Marketing to China's Rising FIT Travelers
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The document discusses the shift from Chinese group travel to independent travel (FIT) and how destinations and companies can market to Chinese FIT travelers. Some key points: - Chinese outbound travel is growing rapidly, expected to reach 200-315 million annual trips by 2020, with more travelers going independently rather than in groups. - To appeal to Chinese FITs, destinations and companies need to provide a more personalized experience, build trust, understand Chinese priorities like culture, food and loyalty, and engage travelers at all stages of the trip through multiple online and offline channels. - Relationships and understanding Chinese communication and business styles are essential to success in this important emerging market.
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Marketing to China's Rising FIT Travelers
- 1. Travel Distribution Summit Asia 2014 The shift from Groups to FIT in China How to market to China's rising numbers of independent travellers Roy Graff – Managing Director, ChinaContact @chinacontact roy@chinacontact.org
- 2. The China outbound tourism market is already impacting nearly every international destination. Every single tourism organisation and company needs to formulate a China market strategy and prepare the ground work now. • Over 18 years of hospitality, e-commerce and tourism industry experience in China • Launched independent travel business division in China on behalf of Gulliver’s Travel Associates • Fluent Mandarin Chinese speaker and student of Chinese philosophy, literature and poetry • Managing Director of ChinaContact, working with travel businesses on strategies and implementation of China market access
- 3. Destinations & Associations Hospitality Tourism & Media Online travel Event and Exhibition companies
- 4. China FIT – why now? • Group travel competition is about price • 16 years of outbound leisure travel started producing experienced travellers • High pressure tactics of group tours is off-putting • Increasingly, destinations offer Chinese friendly services • Global prevalence of Chinese operators and service providers • Rise of the middle class and high-income earners • Seeking status through travel experiences and individual control
- 5. Chinese outbound trips (millions) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Trips 12.1 16.6 20.2 28.9 31 34.5 41 45.8 47.5 57.4 70.3 83.2 97 108 120 133 148 165 182 200 Growth rate 37% 22% 43% 7% 11% 19% 12% 4% 21% 22% 18% 17% 11% 11% 11% 11% 11% 10% 10% 0 50 100 150 200 250 UN-WTO Forecast
- 6. Growth with current trajectory 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Trips 12.1 16.6 20.2 28.9 31 34.5 41 45.8 47.5 57.4 70.3 83.2 97 114 135 160 190 225 265 315 Growth rate 37% 22% 43% 7% 11% 19% 12% 4% 21% 22% 18% 17% 18% 18% 19% 19% 18% 18% 19% 0 50 100 150 200 250 300 350 Current Trajectory Historical growth rate average: 19% Total outbound trips by 2020 estimated between 200-315 million
- 7. Image of Chinese tour groups
- 8. Image of Chinese FIT
- 9. China’s new Tourism Law • Effective from 1 October 2013 • Aims to protect consumers • Ignores independent travel • Cannot advertise shopping tours • Guide cannot go into store with group • Tour leader must be a full time employee – But…shopping tours are back! • More on http://chinacontact.org/blog/chinas-new-tourism-law
- 10. • What are the sources for research and information? • Where should you engage them? • What are their priorities when travelling? Influencing Travel and Spending Decisions Overcome their instinctive distrust. Engage at a personal level. Learn to see beyond the clichés.
- 11. Source of information for travel research and inspiration • Friends and Family recommendations • Online travel forums • Review sites • Mobile content apps • Travel agents • Official Destination websites
- 12. Where and when should you engage them? • Inspiration stage • Planning stage • Booking stage • Pre-travel • On the road • Post-travel
- 13. Priorities of Chinese while travelling • Trust • Loyalty • Cultural Nuance • Food
- 14. How to better engage with Chinese FIT? • Speak to operators and wholesalers • Work with media • Engage with the Chinese business • Have a multi-channel strategy • Localise wisely • Have a clear focus of your target market
- 15. Social media • Cover PC and Mobile • Branding, engagement, service • Fragmented market • Time on social media • Your own web presence • Avoid piracy and copying • Mobile web and apps
- 17. Relationships – GuanXi • Nothing replaces direct face to face meeting and relationship building • Market visit • Client orientation • Gift giving • Negotiation techniques
- 18. Contact us Twitter: @chinacontact Email: info@chinacontact.org Tel: UK +44 20 8123 9528 TW +886 911301404 www.ChinaContact.org We Support Strategic PartnersMedia Partners
Editor's Notes
- Effective from 1 October 2013 Aims to protect consumers from unethical practices in group tourism Ignores independent travel Cannot advertise tours with shopping in itinerary Guide cannot go into store with group Tour leader must be a full time employee No promoting of excursions and optionals during the trip Opportunity to promote independent and self organised tours More on http://chinacontact.org/blog/chinas-new-tourism-law
- 90% of surveyed online by Skyscanner said that Visa application regulations affect their travel destination decision. Cultural sensitivity will win you more spending and enthusiastic recommendations. Free wifi will give you these in real-time! Knowing they want chinese food and making them comfortable will win dividends. Inspiration stage: Travel stories and celebrity endorsements, friends & family Planning stage: Visa regulations, logistics, itinerary Booking stage: OTAs, Comparison sites, travel forums, review sites Pre-travel: Real-time information, downloading content On the road: Mobile apps, real-time sharing, hotel and store service Post-travel: Travel blog, picture sharing, recommendations
- Trust: Anecdote: taking pictures of products in-store to sell more to their friends in China, not to rip-off copyright. Overcome the traditional mistrust of sales people Loyalty Stress brand heritage, history, human story Build loyalty with VIP benefits and personal engagement Focus on next generation consumers with small gifts or affordable ‘souvenir’ items Culture Avoiding stereotypes when it comes to HNW Chinese – they do not like to be considered part of the mass tourism outflow from China. Individual attention showing some understanding, appreciation and respect for Chinese culture and customs will be appreciated. HKG, China and Taiwan are quite different though all share a Chinese culture. Still lack of basic understanding of Chinese tourists – hot water in the room, slippers, toiletries, separate twin beds, smoking rooms or areas Food holds particular social importance to Chinese, How the food is served and eaten is as important as what it is Attention to origin of client can help determine what they would like to eat (aside from Chinese food) – sweet, spicy, salty etc. Even the more sophisticated appreciate Zhou (rice porridge) or noodles, chilli or black bean sauce etc.
- Speak to the operators, wholesalers who are bringing Chinese to UK/Europe Work with media that Chinese like to read before and during their stay Engage with the Chinese business, professional and student communities Have a multi-channel strategy and marketing plan to push demand while ensuring appropriate distribution. Localise wisely with bespoke content, not simply translation – protect your brand well. Have a clear focus of your target market, as China is too big and complex to cover it all.
- Social media straddles PC and mobile Branding to engagement and service Fragmented market reinforcing need to belong Spend more time on social media Your own web presence and domain in China crucial for authorised information Avoid piracy and copying Mobile friendly web and mobile apps are key to reach these ultra-mobile customers from research to purchase to after-sales.