China travel online 120418

www.chinacontact.org @chinacontact #TDS_China www.ChinaContact.org 1

Online Travel in China China has over 500 million internet users. Sina Weibo, the popular microblog has over 300 million subscribers. Online travel in China is growing three =mes as fast as the total market and taking market share at a faster rate than in the West. In 2012, close to 25% of travel will be booked online in China, up from just 5% 5 years ago. This year, 80 million Chinese will travel abroad, increasing to 100 million by 2015. What are you doing to capture the aIen=on of the internet savvy Chinese traveller? Do you have a distribu=on strategy for China at the ready? Roy Graff, ChinaContact 18 April 2012

About ChinaContact •  Bou=que China market entry specialist for the tourism, hospitality and internet sectors •  Strategic consulta=on and mentoring for market entry and brand development •  Direct access to China’s travel trade network via oﬄine and online distribu=on and marke=ng •  Social media engagement and marke=ng 3

Roy’s background •  1992: First China visit •  1996: Israel tourism oﬃce representa=ve in Taiwan •  1998: Graduated from SOAS with BA in Chinese & Economics •  1997-‐2000: gta -‐ Worked with Chinese outbound tour groups •  2000-‐2002: Independent travel business development for gta •  2002-‐2003: Independent travel division area manager-‐China, gta •  2003-‐2005: Greater China E-‐commerce Director, gta Country Manager, Octopustravel.com •  2005-‐present: Founder, ChinaContact Special Projects: –  2009 AgentRez, Expedia Aﬃliate Network –  2010-‐2011 Stream, Travel Leaders Technology 4

Overview of the market •  GDP growth 9.2% in 2011, 8.5% (est) in 2012 •  Retail sales up 18% in Dec’11 vs. Dec’10 •  The New Rich –  1 Million Chinese Millionaires (over £1m) •  15 Years Younger on Average than in the West –  60,ooo with Wealth Over £10m –  115 Dollar Billionaires (Forbes) –  520 Million Middle Class by 2025 (McKinsey) •  £1 Trillion Total Disposable Income –  80% of Chinese Luxury Consumers Under 45 •  Compared to 30% in U.S.; 19% in Japan www.ChinaContact.org 5

Spending abroad •  Approx. 80 million Outbound Trips in 2012 –  From 70m in 2011, Spending £45 Billion –  Average 12% Growth Year on Year Since 1999 •  Approx. 60% of Luxury Spend Outside China –  30% of Luxury spend in Hong Kong / Macau –  Duty and Tax Beneﬁts to Foreign Purchases –  In UK, 64% Growth in Chinese Spend in 2011 to £165m –  Approx. £1 Trillion Unreported Wealth •  Spend Outside China is Unaccounted For –  Average Chinese Tourist Spend Approx. £5,200 •  £4,000 on Retail Alone www.ChinaContact.org 6

Where are they from? •  Not a Single Market –  Many Chinas Lie Behind Sta=s=cs •  Deﬁne by Province or Region –  North, East, South & West –  Regional Varia=ons •  East vs. West, North vs. South –  Urban – Rural Divide •  51.3% Urban Popula=on •  Major Income Dispari=es –  Wealth Focused In Eastern, Coastal Ci=es 7

Today’s workshop •  The Chinese digital landscape for travel •  The diﬀerences between social media in China and the West •  Distribu=on channels in China – what are they and how to connect to them? •  Tips for building your brand through digital marke=ng in China www.ChinaContact.org 8

China’s digital landscape www.ChinaContact.org 9

Differences BetweenChina and the West •  Internet development •  Access to informa=on •  Social and Cultural factors •  Economic factors www.ChinaContact.org 10

Distribution Channels in China •  Suppliers •  OTAs •  Whlolesale travel trade •  Retail travel trade •  Flash sales / Group-buy www.ChinaContact.org 11

Online Brand Building •  Branding •  Logo •  Message •  Story www.ChinaContact.org 12

Strategies for market entry •  Business setup •  Public rela=ons strategy •  Marke=ng campaigns •  Distribu=on and access •  Working with the right partners 13

www.chinacontact.org @chinacontact #TDS_China www.ChinaContact.org 14

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China travel online 120418

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