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

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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