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Mr Patrick Basset

Editor's Notes

  1. China Overview 1.4 billion people 400m people in the middle-class. Set to increase to 550m people by 2025 Middle class defined as earning US$3.6k-US$36.4k per year 1.4% inflation GDP of US$11.8T (+6.5%) in 2017 751M internet users 4% unemployment
  2. China is today the largest emitting outbound travel market globally. With a population of 1.4 billion people and nearly 150m outbound tourists in 2018. Latest statistics estimate annual spending to be approximately US$260 billion (2017). A total of 200m Chinese people are expected to travel internationally by 2020 About China Travel Market: 16% of Chinese travel is spent internationally 122m visitors spent US$260 billion in 2017 85% of international travel is within APAC Chinese outbound travelers will reach 200m by 2020 (Chinese National Tourism Administration)
  3. 70% of travel related bookings are made through mobile. 650m WeChat users (used for purchases, messaging, booking taxis, booking hotels) Online booking engines are dominated by local players: CTrip (46% market share) Fliggy Meituan OUTLOOK: By 2020 China online travel market will hit US$108 billion By 2020 mobile bookings will hit US$83 billion
  4. China is moving from an investment-driven economy to a consumption driven economy. This is positive for outbound travel as a growing middle class with more generous spending habits. About China’s consumption-driven economy: 35% of income spent on international travel by Chinese millennials The IMF forecasts that the Chinese economy will expand by 42% between 2017 and 2023. Expected to be the same size as the US economy by 2026. The world’s largest middle class, fueled by income growth, will reshape consumption. By 2027, consumption is expected to grow 6 percent annually on average, boosting outbound travel.
  5. Hotel chains and starred hotels are the accommodation of choice for almost half of Chinese travelers. Chinese guests are attached to their culture, customs and traditions so hotels must have Chinese-specific products or services for international trips. Safety, comfort and Chinese-specific services are critical to capture Chinese travelers: 60% of Chinese travelers consider the safety of their destination as a critical factor for their travel decisions. About Chinese Travelers Chinese guests are attached to their culture, customs and traditions Hotel chains and starred hotels are the accommodation of choice for almost half of Chinese travelers Hotels must have Chinese-specific products or services for international trips Safety, comfort and Chinese-specific services are critical to capture Chinese travelers 60% of Chinese travelers consider the safety of their destination as a critical factor for their travel decisions 37% of Chinese travelers consider the history and heritage sites as a critical factor for their travel decisions 29% of Chinese travelers consider the cuisine of their destination as a critical factor for their travel decisions
  6. China’s Digital Innovations and Trends 54.5% of China’s population use the internet China is the world’s largest e-commerce market By 2020 it will be larger than the combined US, UK, Japanese, French and German e-commerce markets 724m mobile internet users Mobile internet time-share represents 80% of total internet usage
  7. China is the world’s largest e-commerce market. By 2020 China online travel market will hit US$108 billion with US$83 billion via mobile bookings. Hotels must offer mobile-friendly booking platforms.
  8. Accor has developed a strategy to establish Accor as a leader in hospitality across China’s domestic and outbound travel markets. This strategy is focused around: Guests – ensuring Chinese guests feel a sense of welcome and security whenever they stay at an Accor hotel Hotels – ensuring hotels are equipped to deliver the appropriate services to Chinese travelers Owners – demonstrating our expertise in the Chinese market and ability to deliver incremental revenue to hotels
  9. Accor has developed 22 initiatives with 15 key IT developments to drive greater loyalty and leverage innovative Chinese digital technology. Our 4 main priorities at Accor are to: Capture the Chinese travel market to drive domestic and outbound revenue We are developing a point-of-sale system specifically for Accor’s booking platform in China We are boosting our connectivity with distribution partners We are ensuring we have complete capabilities to accept multiple payment solutions Develop our Chinese loyalty member base The launch of ALL, our new lifestyle loyalty programme Make our Chinese guests feel welcome around the world Ensure hotels have the training to manage the expectations of Chinese travelers Sharing unique preferences of our guests with our global network via ACDC Leverage innovative Chinese digital technologies for Accor globally Strengthen our technology partnerships in China
  10. Le Club AccorHotels and Accorhotels.com are merging to create ALL – Accor Live Limitless. From the end of 2019, customers will be able to book on All.accor.com and their loyalty program will be ALL-Accor Live Limitless.  One single, user-friendly platform for all our customers – both business and individual customers. Bookings, points, experiences, events – everything is available on one single website and its app.
  11. Because we always offer more: More brands (50+ including 38 hospitality brands) More services More personalization More loyalty More partners More touchpoints