The New Gold- Luring the Chinese Tourist

Luring the Chinese

Traveler

Dec 2010

sinotechgroup.com.cn

Marketing to the Chinese Tourist

“According to China National Tourism Administration (CNTA), in 2015 China will be the No. 1 tourism source market worldwide”


Marketing to the Chinese Tourist

The CNTA said the growth rate of Chinese outbound tourism for the first eight month of the year 2010 was 21% compared to the same period of last year. This translates to an overall number for 2010 of about 58 million border-crossings from Mainland China.


Everyone Wants The Chinese Tourist

“Taiwan tourism industry in Kaohsiung and Pingtung are scheduled to meet with tourism officials from China Monday as part of efforts to attract more Chinese visitors to the southern part of Taiwan”.

“Indonesia is expected to attract more Chinese tourists through active tourism promotion in China”

“Canadian minister promises to attract more Chinese tourists to Canada”

“Australian federal government announced that it will spend $30 million on campaign to lure more Chinese tourists Down Under.”

“Italy's tourism authority is asking its hotels to provide hot water in rooms and calling for more signs in Chinese in a bid to encourage extra visitors from China. “

“The Japan National Tourism Organization will also try to attract Chinese enterprises to bring their employees or clients to Japan”

“Vietnam trying to attract more Chinese tourists”


China Outbound: Purpose of Travel


China Outbound: Purpose of Travel


China Outbound: Who? •  Young (20-39 years old)

•  Well educated (with tertiary education)

•  With higher income

•  Working professionals and semi-professionals •  Top management of companies and government bureaus •  Small groups on an incentive trip

•  Tech-savvy and fashionable (interested in cutting-edge gadgets and latest fashions)

•  4:2:1 (3 generations – grandparents, parents and single child)


Characteristics Of Major Generating Regions

•  Northern China (Beijing and Northeast China) - Most of the official travel is from Beijing - Beijingers are engaged in politics and love socialising - Work comes second to friends and family •  Eastern China (Shanghai and the Coastal Provinces Zhejiang and

Jiangsu) - Regions with a history of overseas travel, resulting in relatives abroad - Wealthiest in terms of average income - Shanghainese are trendy and internationally oriented - Very price-driven, shrewd business people who drive hard bargains •  South China (Guangdong Province and Neighbouring Provinces) - Guangdong benefits from its proximity to Hong Kong as the commercial gateway into China - Its capital city, Guangzhou, is a major trading and commercial centre - Consumer spending is the highest among China’s provinces - People in the south prefer higher standard of services to cheap prices


China Outbound: Travel Preferences

Short Haul to Long Haul: Significant growing interest to ‘less discovered’ European destinations; trips to S.E. Asia, Japan, Korea and Oceania still popular Group Tour to Independent Travel: More Chinese travellers are able to apply for individual visas (as long as they showcase sound financial and employment status) Multi-Country Packages to Hybrid Tours: Travellers are interested in in-depth travel rather than multi-country packages. They are keen to return to destinations enjoyed the first time. The Chinese ‘top priorities’ in life are keeping fit & healthy, professional development and spending time with family & friends. In terms of holidays, taking domestic holidays is at least ‘quite important’ for 80% and ‘extremely important’ for 9%. Foreign holidays are regarded as at least ‘quite important’ for a smaller proportion (61%) and ‘extremely important’ for 10%.


China Outbound: Research Sources


China Outbound: Booking Pattern


How to engage the Chinese Traveler

Digital Marketing

Chinese Travelers Research Online, reach them using….

Search Social Media Mobile Online Media


Chinese Internet Fast Facts

Up to June, 2010, the number of net citizens in China has reached 420 million

The number of broadband net citizens has reached 364 million

The number of mobile net citizens in China has reached 277 million

The weekly online time of net citizens is 19.8 hours

The growth rate of users for online payment, web shopping and e-banking was 30%

The number of Chinese websites is 2.79 million 26th Statistical Report on Internet Development in China (July, 2010)


Leveraging Digital Marketing Channels


Email Marketing


Mobile Channels

When launching a mobile campaign, it’s important to remember there are multiple mobile channels to reach mobile users. They include: •  Mobile websites •  Downloadable applications •  Mobile messaging •  Mobile video


Multiple Mobile Ad Types


Social Media

•  Social Media can increase traffic to your site, including incoming links and search engine traffic

•  It can increase your company's brand awareness on the Web

•  It can increase your search engine rankings (SEO)

•  It gives you quick access to a lot of people

•  It's a great way to build engaging customer •  relationships

•  Understand what your customers are thinking


Social Media Stages


Social Media – The Chinese Way


15% 15%

20% 26%

38% 38%

41% 54%

59% 63%

66% 72%

Travel Planning Tour Operator

General Discount Cruise Line Sites Car Rental Sites

Travel Search Travel Review

Destination Sites Airline Sites Hotel Sites

Online Travel Search engine

Which online sources do you use to learn about or choose vacation destinations? (n=1339, only consumers in-market for or recently booked destination travel who use the Internet) Source: TNS

A mix of other travel site categories are used as research sources, yet search eclipses even Online Travel Agencies

Search is the #1 online channel for destination research


71% 22% 7%

Search Marketing

Google who?


Online Media (Display)

•  Media Buying is typically considered the act of purchasing a predetermined amount of display media through a contract –  I Will spend $x over x days

•  All rates are negotiable and can be on CPD, CPM, CPC or CPA basis.

•  Signed contracts are called Insertion Orders (IOs) •  Performance goals need to be assigned •  Multiple ads for each standard ad size

Note: Chinese publishers typical sell inventory on a ‘cost per day’ (CPD) basis


Online Media (Display)


SinoTech Group - Fast Facts

•  Heritage in software development

•  95 employees

•  Global reach

•  Travel & Hospitality Focused

•  Offices in Beijing, Shanghai & Hong Kong

Thank you - 谢谢 Dr Mathew McDougall | @sinotechian

sinotechgroup.com.cn | @sinotechgroup


This presentation can be found at: www.slideshare.net/jarrahbear

[email protected]

The New Gold- Luring the Chinese Tourist

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