Reaching the Chinese Traveller Online

Reaching the Chinese Traveller Online
Essential B2C digital tools for the Chinese outbound tourism market
Roy Graff | EyeforTravel TDS Europe, June 2018

2 | WWW.DRAGONTRAIL.COM © 2018
Dragon Trail Interactive
Dragon Trail Interactive is an award-winning digital marketing and solutions agency for
the travel industry that helps travel and tourism organizations reach and engage with
affluent Chinese consumers and the travel trade through outstanding digital initiatives.
The company is 100% focused on the global travel industry, 100% focused on
marketing to affluent Chinese consumers and 100% focused on leveraging digital
solutions to reach client goals. In addition to providing integrated consumer marketing
services, Dragon Trail continuously develops proprietary technology applications and
platforms through its team of in-house engineers, including B2B travel marketing
platforms for mobile channels.
We are proud to work with major international brands, such as Destination Canada,
Los Angeles Tourism and Convention Board, PromPeru, Visit Florida, Hertz, Norwegian
Cruise Line, Leading Hotels of the World, Air Canada and Sydney Opera House.

About the Speaker
Roy Graff has over 20 years of experience working in and
with China in the tourism, hospitality, luxury retail and
digital marketing sectors. He is the author of the book
China, the Future of Travel and frequently speaks at
leading travel and tourism conferences. Roy has provided
strategic advice to organizations including Skyscanner,
VisitBritain, PromPeru, Eurostar, and Peninsula Hotels and
Resorts, among many others. In the early 2000s he headed
Gullivers Travel Associates’ development of the
independent travel business in China in the early days of
Chinese outbound tourism.
Roy Graff
Managing Director - EMEA

Rise of the Chinese Independent Traveller
Large group travel is waning. FITs (free independent travellers) now make up 20-40% of the outbound travel market.
FIT is most popular with affluent, younger travellers from 1st and 2nd tier cities.
FITs and SITs are even more likely than group travellers to use digital tools to help plan the details of their travel
experience, especially once they reach their destination.

A Journey to Europe, the Chinese Way

Inspiration Phase: WeChat Moments
Our traveller, Ms. Zhou, sees posts
shared by a friend of a self-driving trip
around Europe on WeChat Moments.
• WeChat is China’s most popular mobile
app, with nearly 1 billion active users.
• 60% of WeChat users check Moments
every time they open the app.
• As of 2016, one third of WeChat users
spent 4+ hours a day on the app.
• 47% of HNWI millennial travellers get
their travel information from their friends’
WeChat Moments.

Inspiration Phase: Weibo
On Weibo, Ms. Zhou sees more posts
about travelling in Europe shared by
KOLs and popular accounts.
• After years of decline, microblogging
platform Sina Weibo made a
comeback in 2017.
• In May 2018, Weibo announced a year-
on-year increase of 70 million monthly
active users, for a total of 411 MAU, as
well as a 111% rise in profits.
The Fengjing Jingxuan aka
“Best Views” account has
3 million Weibo followers
TV presenter and travel
blogger Wang Mengyun
has 46,000 Weibo followers

Inspiration Phase: Video
As of June 2017, there were 565 million
online video users in China.
2 billion videos are watched daily on
Weibo, and Weibo’s live streaming and
short video platforms are what catalysed its
comeback.
Video platforms in China include long-form
(Tencent Video, iQiyi, Youku), short-form
(Kuaishou, Miaopai, Meipai) and live
streaming (YY, Yingke, Yizhibo) video. All
can be used effectively by travel brands.
User-posted video from
Switzerland, posted on
Weibo via Miaopai
Visit Kenya’s video was
WeChat’s most-viewed
NTO post of Q1 2018

Research Phase: WeChat
Ms. Zhou follows a few official
accounts on WeChat to learn more
about potential destinations, and
discovers the Switzerland Tourism
account.
• Around 80% of WeChat users follow
official accounts on the app.
• 48% of HNWI Chinese millennials
primarily receive travel information
through WeChat subscription
accounts.

Research Phase: Travel Websites
Chinese travel review websites Mafengwo
and Qyer are popular resources for both
user generated and professionally created
content. 60% of users for both platforms
are Chinese millennials, who mainly travel
as FITs.
Both sites have travel guides, apps, and
also act as OTAs. Users can read about
and review attractions, and download
professionally written Chinese-language
guidebooks.

Research & Inspiration: KOLs
Mafengwo and Qyer allow users to upload
travel diaries and photos, and these websites
also host officially verified travel bloggers.
Qyer’s top-rated user, Luca_luo has over
2,000 followers on the platform, and her post
on a trip to Germany received 26,766 views.
She includes day-by-day itineraries, with an
instant booking button next to the hotels
where she stayed.
Ctrip also offers KOL promotion as one paid-
for marketing solution for destinations and
travel brands.

Booking Phase: Flights
94% of Chinese travellers visit price-
comparison websites when planning
their travel. They may use an OTA like
Ctrip, or Tongcheng, which is built into
WeChat.
Users can book flights directly through
WeChat service accounts for airlines.
KLM’s account allows users to
research and book flights, check in
and generate a digital boarding pass,
and interact with customer service.

Booking Phase: Hotels
WeChat users can search for and
book hotels directly through OTA
Elong.
Ctrip’s China Preferred Hotel status is
given to hotels that accept UnionPay
and Chinese mobile payment, offer
Chinese breakfast, tea, and electric
kettles, Chinese-language signage,
in-room information and customer
service, and free Wi-Fi. These hotels
are marked with a special symbol on
Ctrip’s listings.

Booking Phase: Car Rental
Self-driving travel is an emerging trend
for Chinese tourism, especially to the
US, Australia and Europe.
Chinese car rental company Zuzuche
offers driving license translation
services, guides to driving rules in
many different countries, including
Switzerland, suggested routes and
itineraries, and rental car booking
– all through their WeChat account.

Booking Phase: KanKan Talk
The future of online travel booking is a new generation
of messaging-based tools that help travel companies to
deliver more personalised service.
Dragon Trail’s new WeChat-based messaging platform,
KanKan Talk, arms agents with AI-assisted chatbot
technology to offer personalised recommendations
and service.
KanKan Talk has potential for hotels, cruise lines, airlines,
car rental agencies and tour operators. Its specialized
interface works particularly well for making bookings
and sales, and for providing customer service to clients.
Customer agent interface + multi-chat management

Shopping and Mobile Payments
At the airport on her way to Zurich, Ms. Zhou buys
cosmetics at the Duty Free shop, using WeChat Pay.
Chinese tourists are by far the world’s top overseas
spenders and Duty Free shoppers.
Mobile payments in China reached US$9 trillion in
2016. The market is dominated by Alipay and WeChat
Pay. As these two platforms compete, the battle is
becoming increasingly international.

Why Accept Chinese Mobile Payments?
More willing to spend
Yes No
(Nielsen 2018)
91%
In a recent survey, 91% of Chinese
overseas travellers said they were more
willing to spend if Chinese mobile
payments were accepted.
Anecdotally, Chinese tourists make
quicker spending decisions and spend
more when they know they can use
mobile payments.

Shopping and Mobile Payments: Where?
(Nielsen 2018)
47%
48%
52%
58%
62%
63%
0% 10% 20% 30% 40% 50% 60% 70%
Recreation
Transportation
Accommodation
Attractions
Dining
Shopping
Use of Mobile Payments Overseas
Top shopping items include
skincare, souvenirs, clothing
and accessories
Dining includes restaurants,
fast food, cafes and even
street food
Recreation comprises
performance tickets, spas,
sporting events and bars

Shopping and Mobile Payments: Potential for Europe
During the 2018 May Day holiday,
Asian countries had the largest
transaction volume of Alipay
payments outside China, but
European countries welcomed
the bigger spenders.

In-destination Information: WeChat Mini-Program
When Ms. Zhou arrives in Zurich, she uses the
WeChat mini-program from Zurich Tourism to
guide her visit.
The Zurich mini-program offers Chinese
listings for shopping, restaurants, hotels and
attractions. Users can share venue
information with WeChat contacts and
create a personalized itinerary.
Other applications for tourism include:
bookings; concierge services; check-in
services and more.

In-destination Information: Ctrip’s VTM
Another option for an in-destination digital
guide is Ctrip’s virtual team manager (VTM)
service, which provides in-destination
shopping, sightseeing and emergency
information to users.
It is available in 150 countries and 800
destinations. It was used by 10 million
travellers in 2017, 10% of Ctrip FITs.
Automated chat supported by 8,000 local
guides and Chinese SOS hotline.
Social component: Users can share photos
and tips, join chat groups and meet up.

Sharing the Experience
During and after her trip, Ms. Zhou posts
photos on WeChat Moments, inspiring
other friends to visit Europe.
Chinese millennials love
to share their travel
experiences online, usually
through WeChat. Other
platforms include Weibo,
photo-sharing app Nice,
and travel review websites.
Destinations, businesses and
attractions can encourage
and leverage word of mouth
advertising by providing free
Wi-Fi and offering incentives
for reviews.

First Steps for Chinese Marketing
Research: What are Chinese tourists are saying about you on travel review sites. Where do you rank on Baidu?
Digital presence: Sign up for WeChat and Weibo. Create a Chinese-language, Chinese-hosted website.
Service localization: Amenities, Chinese-language service, mobile payment, etc.
Find more information at www.dragontrail.com

Learn More
Visit www.dragontrail.com for
information on the latest trends in
Chinese outbound travel and digital
marketing, watch the China
Outbound Travel Pulse video series,
sign up for our monthly webinar and
newsletter, follow our weekly WeChat
rankings and more.
You can also follow us on LinkedIn,
Twitter and Facebook.

Mr Roy Graff
Managing Director - EMEA
Tell: +44 (0)20 3289 8915 | M +44 (0)75 3277 6288
Email: roy.graff@dragontrail.com
Website: www.dragontrail.com
www.twitter.com/dragontrail
www.linkedin.com/company/dragon-trail
HelloDragonTrail

Reaching the Chinese Traveller Online

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