China Now. Your future success depends upon it! Presented by Janene Rees May 2015

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1 China Now Your future success depends upon it! Presented by Janene Rees May 2015

2 Introducing.. Janene Rees

3 Why I love China 10 years of visiting China Over 15 trade shows with Tourism Australia and DNSW History and culture The Food The People The shopping The infrastructure The very fast trains

4 Why China? Eastern markets visitors to Australia now equal Western markets and will soon overtake. China alone is estimated to generate $6bn in economic value through inbound tourism to Australia by 2020 China is the third largest source of visitors to Australia behind UK & New Zealand Inbound visitors from China bring in the most $$$ economic value Increased flights from Asia means more visitors

5 China Outbound Market Why China? Chinese consumer took more than 117 million outbound trips in 2014, an increase of 20% from 2013 Approximately 90% of these trips are within the Asia region 56 % of Chinese travelers surveyed had booked their own overseas flights and accommodation. Shopping, the biggest component of trip spend is slowing down as travelers shift spend towards experiences.

6 Why China? China Outbound Market - MICE Mice travelers make up approximately 6% of China outbound tourism market, and it is a higher yield segment of the market. On average, a Chinese MICE traveler to Australia spent more than $6.000 per trip in million mice travelers million by billion USD outbound expected $44 billion USD outbound MICE spend by 2019

7 Towards China 2020 Why China? China is on track to deliver $13 billion in visitor spend by The Leisure segment ( holiday and visiting friends / relatives) is the fastest growing segment and has over taken the Education segment in terms of total spend

8 Relaxation of Visa Policies Why China? Our key competitors are the United States, Canada, the United Kingdom, the Shengen Block, New Zealand, Japan and South Korea Visitor Visa is becoming the critical background as destinations compete for fast growing middle class flexible and independent travelers (FIT) For example 10 year multiple entry visitor visa for US and Canada,

9 Consumer Trends 252 Tier 2 and 3 cities in China (113 million households) The Big 4, Shanghai, Beijing, Guangzhou, Shenzen Chinese high speed rail system is rapidly making 2 nd and 3 rd tier cities more accessible 2 nd tier include capitol cities of each province Chongqing, Chengdu, Wuhan, Xiamen, Tainjin Independent tours account for 50% of all outbound travel from China Consumers born post 1980s are the growth engine for Chinese outbound FIT travel

10 Consumer Trends Traditional media channels (e.g. print) are in decline China had 649 million (.65 billion!) Internet users as of Dec 2014* We Chat has added a feature with transactional capability; We Chat users can send Red Envelopes (electronic cash gift vouchers) to friends and relative. Uptake by over 100 million people Spending on shopping abroad increased by 17% #

11 Top 10 most important Chinese products and services 1. Free Wifi 2.Union pay/alipay 3.Inhouse Mandarin Speaking Staff 4.Translated travel/tourist guide 5.Hotel w=websites in Mandarin 6.Chinese room service options 7.Chinese TV Ptogrammes 8.Chinese Breakfast 9.translated welcome material 10.Chinese newspaper /magazine

12 Trade Missions Key Learnings Trade missions are an excellent way to start Participate in TA & State Tourism Commission missions A great opportunity to meet with many agents Focus building relationships with your top 20 appointments Don t make the mistake of trying to build relationships with every appointment Find out which inbound tour operator the agents work with in Australia Sales Call to Uexpress Shanghai Office Sept 12

13 Inbound Tour Operator Key Learnings Build very close relationships and keep them close Make a commitment to visit inbound tour operators Work with them and together create itineraries that work for both of you Don t be afraid of suggestions- what you think will work probably will Get to know the staff not just Management Always act professional Listen to their needs Always be honest don t over promise

14 Leverage Memberships & Affiliations Tourism Australia State Tourism Authority LPCTR Tweed Tourism operators Gold Coast Tourism Strategic partnerships with tour companies ATEC Symposium and meeting place is a great way to meet inbound tour operators under one roof on one day

15 Build Strong Lasting Relationships Wholesalers Inbound Tour Operator Tour Operators Tour Guides Famils Private Delegations Making Friendships Janene with her interpreter in China (April 12)

16 Online Distribution Ctrip remains the leader elong rapid growth Tunic

17 Online Distribution

18 The Challenges: Consumer In the next 20 years, over half of projected global consumption growth will come from developing economies, the majority in Asia. The shift in buying power in the world economy is driving change.. * Tastes, preferences and communication methods vary significantly across the regions The Chinese Tourist comes in many styles Sophisticated and Savvy Becoming aware of regional Australia Understand food & wine A need for a western experience FIT how do we get them to our products if not self driving Don t under estimate the high end from China * Source: The Boston Consulting Group Imagining Australia in the Asian Century Sept2012

19 The Impact of Social Media & Technology China banned Facebook & Twitter in They use Weibo & Wechat & Youku You need your website translated into Mandarin

20 Smart Phone Obsessed China Sales of mobile phones have more than doubled since 2000 Smart phones are the main point internet access for many and offer advanced mobile communication applications such as WeChat Source: Anchored on Mobile article China Daily 1 Oct 2012

21 The Challenges: Product Making your product China ready- it s the small things that count Look at your product and assess where it best fits the China markets Staff training in greetings, cultural understanding Menu planning Translated collateral Brand reputation is important Work with agents to develop unique tailored offerings Partner with other operators to develop complete packages and full service offerings

22 The Challenges: Product

23 Product Development Example 1. An opportunity was identified- excess demand for Accommodation during Chinese New Year Holiday 2. Approached & met with Toga Hospitality Group to put a package together 3. Rate was agreed upon and package defined 4. Presented to Shanghai Wholesaler and to inbound tour operator in Sydney 5. Discussions lead to package modifications 6. Commitment from both secured and 30 rooms allocated from 8 th -17 th Feb A successful business relationship is born This same process has been successfully implemented previously- Accor Properties

24 The Challenges: Product Attractions must work with accommodation & visa versa Look at what is around you geographically and partner with as many key attractions, restaurants & accommodation as you can

25 To succeed you need.. A passion for and genuine interest in the China market A commitment to building long term relationships A commitment of resources to growing your business in this market To tailor your product or service An adaptable operating model to meet changing market conditions

26 Janene s Top Tips Educate yourself and your staff as much as possible on the China market Tap into Social Media In China Join inbound tour operators on sales calls to wholesalers this is very powerful to have the product, ITO and wholesaler sitting at the same table. Try to Fly with a China airline when visiting china Get to know what each province is known for and the many food types that com from each province

27 Janene s Top Tips If you don t completely understand the culture good old fashion manners will always go over well Subscribe to a Chinese newspaper online Shanghai daily is my preferred publication and keeps me up to date with what is going on in China Be prepared for change and never become complacent. Think about your product and why it is suitable for the China Market

28 Some great resources to get you started Planning for Inbound Success Report Imaging Australia in the Asian Century Report Experience Seekers in China Report

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