Travel Distribution Summit Asia 2007 • These changes now lead to change in activity types: – More family oriented activities – Variety of shopping and increased sophistication – Children’s pastimes – Cultural emphasis – ‘deep impact’ sightseeing – Development of short break holidays in Asia
12. Slide 12: Travel Distribution Summit Asia 2007 Future Trends • South East Asia will grow as a market for FIT – Taiwan: ‘reverse’ cultural colonialism – Thailand/Singapore/Malaysia: golf, sailing, gaming, shopping (short excursions) • Europe will become fashionable (+Weather impact) • USA/Canada will become popular once ADS is signed (depends on visa procedures) • Theme tours to become popular – niche markets emerging.
13. Slide 13: Travel Distribution Summit Asia 2007 Why localisation? • Language differences in Greater China • Lack of confidence in foreign languages • Chinese search engines • Trust in local presence • Customer feels important
14. Slide 14: Travel Distribution Summit Asia 2007 Localisation pointers • Language • Information offered in Chinese • Website • Customer service • Keeping in touch
15. Slide 15: Travel Distribution Summit Asia 2007 Direct Sales • Direct Sales – B2B: The tour operators and travel agents – B2C: travelling public • Internet Marketing – The Great Firewall of China – Hosting packages – Email marketing • Local Represetation – Selecting a local partner – Monitoring performance
16. Slide 16: Travel Distribution Summit Asia 2007 Satisfying a Chinese client • Attention to personal details • Understanding cultural sensitivities • Knowing your Hans from your Hui • Knowing of regional differences • Being flexible - adaptable to changes in plan • Chinese language information • Exceeding expectations
17. Slide 17: Travel Distribution Summit Asia 2007 Information sources about the China Outbound Travel market • China Contact website – www.ccontact.com/resources.htm • China…the future of Travel conference on bilateral tourism with China – www.future-of-travel.org • China Outbound Project – www.china-outbound.com • China Business Services – www.chinabusinessservices.com
18. Slide 18: Travel Distribution Summit Asia 2007 The China Outbound Travel Handbook “EXCELLENT NEW HANDBOOK OFFERS KEYS TO CHINESE MARKET“ Bruce Taylor, BBT Online, Belgium “(The China Outbound Travel Handbook) will tell you which Chinese are travelling abroad, how to reach them, how the travel industry is organised, and how to show your hospitality to Chinese visitors... the handbook will prove to be an accessible and valuable resource.\" CBBC China-Britain Business Review \"what a reservoir of info and statistics.\" R. Seth, Travel writer, India www.ccontact.com/handbook.htm
19. Slide 19: Travel Distribution Summit Asia 2007 www.china-contact.cn Contact Us: London, UK Email: info@ccontact.com Tel: +44 20 78719886 Mobile: +44 7821 093199 • Consultancy service: market access, marketing strategy, public relations, government relations, deal brokering • Localisation: tourism marketing materials, websites, press releases • Event management: exhibitions, product launches, trade fairs, business trips • Representation: local sales and marketing representatives