Destinations presentation

Why China?

*According to the China Tourism Academy

OT – Outbound Tourists

Figures are for the first half of 2014

Local market Trends Shift to online – 7.7% of whole travel market

Travel patterns diversify (more in-depth, self guided and high end travel)

Visa procedures are being streamlined, currency appreciation, rising incomes

Global market Trends Competition on a global flat market, where tourists are travelling more and

more to (previous) remote destinations

Focus on the “cultural development” of the consumer

At European level: rising visits to CEE and EE countries

Chinese outbound tourists - profile 50% come from first tier cities ( Beijing, Shanghai and nearby coastal

provinces, Guangzhou) – different markets (all have high mobile penetration)

Top tourist destinations (long haul): Paris, London, Rome, Berlin, Washington, LA, etc. The typical tourist: male, 25-35 years old, monthly income above 15,000 yuan (over 2000$) – group travelers tend to earn less

In generalMonthly income – 11,512 yuan (around 1800$), family income – 20,000 yuan (~3000$) /month

This is 3xaverage urban income/month in a second tier city (not Beijing, Shanghai, Guangzhou)

Chinese outbound tourists in Europe - profile Tourists to Europe tend to be frequent travelers (several outbound trips/year)

87.54% choose travel agencies for services (for some countries tourist visas must be obtained through tourist agencies)

37% travel in groups (over 46, never/once abroad, earn less than 8,000 yuan), 32% independent (frequent trips, earn more than 10,000 yuan), 19% semi-independent tours (preferred by tourists between 26-35 y)

Most of the travel budget goes to shopping (especially for the high income group)Ex. Average expenditure in France 1900$

Interested in luxury goods, souvenirs (gifts, for own use) – most of them of high-quality/price (a shift off label-brands to more “exclusive” products)

Group travel focused on sightseeing, and less on shopping

Europe is also an important market for young post 80s women – second favorite eloping destination (after Maldives)

1 元 = 0.16 $October 2014

What should destinations realize? That some service and information availability (in Chinese) needs to be

provided

The planning process is going online – destinations need to be there, with all necessary relevant information localized

From young independent travelers to post-60 group tourists sent by their children or spending their retirement, traveling is about status

This means young people are looking for high quality products and cultural experiences. Being able to share them through CN social media should be an important concern for destinations. They buy products for themselves and for friends and families back home (daigou market – buying on behalf of a friend presents considerable retail opportunities)

It also means positive word of mouth can go a long way – not only do travelers ask their friends/relatives when starting the process, they will talk about their travels and share their purchases (luxury, souvenirs, local items) and experiences – view next slide

Source: Hakuhodo Institute of Life and Living Shanghai,Campaign Asia Pacific – China Innovation edition 

Chinese outbound tourists – expectations and problems Language/cultural barriers are the main problem (considering impact on

safety)

Attraction towards European destinations is built on their long history, unique cultures, cozy environments, landmark buildings, abundant museums, etc.

Visa streamlining, direct flights important attraction policies, along with special tourist routes: considering future migration, study

Food: restaurants to have Chinese language menus or the waiters to speak Chinese/English (other problems: no UnionPay POS, no wifi for sharing experiences)

Accommodation: no Chinese language signs, no Chinese language channels

Transport: no Chinese language indicators

Tours: no Chinese language signs/indicators, tour guides

Shopping: duty free shops, large sized department stores, brand franchise stores (1,700 dollars on shopping on average – over 50% on credit cards, lack on UnionPay, Alipay POS restricts purchases), no Chinese language services

The main channels of information outside China: foreign tourism websites, promotional activities organized by the city

“Top two information channels that Chinese outbound tourists wish outbound tourist cities to create are official Chinese language sites, official Weibo and Wechat accounts (social media)”

618 m people online 81% access the internet via mobile handsets, instant messaging is the most popular online activity (most popular client Weixin/Wechat has 400 m active users/month)

Group buying is the fastest-growing online activity, followed by travel booking, online shopping and online payments

Coming to a country near you? Pre visit research implies a large amount of information

– for Europe – transport, local customs and practices, security

In this case 1 page Baidu search

1. Baidu travel journal (online travel guides)

2. Mafengwo travel guide

3. Baidu forum (travel to RO related questions)

4. Baidu library

5. Baidu Images

6. 51766.com travel guide

7. Qunar ad (travel booking site)

8. Qyer.com (travel guide)

9. Kuxun.com (travel guide)

Only local/user generated content

In most cases, the search and booking process is done online (home/mobile)

This is where we come in

Market research and planning We provide destinations/public authorities with clear marketing strategies

and communications plans by focusing on a coherent destination image that understands Chinese perceptions and cultural background

We also develop market/consumer studies/research/insights to know what makes you worth the trip

We build marketing campaigns –promotional activities, tourist routes, setting up cooperation with Chinese travel agencies and other interested stakeholders, promote tour routes

Develop new ways of representation/action on the Chinese social media in order to make information easily available

Also: Chinese language communication strategies and tools for destinations (boards, tour leaflets, maps, cultural reminders, handbooks, etc. )

Strategy implementation and product/destination development

Build travel information platforms in order to provide for Chinese language information channels (online .cn, Weibo, Weixin, etc. )

Implement plans for active engagement on important social media channels (Weibo, Wechat/Weixin) – promotions, travel info, cultural info, regulations, safety.

Organize events, online promotions (including SEM/SEO), implement marketing strategy campaigns on all channels, participating at Chinese tourism fairs, etc.

Monitoring

Tourist arrivals monitoring/research

Marketing campaign tracking and reporting, including Chinese social media tracking and other O2O campaigns

Contact:bogdan.ditoiu@sinocentrica.com