China Pulse December 20 th, 2011

Transcription

1 China Pulse December 20 th, 2011 Business Travel in Mainland China and Hong Kong Understanding the Travel & Behavioral Preferences of Business Travelers in Mainland China and Hong Kong

2 Contents Business Traveler Research Asia Pacific, focusing on Mainland China and Hong Kong *Source: ACCOR 2011 China Business Travel Report *Source: Ipsos

3 Business Traveler Research Asia Pacific Objectives: This comprehensive study seeks to better understand the travel and behavioral preferences of business travelers in Mainland China and the Asia Pacific region. Amongst the aspects that the research covers includes the number of trips made by business travelers in the first half of 2011, spend in terms of accommodation and factors influencing accommodation choice. Sample Scale: 10,4 Asia Pacific-based business travelers Date: Between June 2th and July th, 2011 Method: The survey was conducted online Targeted Respondents: All data in this report refers to regular business travelers from Mainland China and Hong Kong.

4 Respondent Profile - Gender Business Traveler Gender by country (%) MAINLAND CHINA HONG KONG Male % Female 2% Male 4% Female % The majority of respondents in both Mainland China and Hong Kong were male.

5 Respondent Profile - Position Job title / position (%) MAINLAND CHINA 4 14 HONG KONG % 20% 40% 0% 0% 100% Owner C-Level Director Managerial White Colar & Below In terms of job title the majority in Mainland China and Hong Kong were managerial level pay grades, or higher.

6 Respondent Profile - Industry Top industries (%) MAINLAND CHINA HONG KONG % 20% 40% 0% 0% 100% Manufacturing Business Services Professional Services Wholesale/Retail Finance Business travelers in the survey worked across a range of industries, with manufacturing, wholesale/retail and business services, finance and professional services predominating.

7 Business Travel - Quantity Total number of International trips taken in the first months of 2011 (%) 1 2 to to 10 to 1 20 to 2 0+ MAINLAND CHINA Mainland Chinese business travelers were also on the road frequently: 1% taking between 10-1 business trips, and 1% taking more than 20.

8 Business Travel - Purpose Purpose of business trips (%) MAINLAND CHINA 2 1 HONG KONG 1 44 Internal Company Business Trade Shows Conventions External Company Business Training Business travelers from Mainland China and Hong Kong were more likely to be traveling for sales and client visits.

9 Business Travel - Planned Average number of business trips taken in the first months Vs. the number planned for the last months of 2011 MAINLAND CHINA HONG KONG. - 1st half nd half st half nd half 2011 Volumes of business travel overall is anticipated to remain strong, as was experienced in the H2 of 2010 and H Asia Pacific Business Traveler_ Research 2011

10 Business Travel Budget / Allowance Average hotel allowance per night (US$) 12 The hotel allowance can be changed according to different circumstances, such as when traveling with someone more senior, flying with clients or flying long haul. Allowance per night (US$) MAINLAND CHINA HONG KONG Circumstances for increasing hotel allowance (%) MAINLAND CHINA HONG KONG Travel with Boss Travel with Client Long Haul No Adjustment

11 Business Travel Hotel Choice Top considerations when choosing a hotel (%) MAINLAND CHINA Location Stayed Before Loyalty Scheme Location HONG KONG Competitive Price Like the Brand For business travelers from Mainland China and Hong Kong, the main reason for choosing the hotel they last stayed at was the convenience of its location. Price competitiveness and previous experience with the hotel and/or the hotel brand also factored strongly. Loyalty is a particularly strong driver for Mainland Chinese business travelers: accruing loyalty points and emotional loyalty to the brand the top 2 reasons after location.

12 Business Travel - Work 2% of respondents from Mainland China and % of respondents from Hong Kong work from their hotel during business trips.. During what time periods do you work? (%) MAINLAND CHINA Midnight 0:00 0:00 0:00 0:00 1:00 1:00 21:00 21:00 - Midnight 21 2 HONG KONG % of business travelers from Hong Kong are likely to work between Midnight and 0:00.

13 Contents Business Traveler Research Asia Pacific, focusing on Mainland China and Hong Kong *Source: ACCOR 2011 China Business Travel Report *Source: Ipsos

14 2011 China Business Travel Report Objectives: The report addresses several aspects including how Business travelers make their choices and how satisfied they are with the following: Airlines and their services Hotels Online Travel Agencies Sample Scale: 400 in total across Beijing, Shanghai, Guangzhou and Shenzhen Date: Oct. 12, 2011-Oct. 20, 2011 Method: The survey was conducted online Targeted Respondents: Business travelers: Aged between 20-0, who have traveled for business purposes in the past months.

15 Business Travel Overview Over the past months, the majority of business travelers have made trips within Mainland China. Meanwhile, 0% of business travelers have traveled abroad in the last months. Those who hail from Shanghai have traveled the most (40%). Total Beijing Shanghai Guangzhou+Shenzhen Domestic business travel 2 0 Overseas business travel 4 1 Sample size= Unit: % S4. Over the past months, have you undertaken business trips with domestically or internationally?

16 Destinations of choice for overseas travels Currently, Hong Kong is most frequented destination by business travelers, followed by Europe and the United States. As a result of the short geological distance and close business connections between Guangzhou, Shenzhen and Hong Kong, the proportion of business travelers from Guangzhou and Shenzhen to HK is significantly higher than those from Beijing and Shanghai. Total Beijing Shanghai Guangzhou+Shenzhen Hong Kong Europe Germany France Britain Holland U.S. Singapore Australia Japan Macao Canada Malaysia Thailand Taiwan Unit: % 4 Sample * size= C1. In the first half of 2011, which countries/regions have you visited whilst on business? Remarks: * represents sample size less than 0, and **, less than 0. Both are small samples.

17 Transportation Means on Business Trips Aeroplanes are the most popular means of transportation. High-speed railways are quickly emerging as a popular alternative to air travel. When addressing overseas business travelers, high speed railways are popular choices, particularly in HK where there is an abundance of inter-city express railways. Additionally, cross border traffic in Europe largely relies on high speed railways. Domestic business travel Overseas business travel Aeroplane Aeroplane 4 High-speed railway 0 High-speed railway 20 Train 0 Train 14 Car 2 Car Coach 2 Coach Ship Ship 4 Sample size= 141 Unit: % A1.During the past months what were your main transportation choices when travelling domestically? A4. What were you main transportation choices when travelling overseas?

18 Budget for private overseas travel The budget for private overseas travel is generally lower than RMB 20,000, with the average budget being RMB 2,. The budget for private overseas travel amongst business people from Guangzhou and Shenzhen is significantly lower than that of those form Beijing and Shanghai. One possible reason for this is that the former travel more to Hong Kong and Macao and the second reason is that given close proximity to South East Asia allows for lower budgets ,000RMB and above 0,001-40,000 RMB 20,001-0,000RMB 10,001-20,000RMB ,000RMB Average= Total Beijing Shanghai Guangzhou+Shenzhen 2, 2, 2, 1,0 Unit: % Sample size= C. Generally speaking what is your budget for private overseas travel? RMB

19 Domestic Business Travel: Most Popular Airlines Air China, China Eastern and China Southern Airlines are the top three airlines chosen by business travelers. Business people from Beijing prefer Air China, while China Eastern Airlines is most popular among business people from Shanghai, and China Southern Airlines is at a premium among those from Guangzhou and Shenzhen. Beijing Shanghai Guangzhou 4 Sample size= Unit: % ºÏ¼Æ Average 2 ±±¾ Beijing Shanghai ÉÏº ¹ãÖÝ+ÉîÛÚ Guangzhou Air China China Eastern Airlines China Southern Airlines Shenzhen Airlines Shanghai Airlines Hainan Airlines China SSS Xiamen Airlines Juneyao Airlines A. Over the past six months, which domestic airlines have you chosen to travel with?

20 Overseas Business Travel: Most Popular Airlines The most popular airlines for Business Travelers coming from Beijing are Air China, Emirates and UA with those from Shanghai preferring China Eastern and Lufthansa. Respondents from Guangzhou and Shenzhen indicated that they preferred to travel on Cathay Pacific, China Southern and Dragonair. Unit: % Cathay Pacific Overseas airlines % UA Dragonair Lufthansa Emirates Air china A. Over the past months which airlines have you chosen for international travel? Remarks: * represents sample size less than 0, and **, less than 0. Both are small samples. 2 4 Domestic airlines 4% Beijing 14 Eastern Airlines Shanghai China Southern Airlines Total Guangzhou Beijing Shanghai Guangzhou and Shenzhen Sample size= 11 4* 2**

21 Private Overseas Travel: Preferred Destinations HK is the most popular destination for private overseas travel, followed by the United States, Europe, and Australia. The percentage of business people from Guangzhou and Shenzhen traveling to HK is also markedly higher than that of those from Beijing and Shanghai. HK U.S. Europe France Switzerland Spain Italy Australia Macao Thailand Malaysia Korea Canada Japan Singapore Taiwan New Zealand Maldives Total Beijing Shanghai Guangzhou+Shenzhen Sample size= C2. In the past months which countries have you visited for private overseas trips? December 20th, * 4* * Remarks: * represents sample size less than 0, and **, less than 0. Both are small samples. Unit: %

22 Popularity of Online Travel Agents Ctrip Qunar Elong Mango Tuniu 1U Kuxun Business people from Shanghai prefer Tuniu, while Mango is more popular among those from Guangzhou and Shenzhen. Website of travel agencies, Air China, etc. CYTS Lotour Uzai Daodao Etpass Qmango Goldenholiday Yoee Sample size= D1. In the first half of 2011, which online travel agents did you use? D2. In the first half of 2011 which online travel agents did you use the most? December 20th, Beijing Shanghai Guangzhou+Shenzhen Unit: % 22 Most Frequently used Have used before

23 Online Travel Agents: Usage Rates The most commonly used online tourism products are information inquiries, ticket bookings and hotel reservations. Total Beijing Shanghai Guangzhou+Shenzhen Information inquiries 0 4 Ticket bookings 0 4 Hotel reservations Member services Purchasing tourism products Making a reservation Unit: % Sample size= D. Over the past six months which services provided by online travel agents have you used?

24 Accommodation Choice for Business Travel Medium and high-level star hotels are the most popular choices for business travelers, followed by budget hotels. Compared with 2010, there has been a slight increase for high-level (4 or ) hotels, and a decrease for medium-level (hotels. Domestic business travel in 2011 Domestic business travel in star hotel 0 star hotel 4 Budget hotel Resorts star hotel Private Hotels/Guest houses/country houses Sample size= 2 4 Unit: % B1. In the first half of 2011 which types of hotels did you stay in when traveling on business?

25 Favored Hotels With regards to the hotels which left the most favorable impressions on business travelers, the Shangri La, Hilton, Marriott, Westin and Sheraton ranked the best. Top2 Favorability= Favorable impression+quite good impression Quite Good Impression Favourable Mercure Aloft Jianguo Hotel Orange Hotel Gehua New Centrury Hotel Grand Mercure Argyle Park Plaza Traders Hotels CTS Hong Kong Grand Metro Park Hotel Novotel Radegast Hotel Four Points by Sheraton Renaissance Hotels Conrad Doubletree by Hilton Beijing Grand Regency Hotel Le Méridien Pullman Crowneplaza InterContinental Ritzcarlton Sheraton Westin Marriott Hilton Shangri-La B. What is you impression of the following hotels? being the highest possible score. Sample composed of people that can recognize the hotel

26 Ipsos in Greater China Greater China, which covers the Chinese mainland, Hong Kong and Taiwan, is a fast-growing and booming market and one of Ipsos s priorities for strategic development. Ipsos entered the Chinese market by acquiring a successful local firm in 2000, and now ranks among the largest survey-based market research companies in China! Ipsos in Greater China has opened branches in Beijing, Shanghai, Guangzhou, Chengdu, Wuhan, Hangzhou, Shenzhen,Hong Kong and Taipei. Now home to more than 2000 professionals. Ipsos in Greater China Web site

27 Charlotte Wang Chief Marketing Officer in Greater China Ben Barber Graphics Specialist, Synovate in Greater China Glacier Xie Assistant Manager,Ipsos in Greater China