Travel Distribution Summit Asia Roy Graff Managing Director, ChinaContact How the Chinese Outbound Travel Market is changing Who are the new Chinese visitors? Effective sales and marketing strategies to attract Chinese Which products and services appeal to the Chinese traveller? What reliable information sources for this market exist?

Who are the new Chinese visitors?

Effective sales and marketing strategies to attract Chinese

Which products and services appeal to the Chinese traveller?

What reliable information sources for this market exist?

Speaker Introduction 2005 to present: ChinaContact Managing Director 2006: Conference Director, WTM-ChinaContact conference ‘ China-the future of Travel ’ 2004-2005: China Country Manager, Octopustravel.com 2003-2004: China E-Commerce Director 2002-2003: China Senior Business Development Manager, Gullivers Travel Associates Three years of business development, marketing and PR experience in China Twelve years tourism industry experience Fluent in Mandarin Chinese BA in Chinese & Economics

2005 to present: ChinaContact Managing Director

2006: Conference Director, WTM-ChinaContact conference ‘ China-the future of Travel ’

2004-2005: China Country Manager, Octopustravel.com

2003-2004: China E-Commerce Director

2002-2003: China Senior Business Development Manager, Gullivers Travel Associates

Three years of business development, marketing and PR experience in China

Twelve years tourism industry experience

Fluent in Mandarin Chinese

BA in Chinese & Economics

B) Statistical overview 2005 Chinese Outbound Travel Destinations Zhang Qing/Byecity.com 2006 : 34 million outbound travellers Market Value : 17 Billion Dollars (?)

2005

Chinese Outbound

Travel Destinations

Business Paid by company/bureau Predominantly company of male colleagues Convenience and time Concentrated shopping Appreciate flexibility and attention to time management Leisure Self financed Small groups of friends or family members More flexibility and interest in attractions Allocate more time for shopping. ADS and other forms of tourism Most high spending still driven by business and delegations

Business

Paid by company/bureau

Predominantly company of male colleagues

Convenience and time

Concentrated shopping

Appreciate flexibility and attention to time management

Leisure

Self financed

Small groups of friends or family members

More flexibility and interest in attractions

Allocate more time for shopping.

The nature of the Chinese traveller Who? Small groups on an incentive trip Top management of companies and government bureaus ‘ internationalised’ Chinese 4:2:1 (3 generations)

Who?

Small groups on an incentive trip

Top management of companies and government bureaus

‘ internationalised’ Chinese

4:2:1 (3 generations)

Middle and high income White collar annual income: USD $25k on average Established pattern of business trips combined with leisure holidays Increased awareness of luxury destinations Desire to ‘outclass’ others Prefer convenience and access to range of activities

Middle and high income

White collar annual income: USD $25k on average

Established pattern of business trips combined with leisure holidays

Increased awareness of luxury destinations

Desire to ‘outclass’ others

Prefer convenience and access to range of activities

Where from? South China Eastern seaboard North East Western China Beijing & Dongbei Shanghai & Huadong Guangzhou & Huanan Xinan & Xibei

Where from?

South China

Eastern seaboard

North East

Western China

Outbound travel decision making process Destination Near -> Far Visa access Recommendations Marketing

Destination

Near -> Far

Visa access

Recommendations

Marketing

Popular destinations (ADS) Most popular destinations for Chinese Reasons: politics, time, cost, cultural affinity, language, food Top aspirational destinations Reasons: status, novelty, culture, business needs, shopping Hong Kong, Macau, Japan, Korea, Thailand, Vietnam, Russia, USA, Singapore, Australia, Malaysia France, Switzerland, USA, UK, Australia, Germany, Canada, Italy

Most popular destinations for Chinese

Reasons: politics, time, cost, cultural affinity, language, food

Top aspirational destinations

Reasons: status, novelty, culture, business needs, shopping

Popular activities The ‘traditional’ activities The break with tradition Political change Change in Attitude Economic advancement Demographic shift

The ‘traditional’ activities

The break with tradition

Political change

Change in Attitude

Economic advancement

Demographic shift

These changes now lead to change in activity types: More family oriented activities Variety of shopping and increased sophistication Children’s pastimes Cultural emphasis – ‘deep impact’ sightseeing Development of short break holidays in Asia

These changes now lead to change in activity types:

More family oriented activities

Variety of shopping and increased sophistication

Children’s pastimes

Cultural emphasis – ‘deep impact’ sightseeing

Development of short break holidays in Asia

Future Trends South East Asia will grow as a market for FIT Taiwan: ‘reverse’ cultural colonialism Thailand/Singapore/Malaysia: golf, sailing, gaming, shopping (short excursions) Europe will become fashionable (+Weather impact) USA/Canada will become popular once ADS is signed (depends on visa procedures) Theme tours to become popular – niche markets emerging.

South East Asia will grow as a market for FIT

Taiwan: ‘reverse’ cultural colonialism

Thailand/Singapore/Malaysia: golf, sailing, gaming, shopping (short excursions)

Europe will become fashionable (+Weather impact)

USA/Canada will become popular once ADS is signed (depends on visa procedures)

Theme tours to become popular – niche markets emerging.

Why localisation? Language differences in Greater China Lack of confidence in foreign languages Chinese search engines Trust in local presence Customer feels important

Language differences in Greater China

Lack of confidence in foreign languages

Chinese search engines

Trust in local presence

Customer feels important

Localisation pointers Language Information offered in Chinese Website Customer service Keeping in touch

Language

Information offered in Chinese

Website

Customer service

Keeping in touch

Direct Sales Direct Sales B2B: The tour operators and travel agents B2C: travelling public Internet Marketing The Great Firewall of China Hosting packages Email marketing Local Represetation Selecting a local partner Monitoring performance

Direct Sales

B2B: The tour operators and travel agents

B2C: travelling public

Internet Marketing

The Great Firewall of China

Hosting packages

Email marketing

Local Represetation

Selecting a local partner

Monitoring performance

Satisfying a Chinese client Attention to personal details Understanding cultural sensitivities Knowing your Hans from your Hui Knowing of regional differences Being flexible - adaptable to changes in plan Chinese language information Exceeding expectations

Attention to personal details

Understanding cultural sensitivities

Knowing your Hans from your Hui

Knowing of regional differences

Being flexible - adaptable to changes in plan

Chinese language information

Exceeding expectations

Information sources about the China Outbound Travel market China Contact website www.ccontact.com/resources.htm China…the future of Travel conference on bilateral tourism with China www.future-of-travel.org China Outbound Project www.china-outbound.com China Business Services www.chinabusinessservices.com

China Contact website

www.ccontact.com/resources.htm

China…the future of Travel conference on bilateral tourism with China

www.future-of-travel.org

China Outbound Project

www.china-outbound.com

China Business Services

www.chinabusinessservices.com

The China Outbound Travel Handbook “ EXCELLENT NEW HANDBOOK OFFERS KEYS TO CHINESE MARKET “ Bruce Taylor, BBT Online, Belgium “ (The China Outbound Travel Handbook) will tell you which Chinese are travelling abroad, how to reach them, how the travel industry is organised, and how to show your hospitality to Chinese visitors... the handbook will prove to be an accessible and valuable resource." CBBC China-Britain Business Review " what a reservoir of info and statistics. " R. Seth, Travel writer, India www.ccontact.com/handbook.htm

Contact Us: London, UK Email: info@ccontact.com Tel: +44 20 78719886 Mobile: +44 7821 093199 www.china-contact.cn Consultancy service: market access, marketing strategy, public relations, government relations, deal brokering Localisation: tourism marketing materials, websites, press releases Event management: exhibitions, product launches, trade fairs, business trips Representation: local sales and marketing representatives

Consultancy service: market access, marketing strategy, public relations, government relations, deal brokering

Localisation: tourism marketing materials, websites, press releases

Event management: exhibitions, product launches, trade fairs, business trips

Representation: local sales and marketing representatives