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2013 PATA Industry Council Meeting Presentation Slides on 28 April 2013, Bangkok
1.
2.
3.
4.
5.
6.
7. Priyanka Gargav,
Regional Manager
Asia,
TripAdvisor
Wang Chunfeng,
Vice President,
Beijing U-Tour
International
Travel Service,
China
Chris Lee,
PATA UK Chapter
Chairman,
Managing Director,
LTC
Joe Nguyen,
Senior VP - APAC,
ComScore Inc.
33. World’s largest travel site
The New E-Market
How to win the ever connected travel consumer
Bangkok, April 23, 2013
34. By TripAdvisor user JakubLarysz, Jan 2013
We help people plan and
have the perfect trip.
“Difficult but very nice!”
Reviewed January 23, 2013
7 people found this review helpful
It takes 5 hours to reach Troll’s tongue (Trolltunga). But the view and
place is really nice. If you are comfortable with hiking just take a lunchbox
and go there! :)
35. More than 100 million travel reviews and opinions
from travelers around the world:
259,000+
attractions
680,000+
hotels
1,100,000+
restaurants
116,000+
destinations
14,000,000+
candid photos
39. Inspiration > Planning > Travel > Review
21languages
31Mapp
downloads
80City Guide
cities
45M*monthly
uniques
* Average monthly unique users on mobile devices for Q4 2012, according to TripAdvisor log files
40. 72% of travellers worldwide say the ability to
book via mobile devices is useful
The TripBarometer by TripAdvisor is based upon an online survey conducted in Dec. 2012 – Jan. 2013. A total of 35,042 people participated in the online survey from 26 countries spanning 7
regions. The sample is made up of 15,595 consumers and 19,447 businesses, making it the world’s largest combined accommodation and traveler survey.
47. Understanding China Outbound Travel
From UTour’s Perspective
Presented by Dr. Wang Chunfeng, VP-Development
Beijing UTour International Travel Service Co. Ltd., China
28 April, 2013 Bangkok
50. 50
POSITIVE FACTORS
…
…
…
…
…
More Leisure Time
VISA Relaxation
Rapid GDP Growth
Expanded Union
Pay System
Convenient
Transportation
More Disposable
Income
Stronger RMB
China Outbound Travel has maintained a rapid and steady growth for
the last decade due to many positive influencial factors, which has been
attracting the world’s attention.
Positive Factors for the Growth
51. “Outlines of the Chinese Citizens Travel Initiatives
2013-2030” emphasizing the importance of travel as an
avenue to enhance both the nation’s economy as well
as individuals’ quality of life.
The new Chinese President Xi Jinping even predicted
that 400million Chinese will travel abroad in the next 5
years.
“Tourism Law” enacted by Chinese government on
25th April, 2013 will guarantee the healthy progress of
the travel and tourism industry.
Favored Policy and Situation
53. Source: State Administration of Foreign Exchange
Outbound Travel Expenditures
(in billion US$)
In 2012, China spent USD102 billion in outbound
tourism, overtaking Germany and USA, the two largest
spenders in 2011 to the top list
54. First Stop
Departures
(in millions)
1 Hong Kong
SAR
34.96
2 Macau SAR 21.50
3 Korea (ROK) 3.00
4 Chinese Taipei 2.63
5 Thailand 2.24
6 Japan 1.96
7 Cambodia 1.85
8 USA 1.72
9 Malaysia 1.37
10 Vietnam 1.34
Destination
Arrivals
(in millions)
1 Hong Kong SAR 34.91
2 Macau SAR 16.90
3 Korea (ROK) 2.83
4 Thailand 2.79
5 Chinese Taipei 2.59
6 Malaysia 1.56
7 Singapore 1.52
8 Japan 1.43
9 Vietnam 1.429
10 USA 1.38
PATA Stats:
Top 10 Arrivals from
China 2012
CNTA Stats:
Top 10 First-Stop
Destinations 2012
Source: China National Tourism Administration Source: PATA
58. Source: China National Tourism Administration
First Stop
Departures
(in million)
1 Hong Kong SAR 6.28
2 Macau SAR 3.28
3 Chinese Taipei 2.76
4 Thailand 2.70
5 Korea (ROK) 2.25
6 Singapore 1.36
7 Japan 1.16
8 Malaysia 1.11
9 Vietnam 0.64
10 France 0.63
Top 10 First Stop
Destinations
Destination Market Share (%)
1 Asia 82
2 Europe 11
3 Oceania 3
4 America 2.6
5 Africa 0.8
6 Other 0.6
Destination and
Market Share
Business Handled by Travel Services (2)
61. Cooperation Among Players
There are many differences between businesses in source
markets and in destinations. Cooperation and mutual benefit
are the operating principles for most of travel services.
Charter Tours Created by
UTour and AirlinesCruise Tours Created by UTour
and Cruise Companies
63. Development of Wholesalers and Retailers
Forward / Downward
Wholesale
The Integration of
Wholesale and retail
Wholesalers
Backward / Upward
Wholesale
Providers of Products
and Services
64. 4-Level Structure of Distribution
★
★
★ ★
• Branch Offices
•in Cities & Towns
• Provincial Branch Offices
• Regional Branch Offices
National Head Office
65. 19
12
4
20 22
15
22
21
20
25
32
40
2007 2008 2009 2010 2011 2012
Annual Growth Rates of Expenditures
and Departures (%)
Expenditures Departures
Source: State Administration of Foreign Exchange :
China National Tourism Administration
Creation of High - Quality Products
66. UTour Departures growth rate 2012
Source: China National Tourism Administration
UTour
Short-Distance Outbound
Travel is the higher increase
in public demand.
Long-Distance Outbound
Travel is on the stage of
steady growth..
67. Group Package Tours constitute the leading force in China
outbound travel.
FIT, Family Tour and Special Interests Tour are popularity
among highly-educated people and post 80 and 90 generation.
68. Classic Series
Selected Series
Luxury Thematic Series
Member Private Series
Island Tour
in Southeast Asia
One Thousand Chinese People
Celebrating Lunar New Year in
Disneyland, Paris
French Wine-Tasting Tour
The Arctic Pole Cruise
The System of UTour Products
69. N0.4 of Top 100 Largest China’s Travel Services 2011
(Latest), Ranked by China National tourism Administration.
No. 2 of Top 10 Largest China’s Outbound Travel Services 2011
(Latest), Ranked by China National tourism Administration.
Oneof Top 10 Largest China’s Outbound Travel Wholesalers
2012, Ranked by Industry’s Well-Known Media “Best of The Best in
Tourism”.
70. Member of AND
Founded in 1992, head office in Beijing, branch offices in
Shanghai, Chengdu, Shenyang, Xian, Wuhan and Harbin
More than 1000 employees
Over 2000 sales agents all over China, 30 directly-
managed retail stores in Beijing
Business operations in over 100 outbound tourism
destinations
74. The Concept
• PATA Exchange is a contracting event
• Pacific Asia sellers meet UK tour operator PMs
• Monday after ITB
• 5th year, continued to grow year on year
• Established event in UK Travel Trade Calendar
75. Event Logistics
• This year held in Central Hall Westminster
• Much larger location taking up to 70 tables (up from
42)
• Sales start up to 11 months in advance
• Exhibitors or sellers include:
– Tourist Offices
– Airlines
– Hotels
– Cruise Companies
– Destination Management Companies
76. Charges
• £300+VAT for PATA UK Chapter members
• £400+VAT for non-members
• FREE to tour operators to attend
77. Event Management
• Bespoke online appointment system purchased
• Dedicated website www.pataexchange.com.
• Website allowed exhibitors, or 'sellers', to:
– Register
– Add their company profiles and company logos to the site
– Secure pre-arranged appointments
– 15 minute appointments
– 5 minute break between appointments
– Maximum of 20 appointment slots available
78. The Appointment System
• Buyers register for the event online
• Buyers request appointments with Sellers
• Sellers can also request appointments with
Buyers
• When a seller or buyer clicks to book an
appointment, the person they want an
appointment with receives an email notification
and a click-through link to 'accept' or 'decline' the
appointment.
80. Promotion
• Promotion commences once 40 Sellers signed
up
• PATA UK Chapter Database
• Member Tourist Offices Databases
• Media Sponsor, Selling Long Haul Database
• New for 2013 - “Hosted Buyer Programme’
81. Sponsorship
• Media Sponsor – Selling Long Haul
UK’s monthly trade magazine promotes the event both via email
and through the magazine. SLH also guarantees a full page of
coverage in return for branding on all promotional activity
• Drinks Reception Sponsor – Tourism Australia
Tourism Australia provide wine for the drinks reception after the
event in return for branding on all promotional activity.
• Event Sponsor – Reed Travel Exhibitions (WTM)
Reed contribute £1,500 in return for branding on all promotional
activity. Dedicated e-newsletter to PATA database and
presentation about WTM during the drinks reception
• New for 2014 – Lunch Sponsor
PATA UK is in discussions with a couple of airlines to sponsor
lunch in return for branding and a short presentation.
82.
83. In Summary
• Record number of buyers
• Record number of sellers
• PATA UK Chapter’s most profitable event
• Major membership recruitment event
• New for 2013 - PATA Luxury
Exchange, Manchester
85. Past Academy
• Now in its 4th year
• On-line Training Scheme
• 18 Destination Modules
• Best Value UK On-line Training Scheme
• Facilitates free membership to Travel Sales
Staff
86. Present Academy
• New for 2012 - Sales Incentive introduced
– Love to Shop Vouchers
– Monthly sponsorship by tourist offices
• 13% increase in modules taken
– Example: PNG over 120 agents completed module
• New for 2013 - Hotel and Airline modules
introduced
• Training over 4,260 Agents and Operators online
87. Future Academy
• More hotel and airline sign ups, target 10 in
each
• Increased investment in Training Incentive
• Investment in improved analytics
• Social Media Links
• Discuss opening to the Irish market
88. In Summary
• PATA Academy is key membership benefit
• PATA Academy is key to membership
recruitment
• PATA Academy’s potential for worldwide PATA
family
OTA, Airlines and Hotels are fairly evenly matched. The big gap means that there is not much overlap – particularly between OTA and hotels
The main increase in travel sector has been attributable to OTAs
In a mature market, you see the seasonality more clearly. OTAs and hotels track each other.
While OTAs and hotels track each other, during Holiday planning OTA and Hotel increase, but airlines unchanged.
APAC travel continue to rely on the major OTA for inbound.
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