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How the Chinese outbound travel market is changing

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... business needs, shopping Hong Kong, Macau, Japan, Korea, Thailand, Vietnam, Russia, USA, Singapore, Australia, Malaysia France ... traveling and music. – PowerPoint PPT presentation

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Title: How the Chinese outbound travel market is changing


1
How the Chinese Outbound Travel Market is changing
  • Who are the new Chinese visitors?
  • Effective sales and marketing strategies to
    attract Chinese
  • Which products and services appeal to the
    Chinese traveller?
  • What reliable information sources for this
    market exist?

2
B) Statistical overview
  • 2005
  • Chinese Outbound
  • Travel Destinations

2008 34 million outbound travellers Market
Value 17 Billion Dollars (?)
Zhang Qing/Byecity.com
3
ADS and other forms of tourism
  • Business
  • Paid by company/bureau
  • Predominantly company of male colleagues
  • Convenience and time
  • Concentrated shopping
  • Appreciate flexibility and attention to time
    management
  • Leisure
  • Self financed
  • Small groups of friends or family members
  • More flexibility and interest in attractions
  • Allocate more time for shopping.

Most high spending still driven by business and
delegations
4
The nature of the Chinese traveller
  • Who?
  • Small groups on an incentive trip
  • Top management of companies and government
    bureaus
  • internationalised Chinese
  • 421 (3 generations)

5
  • Middle and high income
  • White collar annual income USD 25k on average
  • Established pattern of business trips combined
    with leisure holidays
  • Increased awareness of luxury destinations
  • Desire to outclass others
  • Prefer convenience and access to range of
    activities

6
  • Where from?
  • South China
  • Eastern seaboard
  • North East
  • Western China

Beijing Dongbei
Xinan Xibei
Shanghai Huadong
Guangzhou Huanan
7
Outbound travel decision making process
  • Destination
  • Near -gt Far
  • Visa access
  • Recommendations
  • Marketing

8
Popular destinations (ADS)
  • Most popular destinations for Chinese
  • Reasons politics, time, cost, cultural affinity,
    language, food
  • Top aspirational destinations
  • Reasons status, novelty, culture, business
    needs, shopping

Hong Kong, Macau, Japan, Korea, Thailand,
Vietnam, Russia, USA, Singapore, Australia,
Malaysia
France, Switzerland, USA, UK, Australia, Germany,
Canada, Italy
9
Popular activities
  • The traditional activities
  • The break with tradition
  • Political change
  • Change in Attitude
  • Economic advancement
  • Demographic shift

10
  • These changes now lead to change in activity
    types
  • More family oriented activities
  • Variety of shopping and increased sophistication
  • Childrens pastimes
  • Cultural emphasis deep impact sightseeing
  • Development of short break holidays in Asia

11
Future Trends
  • South East Asia will grow as a market for FIT
  • Taiwan reverse cultural colonialism
  • Thailand/Singapore/Vietnam/Malaysia golf,
    sailing, gaming, shopping (short excursions)
  • Europe will become fashionable (Weather impact)
  • USA/Canada will become popular (depends on visa
    procedures)
  • Theme tours to become popular niche markets
    emerging.

12
Why localisation?
  • Language differences in Greater China
  • Lack of confidence in foreign languages
  • Chinese search engines
  • Trust in local presence
  • Customer feels important

13
Localisation pointers
  • Language
  • Information offered in Chinese
  • Website
  • Customer service
  • Keeping in touch

14
Direct Sales
  • Direct Sales
  • B2B The tour operators and travel agents
  • B2C travelling public
  • Internet Marketing
  • The Great Firewall of China
  • Hosting packages
  • Email marketing
  • Local Represetation
  • Selecting a local partner
  • Monitoring performance

15
Satisfying a Chinese client
  • Attention to personal details
  • Understanding cultural sensitivities
  • Knowing your Hans from your Hui
  • Knowing of regional differences
  • Being flexible - adaptable to changes in plan
  • Chinese language information
  • Exceeding expectations

16
Information sources about the China Outbound
Travel market
  • China Contact website
  • www.ccontact.com/resources.htm
  • Chinathe future of Travel conference on
    bilateral tourism with China
  • www.future-of-travel.org
  • China Outbound Project
  • www.china-outbound.com
  • China Business Services
  • www.chinabusinessservices.com
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