Slide1: 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?
Speaker Introduction: 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
B) Statistical overview: B) Statistical overview 2005
Chinese Outbound
Travel Destinations *Zhang Qing/Byecity.com 2006:
34 million outbound travellers
Market Value:
17 Billion Dollars (?)
ADS and other forms of tourism: Business
Paid by company/bureau
Predominantly company of male colleagues
Convenience and time
Concentrated shopping
Appreciate flexibility and attention to time management Leisure
Self financed
Small groups of friends or family members
More flexibility and interest in attractions
Allocate more time for shopping. Most high spending still driven by business and delegations ADS and other forms of tourism
The nature of the Chinese traveller: 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)
Slide6: 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
Slide7: Where from?
South China
Eastern seaboard
North East
Western China
Beijing & Dongbei Shanghai & Huadong Guangzhou & Huanan Xinan & Xibei
Outbound travel decision making process: Outbound travel decision making process Destination
Near -> Far
Visa access
Recommendations
Marketing
Popular destinations (ADS): 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
Popular activities: Popular activities The ‘traditional’ activities
The break with tradition
Political change
Change in Attitude
Economic advancement
Demographic shift
Slide11: 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
Future Trends: 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.
Why localisation?: Why localisation? Language differences in Greater China
Lack of confidence in foreign languages
Chinese search engines
Trust in local presence
Customer feels important
Localisation pointers: Localisation pointers Language
Information offered in Chinese
Website
Customer service
Keeping in touch
Direct Sales: 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
Satisfying a Chinese client: 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
Information sources about the China Outbound Travel market: 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
The China Outbound Travel Handbook: 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
Slide19: Contact Us:
London, UK
Email: info@ccontact.com
Tel: +44 20 78719886 Mobile: +44 7821 093199 www.china-contact.cn 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