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China travel online 120418
China travel online 120418
China travel online 120418
China travel online 120418
China travel online 120418
China travel online 120418
China travel online 120418
China travel online 120418
China travel online 120418
China travel online 120418
China travel online 120418
China travel online 120418
China travel online 120418
China travel online 120418
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China travel online 120418

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Travel Distribution Summit Europe: China Online Travel workshop 18 April 2012

Travel Distribution Summit Europe: China Online Travel workshop 18 April 2012

Published in: Travel, Technology, Business
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  • 1. www.chinacontact.org @chinacontact #TDS_China www.ChinaContact.org 1
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. China’s digital landscape www.ChinaContact.org 9
  • 10. Differences BetweenChina and the West •  Internet  development   •  Access  to  informa=on   •  Social  and  Cultural  factors   •  Economic  factors   www.ChinaContact.org 10
  • 11. Distribution Channels in China •  Suppliers •  OTAs •  Whlolesale travel trade •  Retail travel trade •  Flash sales / Group-buy www.ChinaContact.org 11
  • 12. Online Brand Building •  Branding   •  Logo   •  Message   •  Story   www.ChinaContact.org 12
  • 13. Strategies for market entry •  Business  setup   •  Public  rela=ons  strategy   •  Marke=ng  campaigns   •  Distribu=on  and  access   •  Working  with  the  right  partners   13
  • 14. www.chinacontact.org @chinacontact #TDS_China www.ChinaContact.org 14

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