Attracting the asian traveller


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Attracting asian travellers to your resort or hotel. The Ormita Commerce Network brings you customers that you need to fill your off-peak rooms. You use this new revenue to buy products and services that you need. Visit to find out more.

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Attracting the asian traveller

  1. 1. MARKETING FOR FUTURE BUSINESS GROWTH ATTRACTING THE ASIAN TRAVELLER Daniel Evans Chief Executive Officer Ormita Commerce Network © Copyright 2012 – Ormita Commerce Network Limited. All Rights Reserved
  3. 3. MARKETING FOR FUTURE BUSINESS GROWTH The Plain Facts China: • Is the worlds fastest growing economy • Doubles in size approximately every seven years • Will be the largest economy by 2020 • Is the largest country by population • Is the worlds largest lender India: • Is the worlds forth largest economy • Will be the third largest economy by 2020 • Has maintained growth over the past 20 years • Is the second largest country by population
  4. 4. MARKETING FOR FUTURE BUSINESS GROWTH The Future : The Worlds Largest Economies 14.9 tr 14.7 tr 9.9 tr 4.3 tr 4.0 tr 2.2 tr European Union U.S.A China Japan India Russia 30 tr 29.6 tr 28.1 tr 13.4 tr 6.8 tr 4.3 tr European Union China U.S.A India Russia 2010 GDP PPP-adjusted Values in Trillions of USD Source: World Bank 2020 GDP PPP-adjusted Values in Trillions of USD Japan
  5. 5. MARKETING FOR FUTURE BUSINESS GROWTH Biggest Economies in 2020 Source: World Bank
  6. 6. MARKETING FOR FUTURE BUSINESS GROWTH China & India Worlds Fastest Growing Economies -10 -5 0 5 10 15 20 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Australia Canada China India Russian Federation United Kingdom United States European Union GDP GROWTH PER YEAR Real growth rate Values expressed as a percentage Source: World Bank
  7. 7. MARKETING FOR FUTURE BUSINESS GROWTH The Largest Populations in the World 0 200 400 600 800 1000 1200 1400 1600 C hina India Euro A rea U nited S tates Indonesia B razil Pakistan B angladesh N igeria R ussia 2010 POPULATION IN MILLIONS Source: CIA World Fact Book
  9. 9. MARKETING FOR FUTURE BUSINESS GROWTH South Asia The Most Resilient Economies -6 -4 -2 0 2 4 6 8 10 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 East Asia & Pacific European Union Latin America & Caribbean Middle East & North Africa North America South Asia Sub-Saharan Africa GDP GROWTH PER YEAR Real growth rate Values expressed as a percentage Source: World Bank
  10. 10. MARKETING FOR FUTURE BUSINESS GROWTH Global Lenders Vs Global Borrowers China Japan Germany Saudi Arabia Russia Switzerland Netherlands Norway Kuwait Singapore South Africa Romania France Turkey Greece Australia Italy United Kingdom Spain United States -1,000 -800 -600 -400 -200 0 200 400 600 1 BORROWERS LENDERS { } Source: World Bank
  12. 12. MARKETING FOR FUTURE BUSINESS GROWTH 0 50 100 150 200 250 JapanG reeceIceland Italy Singapore B elgium U nited StatesIrelandFrance PortugalEgypt H ungary G erm anyIsrael U nited K ingdomAustria N etherlandsSpainB razilPolandTurkey N orw ay D enm arkM exico C anada South A frica N ew ZealandC hina SaudiArabiaR ussiaEstonia China Source: Cia World Fact Book Asian Travellers Have Less Debt GOVERNMENT DEBT AS A PERCENTAGE OF GDP
  14. 14. MARKETING FOR FUTURE BUSINESS GROWTH Motivation & Needs Chinese & Indian Travellers Travel Motivation • Rising Incomes • Need to travel for business • Travel (especially to Europe) as a status symbol • Curiosity Travel Needs • Safety of a destination • Ease of getting a visa • Other factors: – Natural Scenic Beauty – Well-known landmarks – Friendly local people
  15. 15. MARKETING FOR FUTURE BUSINESS GROWTH Business Travellers Official: • Travel by people employed in government or public service upon invitation of a related organisation in the destination country Business: • Incentive travel, visiting exhibitions and inspections or technical visits Purpose of Travel • Paid by company/bureau • Predominantly company of male colleagues • Convenience and time • Concentrated shopping • Appreciate flexibility and attention to time management
  16. 16. MARKETING FOR FUTURE BUSINESS GROWTH Private Travellers Group: • First time visitors and travel in groups, given the language barriers and unfamiliarity with the destinations. • They belong to the rising middle classes. FITs: • Has a high income and big purchasing power • More likely to speak other languages • Are experienced travellers
  17. 17. MARKETING FOR FUTURE BUSINESS GROWTH Who Are The Travellers ? • Well educated (with tertiary education) • With higher income • Top management of companies and government bureaus • Working professionals and semi-professionals • Small groups on an incentive trip • Tech-savvy and fashionable (interested in cutting-edge gadgets and latest fashions) • 4:2:1 (3 generations – grandparents, parents and single child) • Young (20-39 years old)
  18. 18. MARKETING FOR FUTURE BUSINESS GROWTH Accommodation Preference Source: World Travel Forum 0 5 10 15 20 25 30 35 40 45 50 5 Star Hotels & Resorts 4-Star Hotel 3-Star Hotel 2-Star Hotel Others Chinese Indians
  19. 19. MARKETING FOR FUTURE BUSINESS GROWTH China: Major Travel Generating Regions Northern China (Beijing and Northeast China) – Most of the official travel is from Beijing – Beijingers are engaged in politics and love socialising – Work comes second to friends and family Eastern China (Shanghai and the Coastal Provinces Zhejiang and Jiangsu) – Regions with a history of overseas travel, resulting in relatives abroad – Wealthiest in terms of average income – Shanghainese are trendy and internationally oriented – Very price-driven, shrewd business people who drive hard bargains South China (Guangdong Province and Neighbouring Provinces) – Guangdong benefits from its proximity to Hong Kong as the commercial gateway into China – Its capital city, Guangzhou, is a major trading and commercial centre – Consumer spending is the highest among China’s provinces – People in the south prefer higher standard of services to cheap prices
  20. 20. MARKETING FOR FUTURE BUSINESS GROWTH When Do They Travel? • Outbound mainly for business and official travel, hence not reliant on peak seasons • Private travel is mainly concentrated during the public holidays and school vacations – School vacations take place around Chinese New Year (4 weeks in Jan/Feb) and in summer (July and August) – Preferred destinations are domestic destinations and South East Asia – October is chosen for long haul destinations – 5 to 15 days paid holidays are available since 2008
  21. 21. MARKETING FOR FUTURE BUSINESS GROWTH Travel Preferences • Short Haul to Long Haul: Significant growing interest to ‘less discovered’ European destinations; trips to S.E. Asia, Japan, Korea and Oceania still popular • Group Tour to Independent Travel: More Chinese travellers are able to apply for individual visas (as long as they showcase sound financial and employment status) • Multi-Country Packages to Hybrid Tours: Travellers are interested in in- depth travel rather than multi-country packages. They are keen to return to destinations enjoyed the first time. • The Chinese ‘top priorities’ in life are keeping fit & healthy, professional development and spending time with family & friends. • In terms of holidays, taking domestic holidays is at least ‘quite important’ for 80% and ‘extremely important’ for 9%. Foreign holidays are regarded as at least ‘quite important’ for a smaller proportion (61%) and ‘extremely important’ for 10%.
  22. 22. MARKETING FOR FUTURE BUSINESS GROWTH Chinese Travellers Approved Destination Status (ADS) • Approved Destination Status (ADS) Policy is a bilateral government agreement defining the arrangement between the Chinese Government and a foreign destination whereby Chinese tourists are permitted to undertake leisure travel in groups to that destination. Business and official travel to overseas destinations are not included. • Was first introduced in the early nineties for destinations in Southeast Asia such as Singapore, Thailand and Malaysia. • Countries without an ADS agreement are not allowed to receive tourism groups from China or to promote their destination in China for tourism and are restricted to business and official travel groups only. • More than135 different countries and territories have been granted ADS. The EU Member States, Switzerland, Norway, Iceland, USA, Canada, Australia and New Zealand are some of the major countries with ADS agreement.
  23. 23. MARKETING FOR FUTURE BUSINESS GROWTH Travel Information Sources 0 10 20 30 40 50 60 70 80 D estination W ebsites TravelAgencies A dvertising atB orders /A irports N ew spapers /M agazines TravelBooks R ecom m endation from O thers B illboards & Prom otionalS igns TV/R adio China India Source: World Travel Forum