Travel Distribution Summit Europe - China online travel distribution and marketing
Travel Distribution Summit Europe
London - 19 May 2009
China Online Travel
Distribution and Marketing
Roy Graff
ChinaContact
www.chinacontact.org

Travel Distribution Summit Europe - China online travel distribution and marketing
Roy Graff
 Expertise on China business and culture, speaks fluent Mandarin.
 Lived for 3 years in Beijing and Shanghai, travelled extensively to China's
major cities, forging good personal relationships with key private industry
leaders and public officials.
 Served as China Director of E-commerce for Gullivers Travel Associates,
overseeing all aspects of the company's electronic product distribution in
China. Later served as China Octopustravel.com Country Manager.
 Consultant on China to tourism promotion bodies, hotel chains, online
companies and tour operators.
 Facilitating investment in hotel sector, online travel and e-commerce
business with Chinese partners.

Travel Distribution Summit Europe - China online travel distribution and marketing
Growth in outbound tourism from China

Travel Distribution Summit Europe - China online travel distribution and marketing
Online penetration
• Broadband infrastructure in
all major cities c
• Travel trade penetration
good.
• Consumer penetration
rising fast (80% increase)
& now overtaken USA
• Baidu main search engine
in China, not google
• Finance system still limiting
e-commerce
• Regulation restricts foreign
companies

Travel Distribution Summit Europe - China online travel distribution and marketing
Online information sources are vital
where do you get your travel advice?
Destination websites 69
Travel agencies 63
Online travel forum 59
Free books/pamphlets at borders/airports 44
Newspaper/magazines 40
Travel agencies' websites 40
Purchased travel books/pamphlets 34
Recommendation from others 32
Promotional posters at destination 28
TV/Radio 27
Tour guides 22
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Travel Distribution Summit Europe - China online travel distribution and marketing
Booking online is becoming more important
Where do you you book your travel?
Travel agent 61
Online travel agent 29
Websites of hotel and transportation 16
Friends/relatives in destination 13
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Travel Distribution Summit Europe - China online travel distribution and marketing
Key issues of online travel development in China
• Leading brands enhancing trust in online travel booking (Ctrip, eLong)‫‏‬
• Consumer market not ready for pure online booking model (over 80% of transactions
offline)
• Disjointed banking system and fear of fraud deter online payments
• Worries about online booking misused for visa applications
• Customers want physical presence even from an online operator
• Ctrip continue to dominate domestic market
• Qunar.com now number 1 travel site in visitor numbers.
• DerbySoft, Hubs1 pushing for increased connectivity of hotels and agents
• TravelSky still a GDS monopoly

Travel Distribution Summit Europe - China online travel distribution and marketing
Successful Online Travel Distribution in China
• Overcome these barriers to entry
– Market size: Pure online market limited to young, urban web-surfing
professionals
– Flexibility: Need to build into system multiple payment options and flexible
service solutions.
– Branding: Establish a presence early and wait for the growth in e-commerce
– Niche: Focus on the products/markets where e-commerce is a reality – B2B, low
cost and last minute inventory.
– Compatibility: localised systems with acceptable design interface.
8

Travel Distribution Summit Europe - China online travel distribution and marketing
Examples of direct online distribution
• Lostrip.com
• Ctrip
• eLong
• ByeCity
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Travel Distribution Summit Europe - China online travel distribution and marketing

Travel Distribution Summit Europe - China online travel distribution and marketing

Travel Distribution Summit Europe - China online travel distribution and marketing

Travel Distribution Summit Europe - China online travel distribution and marketing

Travel Distribution Summit Europe - China online travel distribution and marketing

Travel Distribution Summit Europe - China online travel distribution and marketing

Travel Distribution Summit Europe - China online travel distribution and marketing
Direct online distribution - social network sites
16

Travel Distribution Summit Europe - China online travel distribution and marketing
Online Marketing
• Design concepts: difference in design sensibility
• The Great Firewall of China: server hosting and self censorship
• Travel media: e-marketing through press release and adverts
• Email marketing: contact databases and parterships
• Advertising on Chinese portals: ppc vrs. space rental
17

Travel Distribution Summit Europe - China online travel distribution and marketing
Traditional Distribution

Travel Distribution Summit Europe - China online travel distribution and marketing
Travel Trade Fairs
• Exhibitions • Conferences
– CITM
– IT&CM China
– BITE
– GITF – IFCOT
– WTF
– Travel Innovation Summit
– COTTM
– CIBTM
– IT&CM China
– ALTM
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Travel Distribution Summit Europe - China online travel distribution and marketing
Localisation Tips
 Language differences in Greater China
(Mandarin/Cantonese/Shanghainese...; Traditional/Simplified)
 Lack of confidence in foreign languages
 Chinese search engines (Baidu, Google.cn)
 Trust in local presence
 Making the customer feel appreciated

Travel Distribution Summit Europe - China online travel distribution and marketing
Networking in China
Trust Harmony
GuanXi
Face Reciprocity
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Travel Distribution Summit Europe - China online travel distribution and marketing
Market entry steps
• Review and audit your services
• Adjust and prepare suitable products
• Localise your information
• Launch and promote through the trade
• Build relationships over time
• Follow through on promises

Travel Distribution Summit Europe - China online travel distribution and marketing
Sources of information for the China travel market
• ChinaContact website www.chinacontact.org
• China Travel Industry News Blog http://news.future-of-travel.org
• ChinaContact Tourism Advice Network http://chinacontacttourism.ning.com
• the China Outbound Travel Handbook
• China Outbound Tourism Research Institute www.china-outbound.com
• LinkedIn Group
• Twitter @chinacontact, @cctn, @ChinaAdvisorsUK

Travel Distribution Summit Europe - China online travel distribution and marketing
ChinaContact website
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Travel Distribution Summit Europe - China online travel distribution and marketing
ChinaContact website
25

Travel Distribution Summit Europe - China online travel distribution and marketing
ChinaContact website
26

Travel Distribution Summit Europe - China online travel distribution and marketing
ChinaContact website
27

Travel Distribution Summit Europe - China online travel distribution and marketing
China Outbound Travel Handbook
28

Travel Distribution Summit Europe - China online travel distribution and marketing
ChinaContact Tourism Network
29

Travel Distribution Summit Europe - China online travel distribution and marketing
www.chinacontact.org
Email: info@chinacontact.org Consultancy service:
Tel: +44 20 32399688 ➡ Market access, marketing strategy,
Mobile: +44 7821 093199 public relations, deal brokering
Twitter: @chinacontact
Localisation:
Skype: ccontact88
➡ Tourism marketing materials,
websites, press releases
network.chinacontact.org Event management:
➡ Exhibitions, product launches, trade
linkedin.com/in/roygraff
fairs, business trips
xing.com/profile/Roy_Graff Representation:
twitter.com/chinacontact ➡ China sales and marketing
www.china-advisers-network.com representatives