Sinocetrica services and Chinese outbound travel market presentation

1. Destinations presentation

2. Why China?
OT – Outbound Tourists
Figures are for the first half of 2014
*According to the China Tourism Academy

3. Local market Trends
 Shift to online – 7.7% of whole travel market
 Travel patterns diversify (more in-depth, self guided and high end travel)
 Visa procedures are being streamlined, currency appreciation, rising incomes
Global market Trends
 Competition on a global flat market, where tourists are travelling more and
more to (previous) remote destinations
 Focus on the “cultural development” of the consumer
 At European level: rising visits to CEE and EE countries

4. Chinese outbound tourists - profile
 50% come from first tier cities ( Beijing, Shanghai and nearby coastal
provinces, Guangzhou) – different markets (all have high mobile penetration)
 Top tourist destinations (long haul): Paris, London, Rome, Berlin, Washington,
LA, etc. The typical tourist: male, 25-35 years old, monthly income above
15,000 yuan (over 2000$) – group travelers tend to earn less
In general
Monthly income – 11,512 yuan (around 1800$), family
income – 20,000 yuan (~3000$) /month
This is 3xaverage urban income/month in a second
tier city (not Beijing, Shanghai, Guangzhou)

5. Chinese outbound tourists in Europe - profile
 Tourists to Europe tend to be frequent travelers (several outbound trips/year)
 87.54% choose travel agencies for services (for some countries tourist visas
must be obtained through tourist agencies)
 37% travel in groups (over 46, never/once abroad, earn less than 8,000 yuan),
32% independent (frequent trips, earn more than 10,000 yuan), 19% semi-independent
tours (preferred by tourists between 26-35 y)
Most of the travel budget goes to shopping (especially for the
high income group)
Ex. Average expenditure in France 1900$
Interested in luxury goods, souvenirs (gifts, for own use) –
most of them of high-quality/price (a shift off label-brands to
more “exclusive” products)
Group travel focused on sightseeing, and less on shopping
Europe is also an important market for young post 80s women
– second favorite eloping destination (after Maldives)
1 元 = 0.16 $
October 2014

6. What should destinations realize?
 That some service and information availability (in Chinese) needs to be
provided
 The planning process is going online – destinations need to be there, with all
necessary relevant information localized
 From young independent travelers to post-60 group tourists sent by their
children or spending their retirement, traveling is about status
 This means young people are looking for high quality products and cultural
experiences. Being able to share them through CN social media should be an
important concern for destinations. They buy products for themselves and for
friends and families back home (daigou market – buying on behalf of a friend
presents considerable retail opportunities)
 It also means positive word of mouth can go a long way – not only do travelers
ask their friends/relatives when starting the process, they will talk about
their travels and share their purchases (luxury, souvenirs, local items) and
experiences – view next slide

7. Source: Hakuhodo Institute of Life and Living Shanghai,Campaign Asia Pacific – China
Innovation edition

8. Chinese outbound tourists – expectations and
problems
 Language/cultural barriers are the main problem (considering impact on
safety)
 Attraction towards European destinations is built on their long history, unique
cultures, cozy environments, landmark buildings, abundant museums, etc.
 Visa streamlining, direct flights important attraction policies, along with
special tourist routes: considering future migration, study
 Food: restaurants to have Chinese language menus or the waiters to speak
Chinese/English (other problems: no UnionPay POS, no wifi for sharing
experiences)
 Accommodation: no Chinese language signs, no Chinese language channels
 Transport: no Chinese language indicators
 Tours: no Chinese language signs/indicators, tour guides
 Shopping: duty free shops, large sized department stores, brand franchise
stores (1,700 dollars on shopping on average – over 50% on credit cards, lack
on UnionPay, Alipay POS restricts purchases), no Chinese language services

9.  The main channels of information outside China: foreign tourism websites,
promotional activities organized by the city
“Top two information channels that Chinese
outbound tourists wish outbound tourist cities
to create are official Chinese language sites,
official Weibo and Wechat accounts (social
media)”
618 m people online
81% access the internet via mobile handsets, instant
messaging is the most popular online activity (most popular
client Weixin/Wechat has 400 m active users/month)
Group buying is the fastest-growing online activity,
followed by travel booking, online shopping and online
payments

10. Coming to a country near you?
 Pre visit research implies a large amount of information
– for Europe – transport, local customs and practices,
security
In this case 1 page Baidu search
1. Baidu travel journal (online travel guides)
2. Mafengwo travel guide
3. Baidu forum (travel to RO related questions)
4. Baidu library
5. Baidu Images
6. 51766.com travel guide
7. Qunar ad (travel booking site)
8. Qyer.com (travel guide)
9. Kuxun.com (travel guide)
Only local/user generated content
In most cases, the search and booking process is done
online (home/mobile)

11. This is where we come in

12. Market research and planning
 We provide destinations/public authorities with clear marketing strategies
and communications plans by focusing on a coherent destination image that
understands Chinese perceptions and cultural background
 We also develop market/consumer studies/research/insights to know what
makes you worth the trip
 We build marketing campaigns –promotional activities, tourist routes, setting
up cooperation with Chinese travel agencies and other interested
stakeholders, promote tour routes
 Develop new ways of representation/action on the Chinese social media in
order to make information easily available
 Also: Chinese language communication strategies and tools for destinations
(boards, tour leaflets, maps, cultural reminders, handbooks, etc. )

13. Strategy implementation and
product/destination development
 Build travel information platforms in order to provide for Chinese language
information channels (online .cn, Weibo, Weixin, etc. )
 Implement plans for active engagement on important social media channels
(Weibo, Wechat/Weixin) – promotions, travel info, cultural info, regulations,
safety.
 Organize events, online promotions (including SEM/SEO), implement
marketing strategy campaigns on all channels, participating at Chinese
tourism fairs, etc.

14. Monitoring
 Tourist arrivals monitoring/research
 Marketing campaign tracking and reporting, including Chinese social media
tracking and other O2O campaigns

15. Contact:
bogdan.ditoiu@sinocentrica.com