Social Media in the Airline Industry
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http://www.merlien.org
Social Media in the Airline Industry
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Presented at Merlien Institute's Qualitative Consumer Research & Insights, 7 & 8 April 2011, Malta
http://www.merlien.org
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2. 2
Introduction3
The Chinese travel revolution 4
The Chinese traveller 5
Hotel hotspots for Chinese travellers 7
Tips for the top service enhancements 9
How hotels are catering to the Chinese traveller 11
About Hotels.com 13
Report disclaimer 14
Contents
3. 3
Introduction
A booming economy, mixed with an exponential
rise in the number of millionaires and a rapidly
expanding middle class, has ignited a desire
amongst the Chinese population to explore, and
the country’s outbound travel market has become
one of the fastest growing in the world. In the
period from 2000 to 2020, the number of Chinese
international travellers will go from 10 million to
well over 100 million1
. Signaling a transformational
change, and opportunity, for the global travel
industry.
As Chinese travellers spread their wings, the global
hotel industry is being forced to sit up, take notice
and adapt to capitalise accordingly. The Chinese
travel population is a priority for large global hotel
chains as well as smaller networks and individual
properties, not just in the world’s major tourist
hubs but also off the beaten tourist track. To cater
specifically to this unique market, the more astute
hoteliers are reinventing their customer offering and
core Chinese services are now not simply “nice-to-
haves” but a “competitive necessity”.
The Hotels.com Chinese International Travel
Monitor (CITM) is the first report of its kind produced
by Hotels.com, the global hotel experts. The main
findings are based on a global survey of more
than 5,000 Hotels.com hotel partners during April/
May 2012. Responses have been sourced from:
Argentina, Australia, Brazil, Denmark, Finland,
France, Germany, Hong Kong, India, Ireland, Italy,
Japan, Korea, Netherlands, New Zealand, Norway,
Russia, Singapore, Spain, Sweden, the UK and
the US.
The report provides a unique viewpoint as to the
rise of the Chinese international traveller, from
the eyes of those working on the ground around
the world. Its aim is to collate feedback from the
industry on the growth of the Chinese outbound
market and how the profile of the average traveller
is changing as the market matures. It highlights
what Chinese guests are requesting and what
changes hoteliers are making to ensure Chinese
travellers feel at home when travelling abroad. It
also pinpoints areas where some hoteliers have
been slow to recognise just what they need to do
to capitalise on the opportunities offered by these
new guests.
Happy reading!
Johan Svanstrom
Vice President Hotels.com APAC
1 Figures sourced from the World Tourism Organization:
http://www.chinadaily.com.cn/china/2011-06/01/content_12624526.htm
4. 4
Spreading their wings
China is on track to overtake Germany and the US
as the world’s largest global outbound tourism
market in the very near future. In 2011, mainland
Chinese travellers made over 70 million international
trips, an increase of 22 per cent on 20101
, according
to the Annual Report of China Outbound Tourism
Development 2012, from the National Tourism
Administration and China Tourism Academy.
Visa relaxation helps spur growth
Although many of these international trips were
to the Chinese Special Administration Regions of
Hong Kong and Macau, significant growth is being
witnessed in Europe and throughout APAC. As a
result, tourism authorities across the world are
responding. From Canada to Cambodia, multi-
million dollar marketing campaigns are being
launched and governments are making it easier
for the Chinese to obtain travel visas. For example,
in 2011 Japan relaxed its visa requirements following
the country’s devastating earthquake and nuclear
disaster. Spain followed in May 2012, after the
number of Chinese tourists rose 25 per cent,
from 128,454 in 20102
.
Big spenders
It comes as no surprise, therefore, that China’s
expenditure on international tourism increased by
US$ 18 billion to US$ 73 billion in 20113
, according
to the latest UNWTO World Tourism Barometer.
Supporting these figures, the CITM found the
majority of hoteliers surveyed had seen a significant
increase in Chinese visitors between 2009 and 2011.
The Chinese travel revolution
Future growth
Experts are equally optimistic about the future
suggesting outbound Chinese demand is still in
its infancy. The Annual Report of China Outbound
Tourism Development 2012 predicts the number of
international trips taken by Chinese travellers will
increase by 12 per cent in 2012 to 78 million4
. Boston
Consulting Group has stated that, by 2020, the
Chinese outbound market will be valued at
US$590 billion5
.
New airports fuel expansion
Presently, most outbound travel comes from China’s
three major cities – Shanghai, Beijing and Guangzhou
– but, as scores of airports are being built in regional
areas to cater for soaring demand, the number of
Chinese travelling abroad will continue to increase.
The Secretary-General of the United Nations
World Tourism Organisation, Taleb Rifai, recently
commented: “We can expect to see China become
the number one country in terms of both receiving
and sending tourists in the next five to seven years.”6
Hoteliers confident
When asked about predictions for growth in Chinese
visitors over the next three years, hoteliers were
equally confident. On average, one in five (22 per cent)
expects to see an increase of more than
40 per cent. Almost 20 per cent in the APAC region
anticipate a rise of more than 40 per cent in Chinese
guests. In the US, the predicted growth was more
modest at 10 per cent, though the US is positioning
itself as a luxury shopping destination in a bid to woo
Chinese travellers.
1 Dingding, Xin (16 April 2012) More travellers from Chinese mainland going overseas. The China Post Retrieved: 29 May 2012 from
http://www.chinapost.com.tw/china/china-business/2012/04/16/337958/More-travelers.htm
2 Ing, David (18 May 2012) Spain eases visa red tape for Chinese tourists. TTG Asia. Retrieved: 29 May 2012 from
http://www.ttgasia.com/article.php?article_id=3624
3 United Nations World Tourism Organisation, “UNWTO World Tourism Barometer” (March 2012) Retrieved: 30 May 2012 from http://mkt.unwto.org/en/barometer
4 Dingding, Xin (16 April 2012) More travellers from Chinese mainland going overseas. The China Post Retrieved: 29 May 2012 from
http://www.chinapost.com.tw/china/china-business/2012/04/16/337958/More-travelers.htm
5 Boston Consulting Group 2011, China’s Emerging Travel Sector Is Rocketing, but a New BCG Study Finds Dissatisfied Travelers at Home and Abroad, media
release, accessed 29 June 2012, http://www.bcg.com/media/PressReleaseDetails.aspx?id=tcm:12-74602
6 Palash R. Ghosh (1 May 2012) China’s Outbound Tourist Boom: A Bonanza For Neighboring East Asia Economies International Business Times. Retrieved: 25 May
2012 from http://www.ibtimes.com/articles/335647/20120501/china-outbound-tourism-cash-upper-class-hong.htm
5. 5
The Chinese traveller
Changing profile
The profile of the typical Chinese traveller has
changed considerably over the past decade due
to the country’s robust economy, appreciating
currency and the relaxation of visa entry
requirements.
More independent
Increasingly, the Chinese are more likely to travel
independently, though group travel remains
popular. When asked about the breakdown of
guests with regards to group travel versus free
independent travellers (FITs), respondents to the
CITM reported a fairly even split between the
two. The biggest proportion of FITs was reported
in APAC (60 per cent) and the US (59 per cent).
Hoteliers in Europe indicated their customer mix
was more balanced between FITs (53 per cent) and
groups (47 per cent). Hoteliers in South America
were the only region to report the group travel
market (54 per cent) was more popular than
individual travellers (46 per cent), though only by a
relatively small margin.
Younger, more sophisticated
Feedback from hoteliers to the survey suggests
Chinese travellers are becoming younger, more
confident, savvier online and are more familiar with
foreign cultures and customs. The internet user
population in China of 500 million people means
there is a rapid shift already online as a means of
both researching and booking travel.
High-end shopping and new
experiences
Chinese travellers are known to have high levels of
disposable income and a propensity to purchase
high-end items from the world’s luxury retailers.
Not only do they travel to the renowned shopping
hubs like New York and Paris they are increasingly
seeking to expand their travel experiences through
exposure to different cultures and visiting places
of outstanding natural beauty. For instance, from
January to September 2011, China was the biggest
arrival market for the Maldives up by 61.8 per cent,7
and for Vietnam, up 44.9 per cent.
Big spenders overseas
The latest Hotels.com Hotel Price Index8
, a twice-
yearly report based on bookings made on Hotels.
com, found the Chinese were among the world’s
biggest spenders on accommodation when
travelling abroad.
In 2011, Chinese travellers spent an average of
USD$169 per night on hotels beyond their borders,
the sixth-highest average spend behind Japan
(USD$190); Switzerland (USD$182); Australia
(USD$177); USA (USD$174) and Norway (USD$174).
7 TTG Asia (2012) TTG Asian Tourism Guide 2011/2012.Singapore/Hong Kong: TTG Travel Trade Publishing
8 Hotels.com, “Hotel Price Index” (2011) Retrieved: 25 May 2012 from
http://asiapress.hotels.com/wp-content/uploads/2012/03/HPI_2011_China.pdf
English-speaking
Maps
Young
Receptive
Purchasing power
Online reservations
Money
Independent
KnowledgeableAffluent
Confidence
Informed
Flexible Family tours
Friendly
Popular themes identified by hoteliers
when describing Chinese travellers
6. 6
Hong Kong
Singapore
Tokyo
Taipei
Seoul
New York
Osaka
Bangkok
Phuket
Las Vegas
1
2
3
4
5
6
7
8
9
10
RANK
London
Paris
Los Angeles
San Francisco
Kuala Lumpur
Sydney
Rome
Vancouver
Honolulu
Milan
11
12
13
14
15
16
17
18
19
20
RANK
“We are seeing a larger
number of families travelling
for pleasure rather than
single-business travellers”
- USA
“Chinese guests are buying a
higher category of room with
inclusions” - Singapore
“Chinese guests are well-
travelled, knowledgeable
and more confident to travel
outside of a group” – Australia
“Chinese travellers now have an
affinity with European “culture”
- eating habits, appearance,
language…” – Germany
“Our Chinese guests have
cultural interests and high
purchasing power” - Brazil
“They show a liking
for Indian food” – India
“Affluent and
more educated”
– Ireland
“They use the internet
more frequently” – Italy
“Not only the wealthy, the
ratio of more mainstream
travellers to Japan has
increased” - Japan“Much more experience
on the trip, better English
skills, allowing us to
communicate more
easily with them” – Spain
“They are more
independent, not just
a group of travellers” -
Norway
“They are interested
in the culture of the
country”– Argentina
“Penchant for
luxury brands” -
France
The 2011 Hotels.com Hotel Price Index’s top overseas
destinations for Chinese travellers:
Biggest changes in travellers from China compared to ten years ago as
identified by hoteliers in the CITM
7. 7
Hotel hotspots for Chinese travellers
The CITM found most Chinese travellers focus
their attention during their stay on experiencing
the local attractions.
A hotel’s shops, restaurants and bars were the
most popular on-site facilities, reflecting the
broader consumer spending trends among the
Chinese.
In Europe, the US and South America, hotel
restaurants were the most frequented hotel
facility whereas, in the Asia Pacific region, hoteliers
reported the hotel’s shops were the most
popular amongst Chinese travellers.
The hotel’s spa and gym were the least popular
facilities with Chinese guests.
6%
SPA
BAR SHOPS
RESTAURANTS
24%
12% 19%
3%
GYM
The percentage of respondents who say which service or
facility is the most popular with Chinese guests
Shopping locations
Chinese food
Tours
Directions
WiFi
Mandarin-speaking
City tours
Tea
Internet
Casinos
Wineries
Room with a view
Fashion
Tourist sites
Internet
Recommendations
Chinese information
Maps
Hot water
Adaptors
Discounted rates
Slippers
Some popular topics with
Chinese guests
8. 8
“Tango shows” – Argentina
“Visits to vineyards”
– France
“Providing translation
and reading material
in Chinese” – UK
“Rice/noodles, Chinese-style
breakfast foods” – Australia
“Twin rooms”
– Germany
“Hot water and
power adaptors”
– Italy
“Very cheap
rates” – Singapore
“Info about retail and/
or outlets for luxury
brands” – Spain
“Where the local
Wal-Mart is” - USA
“Guides and car hire”
– Russia
“Free WiFi”
– Hong Kong
“Slippers” – Brazil
“The ability to speak
Mandarin with hotel
staff” – Denmark
Some popular requests from Chinese guests to hoteliers
9. 9
These are the most popular hotel services and facilities, identified by the CITM, that hotels are planning on
implementing to better serve Chinese guests:
Less than half the hotels surveyed are planning on making any
changes to their menus to cater specifically for their Chinese guests.
Many hotels are introducing additional guest services to make their
Chinese guests feel more at home.
Food beverage
Guest services
Service/facility per cent of global respondents
planning to offer to Chinese guests
Chinese restaurants 40
Instant noodles 45
Chinese tea 47
Chinese food menus 46
Chinese breakfast 51
Regional spotlight:
• 66 per cent of hoteliers in Europe are planning to add Chinese breakfasts
• 52 per cent of hoteliers in the USA are planning to add Chinese teas
• 70 per cent of hoteliers in APAC already offer Chinese food menus
Service/facility per cent of global respondents
planning to offer to Chinese guests
On-site shops selling luxury goods 43
In-house Mandarin-speaking staff 42
On-site translation services 54
Translated travel guides 58
Partnership with China UnionPay
to process payments from
Chinese guests
62
Regional spotlight:
• 58 per cent of hoteliers in Europe are planning to add Mandarin-
speaking staff and 68 per cent will introduce Mandarin translated
travel guides
• 71 per cent of hoteliers in the USA are planning to partner with China
UnionPay and 63 per cent intend to establish on-site translation
services
• 30 per cent of hoteliers in APAC are planning to add Mandarin-
speaking staff and 41 per cent will open shops selling luxury goods
Tips for the top service
enhancements
10. 10
Marketing
Media and entertainment
Service/facility per cent of global respondents
planning to offer to Chinese guests
Translated welcome materials 66
Chinese-language website 54
Regional spotlight:
• 64 per cent of hoteliers in APAC are planning to add translated
welcome materials
• 57 per cent of hoteliers in Europe are planning to translate the hotel’s
website into Chinese
• 46 per cent of hotels in the USA already offer a Mandarin-version of
its website
Service/facility per cent of global respondents
planning to offer to Chinese guests
Chinese newspapers and
magazines
53
Chinese TV programmes 41
Regional spotlight:
• 53 per cent of hoteliers in Europe are planning to add Chinese TV
programmes
• 59 per cent of hoteliers in the USA are planning to add Chinese
newspapers or magazines
• 59 per cent of hoteliers in APAC already offer Chinese newspapers or
magazines
Most hoteliers do recognise the need to have materials available in
Mandarin to help attract the attention of Chinese travellers.
Hoteliers in Europe are lagging behind their counterparts in the USA and
APAC when it comes to providing Chinese newspapers and TV channels.
11. 11
How hotels are catering to the
Chinese traveller
Case study – The Ritz, London
The Ritz London, one of the world’s most
iconic luxury hotels, was the first hotel in
Britain to install China UnionPay terminals to
cater for the increasing number of Chinese
guests. Guests are now able to use China
UnionPay cards throughout the hotel, to pay
for accommodation, dining, souvenir gifts
and beauty treatments. The hotel has also
launched a programme of bespoke luxury
shopping and lavish suite accommodation
with personal butler service, available
exclusively to China UnionPay card holders.
As Chinese travellers broaden their travel horizons,
the global hotel market has needed to adapt
quickly across the whole booking and
travel process.
Multinational hotel chains are leading the way,
seeing the opportunity to benefit from the
profitable Chinese traveller as customers from
some other geographic areas decrease due to
economic uncertainty. By enhancing their existing
offering to cater to the unique requirements of
this market, many of the world’s leading hotel
groups have introduced programmes specifically
designed to make Chinese travellers feel even
more at home during their hotel stay.
Undoubtedly, other hotel groups and independent
hotels will have to follow suit and implement
services for Chinese guests if they too are to
compete for this lucrative market. The CITM found
hoteliers are not solely focusing on one particular
area of operations to increase their appeal to the
Chinese traveller. Instead, changes are planned
across the board. From employing Mandarin-
speaking staff to offering typical Chinese meals,
many hotels are working hard to meet the
increasing demand.
Case Study – Starwood
Personalised Traveller
programme
To cater for Chinese guests that travel
to its hotels around the world, Starwood
Hotels Resorts launched its Starwood
Personalized Traveller programme in 2010.
The programme offers Chinese guests
an in-hotel specialist fluent in Mandarin for
the duration of their stay. This specialist
provides translation assistance and
facilitation of transport, if required. Upon
arrival, guests also receive a welcome pack
full of local information including shopping,
sightseeing and key hotel information.
In-room facilities include slippers, kettles,
instant noodles and tea. Hotel restaurants
also have Chinese-friendly menu items like
congee, noodles and rice.
Case study – ACCOR Optimum
Service Standards
In response to the booming number of
Chinese travellers visiting Australia, Accor
has introduced Optimum Service Standards,
accrediting 25 of Accor’s Australian
hotels. This enables them to meet the
expectations of Chinese travellers with
the inclusion of Chinese dishes on the
menu, Chinese newspapers and television
channels, Chinese language welcome kits
and Chinese adaptors to make guests from
China feel at home. An integral component
of the Optimum Service Standards is
special training for Accor’s staff in cultural
differences that will assist them to more
respectfully serve Chinese guests.
12. 12
Case Study – Hilton Huanying
In response to the growing number of
Chinese guests at its hotels, in 2010, Hilton
Worldwide introduced the Hilton Huanying
programme. Huanying, which means
“welcome” in Mandarin, currently operates in
65 Hilton Hotels Resorts around the world.
The programme offers Chinese guests
authentic products and services. On arrival
they are greeted by at least one Mandarin-
speaking staff member. Rooms have two
pairs of slippers, at least one Chinese-
language TV channel, electric kettles with
an assortment of teas and a welcome
letter in Chinese. The breakfast menu
at participating hotels features congee,
dumplings and other traditional Chinese
breakfast items.
A Hilton Huanying Programme Toolkit
ensures hotel staff members are
adequately trained to deliver a consistently
high-quality guest experience for Chinese
travellers.
Case Study – Galaxy Macau
To ensure Galaxy Macau™ is the destination
resort of choice for Chinese travellers, the
company strategically chose a SE Asian
resort theme with the insight that Chinese
travellers tend to visit SE Asia on holiday.
The luxury resort then chose two award-
winning, Asian, 5-star, hotel brands (Banyan
Tree and Hotel Okura) to compliment Galaxy
Hotel in delivering the same flawless and
heartfelt service standards they call “World
Class, Asian Heart”. Knowing that food plays
an integral part in any Chinese traveller
holiday, the resort also caters for Chinese
palates by offering a wide variety of Chinese
foods and Macau’s largest selection of
pan-Asian cuisine. Furthermore, all property
signage is bilingual, simplified Chinese
and English, for easier navigation of the
550,000 square meter resort. And finally,
Galaxy Macau was Macau’s first integrated
destination resort to feature Alipay in its
booking engine, giving Chinese travellers the
ease and convenience of access to China’s
largest online payment gateway.
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About Hotels.com
Hotels.com is a leading online accommodation
booking website with more than 150,000 properties
around the world, ranging from international chains
and all-inclusive resorts to local favourites and
bed breakfasts, together with all the information
needed to book the perfect stay. There are more
than 85 Hotels.com sites worldwide in Europe,
North, Central and South America, Asia Pacific, the
Middle East and South Africa, the majority of which
are in localised languages. The China site was
launched in 2009.
Hotels.com benefits from one of the largest hotel
contracting teams in the industry, negotiating
the best rates for its customers, and offers
frequentsales, special deals and promotions.
Regular customer e-newsletters provide exclusive
offers and advance warning of up-coming sales.
There are more than 6.5 million reviews on the site
from users who have actually stayed in the hotels
to ensure customers can make an informed choice
when booking.
Through its industry-leading loyalty programme,
Welcome Rewards, customers can earn a free
night for every 10 nights stayed at more than
65,000 hotels, subject to Welcome Rewards terms
and conditions as set out at www.hotels.com.
Under its Price Match Guarantee, if a customer can
find a lower price on a prepaid hotel, Hotels.com
will refund the difference, subject to Price Match
Guarantee terms and conditions as set out at
www.hotels.com.
Travellers can book online or by contacting one
of the multilingual call centres. Special apps
for mobile phones and tablets can also be
downloaded at www.hotels.com/deals/mobile
enabling customers to book on the go with access
to 20,000 last minute deals.
Amongst other awards through the years, in
2012 ByteLevel recognized Hotels.com as a Top
5 Best Global Website for 2012. The ByteLevel
report card evaluates websites on global reach,
global navigation, global/mobile architecture and
localization and social efforts. Hotels.com was
also once again named “Best Overall Customer
Experience” according to a study by Keynote
Competitive Research.
For the last eight years, Hotels.com has published
an award-winning twice-yearly review of
international hotel room price trends called the
Hotels.com Hotel Price IndexTM
which is now
produced in more than 31 individual country editions.
Hotels.com is part of Expedia, Inc. the largest online
travel company in the world with an extensive
portfolio that includes some of the world’s best-
known brands. Follow Hotels.com on Facebook, on
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For more global information or to interview one of
our spokespeople, please contact:
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zchan@hotels.com
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