The New Gold- Luring the Chinese Tourist


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Every country in the world is now looking to attract the Chinese outbound traveler. This new era is unprecedented - an age where destination marketing is being taken to a new level in gaining Chinese appeal.

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The New Gold- Luring the Chinese Tourist

  1. 1. Luring the Chinese TravelerDec 2010
  2. 2. Marketing to the Chinese Tourist “According to China National TourismAdministration (CNTA), in 2015 China will bethe No. 1 tourism source market worldwide”
  3. 3. Marketing to the Chinese TouristThe CNTA said the growth rate of Chineseoutbound tourism for the first eight month ofthe year 2010 was 21% compared to the sameperiod of last year.This translates to an overall number for 2010 ofabout 58 million border-crossings fromMainland China.
  4. 4. Everyone Wants The Chinese Tourist“Taiwan tourism industry “The Japan National Tourism in Kaohsiung and “Indonesia is expected to Organization will also try Pingtung are attract more to attract Chinese scheduled to meet Chinese tourists enterprises to bring their with tourism officials through active employees or clients to from China tourism promotion in Japan” Monday as part of China” efforts to attract “Australian federal government more Chinese announced that it will visitors to the “Italys tourism authority is spend $30 million on southern part of asking its hotels to campaign to lure more Taiwan”. provide hot water in Chinese tourists Down rooms and calling Under.” for more signs in“Vietnam trying to attract “Canadian minister promises more Chinese Chinese in a bid to encourage extra to attract more Chinese tourists” tourists to Canada” visitors from China. “
  5. 5. China Outbound: Purpose of Travel
  6. 6. China Outbound: Purpose of Travel
  7. 7. China Outbound: Who?•  Young (20-39 years old)•  Well educated (with tertiary education)•  With higher income•  Working professionals and semi-professionals•  Top management of companies and government bureaus•  Small groups on an incentive trip•  Tech-savvy and fashionable (interested in cutting-edge gadgets and latest fashions)•  4:2:1 (3 generations – grandparents, parents and single child)
  8. 8. Characteristics Of Major Generating Regions•  Northern China (Beijing and Northeast China) - Most of the official travel is from Beijing - Beijingers are engaged in politics and love socialising - Work comes second to friends and family•  Eastern China (Shanghai and the Coastal Provinces Zhejiang and Jiangsu) - Regions with a history of overseas travel, resulting in relatives abroad - Wealthiest in terms of average income - Shanghainese are trendy and internationally oriented - Very price-driven, shrewd business people who drive hard bargains•  South China (Guangdong Province and Neighbouring Provinces) - Guangdong benefits from its proximity to Hong Kong as the commercial gateway into China - Its capital city, Guangzhou, is a major trading and commercial centre - Consumer spending is the highest among China’s provinces - People in the south prefer higher standard of services to cheap prices
  9. 9. China Outbound: Travel PreferencesShort Haul to Long Haul: Significant growing interest to ‘less discovered’ Europeandestinations; trips to S.E. Asia, Japan, Korea and Oceania still popularGroup Tour to Independent Travel: More Chinese travellers are able to apply forindividual visas (as long as they showcase sound financial and employment status)Multi-Country Packages to Hybrid Tours: Travellers are interested in in-depth travelrather than multi-country packages. They are keen to return to destinations enjoyedthe first time.The Chinese top priorities in life are keeping fit & healthy, professional developmentand spending time with family & friends.In terms of holidays, taking domestic holidays is at least quite important for 80% and extremely important for 9%. Foreign holidays are regarded as at least quiteimportant for a smaller proportion (61%) and extremely important for 10%.
  10. 10. China Outbound: Research Sources
  11. 11. China Outbound: Booking Pattern
  12. 12. How to engage the Chinese TravelerChinese Travelers Research Online, reachthem using…. Digital Marketing Social Search Media Mobile Online Media
  13. 13. Chinese Internet Fast FactsUp to June, 2010, the number of net citizens in China hasreached 420 millionThe number of broadband net citizens has reached 364 millionThe number of mobile net citizens in China has reached 277millionThe weekly online time of net citizens is 19.8 hoursThe growth rate of users for online payment, web shoppingand e-banking was 30%The number of Chinese websites is 2.79 million 26th Statistical Report on Internet Development in China (July, 2010)
  14. 14. Leveraging Digital Marketing Channels
  15. 15. Email Marketing
  16. 16. Mobile ChannelsWhen launching a mobile campaign, it’s importantto remember there are multiple mobile channels toreach mobile users.They include:•  Mobile websites•  Downloadable applications•  Mobile messaging•  Mobile video
  17. 17. Multiple Mobile Ad Types
  18. 18. Social Media•  Social Media can increase traffic to your site, including incoming links and search engine traffic•  It can increase your companys brand awareness on the Web•  It can increase your search engine rankings (SEO)•  It gives you quick access to a lot of people•  Its a great way to build engaging customer•  relationships•  Understand what your customers are thinking
  19. 19. Social Media Stages
  20. 20. Social Media – The Chinese Way
  21. 21. Search is the #1 online channel for destination researchA mix of other travel site categories are used as research sources, yetsearch eclipses even Online Travel Agencies Search engine 72% Online Travel 66% Hotel Sites 63% Airline Sites 59%Destination Sites 54% Travel Review 41% Travel Search 38% Car Rental Sites 38% Which online sources do you use toCruise Line Sites 26% learn about or choose vacation destinations?General Discount 20% (n=1339, only consumers in-market for or recently Tour Operator 15% booked destination travel who use the Internet) Travel Planning 15% Source: TNS
  22. 22. Search Marketing Google who?71% 22% 7%
  23. 23. Online Media (Display)•  Media Buying is typically considered the act of purchasing a predetermined amount of display media through a contract –  I Will spend $x over x days•  All rates are negotiable and can be on CPD, CPM, CPC or CPA basis.•  Signed contracts are called Insertion Orders (IOs)•  Performance goals need to be assigned•  Multiple ads for each standard ad sizeNote: Chinese publishers typical sell inventory on a ‘cost perday’ (CPD) basis
  24. 24. Online Media (Display)
  25. 25. SinoTech Group - Fast Facts•  Heritage in software development•  95 employees•  Global reach•  Travel & Hospitality Focused•  Offices in Beijing, Shanghai & Hong Kong
  26. 26. This presentation can be found at: Thank you - Dr Mathew McDougall | @sinotechian | @sinotechgroup