The latest changes and trends presented in China s outbound tourism market 中国出境旅游的最新变化和趋势. Rao Tian 3 rd March,2016

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1 The latest changes and trends presented in China s outbound tourism market 中国出境旅游的最新变化和趋势 Rao Tian 3 rd March,2016

2 The latest changes and trends presented in China s outbound tourism market

3 A. Sustained and rapid development of China s outbound tourism market The increasing Chinese outbound tourists : The number of Chinese 50 outbound tourists forecast Chinese residents willing to travel abroad is continuously rising and China s outbound tourism market has big potential

4 B. The scope of tourists outbound travel destinations expanded rapidly expanded rapidly from the neighbour countries and areas of China to remote destinations 70% percent visitors go to Hongkong and Macao most popular destinations : Hongkong and Macao, South Korea, Japan, Thailand, Singapore, Taiwan, Indonesia Europe : Tourists visit the entire Europe, but the number varies in different regions

5 C. The development of popular travel destinations in Europe Top destinations: France, Switzerland, Italy, Germany Secondary destinations: The United kingdom, Scandinavia countries, Spain, Greece, Russia. The groups growth rate is astonishing. Central and eastern Europe follows: Hungary, Czech, Slovakia, Poland, etc. Balkan and Baltic regions have a promising prospects

6 D. Overall and latest trends in packaged tours to Europe Tourists travel concepts become mature gradually Overall trends of Packaged tours products: from rough to delicate from Routinization to individuation from Group to FIT 03

7 D. Overall and latest trends in packaged tours to Europe Packaged tours Products: from multinational rough tours to mono in-depth tours after 2011 from major cities or famous tourist spots to experience local lifestyle mono in-depth travel days extend from 7-8 days to days

8 D. Overall and latest trends in packaged tours to Europe a big increase in various themed tours with specific interests: study tours, outdoor activity tours, health tours, art tours, nature photograph tours, wedding and honeymoon tours, hunting tours, shopping tours,etc. tourists focus on satisfaction, not the price big opportunities for travel industry how to show and meet their needs

9 D. Overall and latest trends in packaged tours to Europe group travelers profile: covering all ages and all industries, come from major cities the biggest proportion of group travelers: middle-aged and elder people younger visitors prefer self-guided tours female decide while male pay

10 D. Overall and latest trends in packaged tours to Europe outbound consumption : Data from January to October in Yuan RMB per person (800 Euro) 53.6% 55.8% shopping Chinese tourists main purpose shopping in the total outbound consumption

11 D. Overall and latest trends in packaged tours to Europe more free time arrangement in packaged tours Land operators should try to find out the comprehensive packaged tour solutions( one day or half day optional tours),which combined with unique experience, food and shopping.

12 D. Overall and latest trends in packaged tours to Europe Hotel option : mainly :3*- 4* a substantial increase : 4* a certain degree of increase : 5* Air transportation : More new routines between China and Europe encourage group travel Chartered flights provide sufficient capacity and more choices Eg : Liege, Belgium; Birmingham, UK; Copenhagen, Denmark

13 The latest changes and trends presented in China s outbound tourism E. Rapid growth in FITs 2015 statistics summary Market scale: 930 billion RMB ( 130 billion Euro) FIT Growth China 16.7% rate Others 5.6% China Tourists number FIT number total 80 million 120 million

14 The latest changes and trends presented in China s outbound tourism E. Rapid growth in FITs Popular FIT destinations: Japan, America, Thailand, Korea, France, new Zealand, Australia, Russia,Hongkong, Macao Primary tourists: 31.54% 22.38% the 1980 s the 1990 s

15 E. Rapid growth in FITs 71.2% of FIT travelers expect to acquire complete travel solutions based on onestep purchase services, to shorten the decision making process. one step purchase : air tickets accommodations local transportations visa insurance local package tours

16 E. Rapid growth in FITs Want to share information, sightseeing strategy, make friends FIT Products: diversification, fragmentation, free combination Some booking will take place in the destination in near future FIT Products themes: self-driving, outdoor sports, photographing, authentic life experience, etc.

17 E. Rapid growth in FITs Accommdations: 21.8% tourists choose local accommodations and apartments rather than star-level hotels; while 3.56% tourists book 5 star hotels. Transportation: more self-driving, high speed train pass, city pass Self-driving average costs 2857 yuan RMB per person in 2015 car rental period average lasts 6.3 days, increasing 23% than 2014 Reservations: 42 days before departure, 5 days earlier than FITs are more sensitive in currency rate.

18 F. Easy visa application process stimulate Easy visa application process make Chinese tourists choose Europe or America as their first time outbound destinations. People welcome long term multiple entry visa. Eg: USA and Canada multiple-entry visas up to 10 years United kingdom multiple-entry visas 2 years Turkey electronic visa policy leads to the blooming in 2015 The biological finger scan of Schengen visa may restrain Chinese group travel in short terms.

19 G. The integration development of the internet and tourism People acquire and share information more conveniently on Internet and mobile. The online travel agents are expending fast. on line travel market turnover : billion RMB (42.6 billion Euro) in 2014 The young generations are more reliant on the online consumption. Traditional sales offices and online sales are both important channels for information release and purchase. stimulate a brand new business mode for tourism enterprises.

20 02 How to attract Chinese tourists to visit CEE countries?

21 02 How to attract Chinese tourists to visit CEE countries? A. The profile and characteristics of tourists travelling to central and eastern Europe at present 15% 5% Middle-aged and senior above 55 50% 30% The middle-aged from 35 to 54 Young-middle from 18 to 34 Youngsters under 18 based on CITS group data

22 02 How to attract Chinese tourists to visit CEE countries? B. What makes tourists decide to visit CEE countries? Splendid culture and long history 01 Natural landscape and local custom 02 Security and convenience Reasonable price 05 Elder people with socialist memory 06 Shopping and entertainment

23 02 How to attract Chinese tourists to visit CEE countries? C. The suggestions for tourism promotion in China To strengthen the promotion of destinations on a national level to establish concise slogan and clear image for Chinese tourists to release distinguishing travel themes in different period Promote in different means, online or offline, while targeting different people to organize roadshow for media and travel agencies to promote in major cities first, and 2nd and 3rd tier-cities in the following step

24 02 How to attract Chinese tourists to visit CEE countries? C. The suggestions for tourism promotion in China Cooperate with Chinese travel agencies on significant tourism themes designing and packaging specific products To Promote through traditional media forms as well as we-media micro blog and wechat We-media: a particular marketing and news releasing channel, is well accepted and relied by the new generation. Considering the great development of new-media(micro blog and wechat)

25 02 How to attract Chinese tourists to visit CEE countries? C. The suggestions for tourism promotion in China The combination of entertainment industry and tourism promotion to create a favorable environment for the FITs. to provide more information in Chinese on websites. simplify visa application process.

26 THANK YOU Rao Tian

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