Korea Market Update FIT market Online travel agents Low cost carriers

Transcription

1 Asia Market Update

2 Korea

3 Korea Market Update Three Key Outbound Travel Trends in Korea -- rapid growth in: FIT market 2013 brings a growing focus on high-spend FITs Online travel agents HotelPass, Interparktour, HotelnJoy etc. Non-Korean OTAs like Expedia gaining traction Low cost carriers Linked to the growth of OTAs

4 Korea Market Update Hawai i Travel Trends 26.3% increase in Korean arrivals in 2012 to date Rapidly growing number of Koreans to the neighbor islands Maui and Big Island arrivals each up over 21% in 2012 YTD from Korea Longer length of stay reflecting the increase in Korean FIT travelers Hawai ian culture boom with growing passion for ukulele, hula, festivals, and food

5 Korea Opportunities I Increased airlift Asiana Airlines launched daily service from Seoul to Honolulu on July 10 Hawaiian Airlines launched daily service from Seoul to Honolulu on July 16 36% increase in air capacity as a result of these new flights The Korea market now has four daily flights served by three airlines

6 Korea Opportunities II Weekday Departures 2013 will see a 64% in weekday departures versus 2011 given 2 new daily services launching July 2012 The Korea office will be aggressive in implementing promotions to fill these weekday departure seats together with all major Korean travel agents The increase in FIT travelers, OTAs and hotel-booking sites are increasingly important aspects of Hawaii promotions

7 Korea Opportunities III Fuel Surcharge Fuel surcharges on the Seoul-Honolulu route have been decreasing steadily since May: Month Cost % Chng May $372 - June $ % July $ % August $ % Family of four -- $1,500 in May vs. $1,000 in August

8 Korea Opportunities IV First Time Visitors from Korea Year First Time Visitors % out of total Koreans 2012 (YTD) 85.5% out of total Koreans Hawai i has huge potential to build a strong repeater market -- as in Japan -- and this will become a major opportunity over time to generate incremental visitor numbers out of the Korea market

9 Korea Opportunities V Rapidly Evolving Hawai i Travel Product Diversification of hotel accommodations Koreans are now using all major Hawai i hotels from our most expensive to our budget hotels Availability of neighbor-island inclusive airfares means a rapidly increasing number of Korea packages include the neighbor islands Introduction of new neighbor-island hotels and attractions

10 Korea Opportunities VI Increased Demand from 2 nd -tier Cities With the rapid increase in Korean airlift to Hawai i, the number of Korean visitors from Busan and other 2 nd - tier cities is dramatically growing Example: as a result of a Hawai i promotion in Busan this spring shoulder season, the number of pax out of the Busan region increased by over 130%

11 Korea Opportunities VII Airlift from Busan The demand for Hawai i from Busan and the Youngnam region continues to show rapid growth Airlines feel it is too early to fly direct to the neighhor islands, however charter flights will become more realistic once agents are willing to commit Need to work on increasing awareness and visibility of neighbor islands in the Korean market to convince the Korean travel trade about charter potential

12 Major Korea Challenges Challenges in Growing Arrivals to Hawai I 1) Perception of lack of hotel rooms on O ahu 2) Lack of Korean tour infrastructure on the neighbor islands: limited Korean receptive operators and need for more neighbor island education of Honolulu-based receptive operators 3) With the continued global economic recession, spending on long-haul MICE programs by Korean corporations remains tight

13 2013 Korea Marketing Plan Must address Challenges and Opportunities Co-op with airlines to fill huge capacity increase Weekday promotions FIT campaigns OTA co-ops Neighbor island promotions & education Boost Busan investment Continue to target High-end MICE groups

14 What s New 2013 SNS Campaign Launch (Jan): create SNS campaign from January to generate greater on-line buzz for Hawai i throughout Korea SNS Specialist Promotion (Mar): bloggers to send to Hawai i select power Hawai i Media Mission (Sept or Oct): conduct 1 st media mission including seminar and reception to educate Korean media partners with the most up-todate information on Hawai i (Participation fee: around $2,000)

15 Festivals 2013 Mele Mei Festival (May) Hawai i Food & Wine Festival (Sept) Kona Coffee Cultural Festival (Nov) Arrange media visits to introduce Hawaiian cultural themes such as music, hula, gourmet and coffee and boost awareness for these signature festivals Develop festival related tour products working with travel agents and airlines in Korea

16 Core PR Programs 2013 Last year, 620 Korean media featured Hawaii $33.8 million in unpaid media value 291 million impressions For 2013 the PR focus is on: Heritage Sites: introduce signature heritage sites on 6 islands via the monthly e-newsletter, Korea SNS campaign, press releases So Much More Hawai i Mahalo Month

17 Travel Trade Campaigns 2013 Neighbor Island Promotions: to continue to boost neighbor island overnight stays Weekday Departure Promotions: to secure high load factor surrounding airline weekday departures Educational Seminars: to introduce diverse accommodation and activity options in Hawai i, HTK will continuously hold destination seminars throughout Korea

18 Korea MCI Market Update Strong Growth: 73% Year-on-year growth in MICE arrivals 2012 to date Incentive groups starting to spend 1-2 nights on neighbor islands Target Segments Corporate Incentive Trips: corporate reward trips are the biggest target Hawai i MCI in Korea Target Industries: sales, High-tech Insurance, Finance, Door-to-door

19 Korea MCI Market Update 2012 Sample Incentive Groups LINA Life Insurance: PCA Life Insurance: BC Credit Card: ING Life Insurance: Nu Skin Korea: 600 pax in April 500 pax in April 240 pax in June 2,000 pax in November 600 pax in November

20 Korea Opportunities to Partner 2013 TRADE SHOWS Asia Travel Mission May Hana Tour Travel Fair May TRADE FAMILIARTIZATION TRIPS (FAMS) Asia Super FAM Late February Busan Agent FAM June PRIME FAM June FIT Travel Agent FAM November Destination Seminars TRAVEL TRADE EDUCATION January, February, October

21 Korea Opportunities to Partner 2013 E-Marketing Campaigns CONSUMER PROMOTION March, June, November Network TV Filming SNS Specialist FAM Individual Media Visit to Mele Mei Festival / Hawaii Food & Wine Festival / Kona Coffee Festival Golf Media FAM Media Mission PUBLIC RELATIONS June or September March March, September, November November or December September or October

22 2013 Korea Summary Airlift capacity up 16% in 2013 versus 2012 Targeting 20% increase in Korean arrivals in 2013 Strong growth from Busan & 2 nd tier cities Growing numbers of Koreans to the neighbor islands More will book via OTA and hotel booking sites Competition will lead to a decrease in the selling price of Hawai i packages, bringing Koreans who otherwise might have gone to shorter-haul/less-expensive destinations Increased number of Korean MCI visitors, targeting 100% increase in Korea incentive groups to neighbor islands

23 China

24 China Market Update Key Outbound Travel Trend The U.S. Visa Barrier has fallen significantly in 2012: 2012 US visa applications up by more than 40% over % of visa applications approved Average wait of 8 days to schedule a visa interview, compared with more than 50 days this time last year

25 China Market Update 3 Key Hawai i Travel Trends Hottest market for Hawai i in 2012 year-to-date China Arrivals up 43% year-on-year More Hawai i-only packages Visitor days more than doubled, up 125% year-on-year Chinese are Hawai i s #1 spenders of any source country at $382 per Chinese visitor per day in Hawai i Chinese expenditures in Hawaii in 2012 have more than doubled versus 2011 up 135% year-on-year

26 China Opportunities 1) Gradually Increasing Airlift: China Eastern load factors in high 90% Operating two additional charter flights on Sep 30 and Oct 7 Launching third weekly flight on December 30 th As a result, 2013 airlift up 40% over 2012 Possibility of adding fourth weekly Honolulu direct service as early as April 2013 Hawaiian Airlines Incheon and Fukuoka services have potential to supply 15,000 additional seats to the China market in 2013

27 China Opportunities 2) New Product Development: Chinese travel agents are actively packaging new hotels, attractions, transportation partners on all islands 3) Image: Hawai i s position as a world-class destination for Chinese becoming increasingly established: $50 million in unpaid media coverage targeted for 2013 Won Best Island Destination award in the annual China National Geographic Traveler tourism awards 4) Shopping Promotions: real opportunities for Hawai i s shopping centers to promote themselves to Chinese outbound travelers

28 Airlift: Major China Challenges Insufficient lift to meet the growing demand Airfare fluctuations have a major effect on the Chinese market: without seat block agreements with the airlines, wholesalers are less interested in selling Hawai i in the peak season O ahu Accomodation Availability: 50% of Chinese travelers choose mid-range Hawai i packages but mid-range accommodations are not easily available in the 2012 high season Destination competitors: Short-haul warm island destinations - Phuket, Guam, Bali Aggressive advertisers in China - Australia, New Zealand, Canada

29 2013 China Marketing Plan Address Challenges and Opportunities Co-op with China Eastern to ensure launch of fourth flight in 2013 Co-op with agents to ensure continuing high loads Train and educate agents to ensure higher quality tour products with an emphasis on Hawai i-only packages Expand number of co-ops with one-stop carriers Aggressively pursue new carrier candidates Continue to expand on-line and off-line visibility for all six islands of Hawai i

30 Airlift Development I China Eastern: drive China Eastern s Honolulu Route Frequency to 4 times weekly and more: Joint Fam Tours covering neighbor islands to develop highend multi-island tour packages Joint Ad campaigns to promote short-term visitor numbers and secure a high load factor Joint Road Shows with key wholesalers Special seat sale fares to boost low season load factors Work with key wholesalers to organize Fam tours and incentive groups to Hawai i

31 Airlift Development II Hawaiian Airlines: develop powerful one-stop pipeline via Hawaiian Airlines Incheon / Fukuoka seat block program in 2013 Work with new Hawaiian Airlines GSA offices in Beijing and Shanghai Encourage Hawaiian Airlines to initially launch direct nonstop charter flights

32 Airlift Development III Air China: push Air China to develop Hawai i holiday charters in peak season as precursor to regularly scheduled service out of the Beijing market: Develop pent-up demand in North China market with top wholesalers in both first and second tier cities Encourage industry partners to use Air China s Beijing to Korea and Japan flights to connect to Hawaiian Airlines and United Airlines services to Hawai i Joint Ad campaign with Air China and its top agencies to promote Hawai i tour packages in North China Joint Fam tours with Air China to visit key suppliers in Hawai i covering neighbor islands

33 Travel Trade Education in 2013 Trade Newsletters Daily sales calls Monthly workshops/seminars Quarterly road shows Annual Mission Hawai i Travel Specialist training program in 2013 Leading travel agents Hawai i tour product planners invited to Hawaii for full week training course and post-fam tour Hawai i Travel Specialist Certificate granted to those completing the full program Hawai i Travel Specialists recognized as qualified to promote tour package sales to sub-agencies or clients

34 New Product Development The keyword is new Hawai i only packages: Island combinations 15% of Chinese visitors now visit the Big Island while 13% visit Maui Theme packages -- shopping, golf, romance, Chinese New Year Pro Bowl Selling points: World-class shopping in an island paradise Unique festivals, events, sports, attractions Variety of world-class hotel and attractions choices

35 China PR Programs in 2013 Target $50 million in unpaid media coverage in China in 2013 For 2013 the PR focus is on: Food & Wine Festival Mahalo Month Heritage Sites So Much More Hawaii Signature events Expand focus on on-line media -- social media platforms are booming in China the Hawai i Tourism China blog has already attracted 43,000 real followers

36 China MCI Market Update Targeting 30% growth in Chinese incentive travelers in 2013 China Incentive program motivating Chinese MICE agents to include the neighbor islands in incentive itineraries Monthly MICE training throughout China to key MICE agents and corporates Target industries: Healthcare Medical, Nsurance Finance

37 MCI Market Update 2012 Sample Incentive Groups Sparta Training: Ping An Insurance: AXA Insurance: Dongfang Bojie: Canon China: Red Bull: 427 pax 195 pax 151 pax 130 pax 98 pax 91 pax

38 China Opportunities to Partner TRADE SHOWS Asia Travel Mission - China May Guangzhou Int l Travel Fair US Tourism Industry Road Show China Incentive,Business Travel &Meetings Exhibition March TBC September TRADE FAMILIARTIZATION TRIPS (FAMS) Asia Super Fam Trade and media February Media Fam General/ Family May PRIME MICE Fam June Media Fam Outdoor/ Romance October/ November China Eastern Airlines Fam November

39 China Opportunities to Partner TRAVEL TRADE EDUCATION Trainings & Seminars Monthly Joint Agent Road Show July Campaign with Airlines & Wholesalers December China MICE Year-end Appreciation Event December Social Media Promotions PUBLIC RELATIONS All Year Round CONSUMER PROMOTIONS Hawai i Travel Guide June/ July So Much More Hawai i Consumer Promotion TBC

40 2013 China Summary 2013 non-stop Airlift up 40% over 2012 Targeting another 40% increase in Chinese arrivals in 2013 Targeting over $400 per person per day spending in 2013 Working to double number to the neighbor islands in 2013 Rapidly growing number of Chinese MCI visitors in 2013

41 Taiwan & The Philippines

42 Taiwan Opportunities Growing Market: 42% increase in arrivals in first half of 2012 Constantly growing MICE business US Visa Waiver: US Visa Waiver is expected in November Travel to the USA will increase by at least 30% annually Direct non-stop flights to Hawaii expected to resume in once US Visa Waiver is granted MICE travel will increase as the main obstacle to large incentive groups applying for visas and the cost of the visa fee are removed

43 Philippine Opportunities Third Asia market (after Seoul and Shanghai) with direct non-stop airlift Rapidly growing number of Hawai i leisure packages no longer just a VFR market 2 major Agent Fam Tours every year with Hawaiian Airlines since its direct non-stop flight to Manila in 2008 Strong airline support for PRIME (Hawaiian Airlines and Delta Airlines) Celebrity Philippine Chef joining Hawai i Food & Wine Festival 2012 with major Philippine media coverage

44 How to Ride the Asia Wave?

45 Asia Outreach Opportunities to Partner see handout Hawai i Tourism Asia Newsletter your key source of information Press Releases 10/month in 3 languages Newsletters 3 separate newsletters Website Content 3 separate websites Asia Super Fam 50+ Asia agents Asia Travel Mission Korea & China in May 13 Workshops/Seminars held monthly across Asia brochure & giveaway distribution Fam Hosting 20+ options during the year

46 Mahalo!