The document discusses online travel in China, which is growing three times as fast as the total travel market. By 2012, close to 25% of travel in China will be booked online, up from just 5% five years ago. This year, 80 million Chinese will travel abroad, increasing to 100 million by 2015. It provides an overview of China's growing middle class and new wealthy class, their spending habits abroad including an average of $5,200 spent per tourist, and differences between regions in China. The workshop covered China's digital landscape for travel, differences between social media in China and the West, distribution channels, and strategies for brands to build an online presence and enter the Chinese market.

1. www.chinacontact.org
@chinacontact
#TDS_China
www.ChinaContact.org 1

2. Online Travel in China
China
has
over
500
million
internet
users.
Sina
Weibo,
the
popular
microblog
has
over
300
million
subscribers.
Online
travel
in
China
is
growing
three
=mes
as
fast
as
the
total
market
and
taking
market
share
at
a
faster
rate
than
in
the
West.
In
2012,
close
to
25%
of
travel
will
be
booked
online
in
China,
up
from
just
5%
5
years
ago.
This
year,
80
million
Chinese
will
travel
abroad,
increasing
to
100
million
by
2015.
What
are
you
doing
to
capture
the
aIen=on
of
the
internet
savvy
Chinese
traveller?
Do
you
have
a
distribu=on
strategy
for
China
at
the
ready?
Roy Graff, ChinaContact
18 April 2012

3. About ChinaContact
• Bou=que
China
market
entry
specialist
for
the
tourism,
hospitality
and
internet
sectors
• Strategic
consulta=on
and
mentoring
for
market
entry
and
brand
development
• Direct
access
to
China’s
travel
trade
network
via
offline
and
online
distribu=on
and
marke=ng
• Social
media
engagement
and
marke=ng
3

4. Roy’s background
• 1992:
First
China
visit
• 1996:
Israel
tourism
office
representa=ve
in
Taiwan
• 1998:
Graduated
from
SOAS
with
BA
in
Chinese
&
Economics
• 1997-­‐2000:
gta
-­‐
Worked
with
Chinese
outbound
tour
groups
• 2000-­‐2002:
Independent
travel
business
development
for
gta
• 2002-­‐2003:
Independent
travel
division
area
manager-­‐China,
gta
• 2003-­‐2005:
Greater
China
E-­‐commerce
Director,
gta
Country
Manager,
Octopustravel.com
• 2005-­‐present:
Founder,
ChinaContact
Special
Projects:
– 2009
AgentRez,
Expedia
Affiliate
Network
– 2010-­‐2011
Stream,
Travel
Leaders
Technology
4

5. Overview of the market
• GDP
growth
9.2%
in
2011,
8.5%
(est)
in
2012
• Retail
sales
up
18%
in
Dec’11
vs.
Dec’10
• The
New
Rich
– 1
Million
Chinese
Millionaires
(over
£1m)
• 15
Years
Younger
on
Average
than
in
the
West
– 60,ooo
with
Wealth
Over
£10m
– 115
Dollar
Billionaires
(Forbes)
– 520
Million
Middle
Class
by
2025
(McKinsey)
• £1
Trillion
Total
Disposable
Income
– 80%
of
Chinese
Luxury
Consumers
Under
45
• Compared
to
30%
in
U.S.;
19%
in
Japan
www.ChinaContact.org 5

6. Spending abroad
• Approx.
80
million
Outbound
Trips
in
2012
– From
70m
in
2011,
Spending
£45
Billion
– Average
12%
Growth
Year
on
Year
Since
1999
• Approx.
60%
of
Luxury
Spend
Outside
China
– 30%
of
Luxury
spend
in
Hong
Kong
/
Macau
– Duty
and
Tax
Benefits
to
Foreign
Purchases
– In
UK,
64%
Growth
in
Chinese
Spend
in
2011
to
£165m
– Approx.
£1
Trillion
Unreported
Wealth
• Spend
Outside
China
is
Unaccounted
For
– Average
Chinese
Tourist
Spend
Approx.
£5,200
• £4,000
on
Retail
Alone
www.ChinaContact.org 6

7. Where are they from?
• Not
a
Single
Market
– Many
Chinas
Lie
Behind
Sta=s=cs
• Define
by
Province
or
Region
– North,
East,
South
&
West
– Regional
Varia=ons
• East
vs.
West,
North
vs.
South
– Urban
–
Rural
Divide
• 51.3%
Urban
Popula=on
• Major
Income
Dispari=es
– Wealth
Focused
In
Eastern,
Coastal
Ci=es
7

8. Today’s workshop
• The
Chinese
digital
landscape
for
travel
• The
differences
between
social
media
in
China
and
the
West
• Distribu=on
channels
in
China
–
what
are
they
and
how
to
connect
to
them?
• Tips
for
building
your
brand
through
digital
marke=ng
in
China
www.ChinaContact.org 8

9. China’s digital landscape
www.ChinaContact.org 9

10. Differences Between
China and the West
• Internet
development
• Access
to
informa=on
• Social
and
Cultural
factors
• Economic
factors
www.ChinaContact.org 10

11. Distribution Channels in China
• Suppliers
• OTAs
• Whlolesale travel trade
• Retail travel trade
• Flash sales / Group-buy
www.ChinaContact.org 11

12. Online Brand Building
• Branding
• Logo
• Message
• Story
www.ChinaContact.org 12

13. Strategies for market entry
• Business
setup
• Public
rela=ons
strategy
• Marke=ng
campaigns
• Distribu=on
and
access
• Working
with
the
right
partners
13

14. www.chinacontact.org
@chinacontact
#TDS_China
www.ChinaContact.org 14