China Readiness Training
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1 China Readiness Training
2 Agenda I. Chinese Tourism Opportunity II. Trends and Traveler Preferences III. The Case for China Readiness IV. Brand USA China-Ready Program
3 Summer 2016
4 Summer 2016
5 Summer 2016
6 Summer 2016
7 Summer 2016
8 Summer 2016
9 Summer 2016
10 The Chinese Tourism Opportunity
11 China Outbound Tourism Boom
12 Top Spending Tourists Worldwide
13 Number in Thousands United States Chinese Inbound Growth , ,190 1, ,474 1, Arrivals in United States from China, Source: U.S. Department of Commerce, National Travel and Tourism Office
14 United States Visitation Expected to Triple by 2020 Mainland Chinese Arrivals in USA Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Chinese visitors to the United States grew by more than 83% from 2010 to Visitation is expected to TRIPLE by 2020 to 5.7 million visitors! Source: CLSA
15 Highest Spenders in the United States
16 Tourists Planning to Spend More in Next Year
17 10-year Visa Policy In 2014, China and U.S. reached a bilateral agreement to issue 10-year tourist and business visa to each other s citizens. Visa applications have risen approximately 50% since the announcement Wait times for a visa interview have remained low at all posts in China
18 U.S. China Tourism Year
19 U.S.-China Tourism Year Announced by Presidents Obama and Xi in September Led by the Department of Commerce and the China National Tourism Administration Aims to effectively position the United States and China for increased trade in travel services by focusing on: Enhanced travel and tourism experiences Enhanced cultural understanding Enhanced appreciation of natural resources
20 U.S.-China Tourism Year Brand USA efforts focused on: Educating (China Readiness Programs, USA Discovery Program, Training Events) Promoting (USA Campaign, Co-op Programs, MegaFams, Sales Missions) Sharing (Best Practices) Key Events: Opening Gala in Beijing in conjunction with Brand USA China Sales Mission Shanghai Disney opening celebration 2016 U.S.-China Tourism Leadership Summit: September 8-12, 2016; Ningxia, China Closing Event in late November, and more!
21 Chinese Traveler Trends
22 Tourism Patterns are Shifting Hats & Flags Road trips Two-star hotels Four/five-star hotels 10 days, 10 cities National Parks Tour buses Foodie Tours
23 Unpacking the Package Tour Accommodation Accommodation Flight Local Tour Tour All Inclusive Package Flight Semi-FIT Package
24 60/40 Group/FIT Chinese FIT market is growing 3 times faster than global average US PCH Highway is the No.1 popular itinerary for selfdriving FITs
25 Self-Drive Market is Booming Source: MaFengWo Report 2016
26 100% Independent Control The FIT market is only going to grow. They have 100% control of their hotel, transportation and itinerary. Multi-generation family groups will lead the growth. Source: China Luxury Advisors China Tour Operator Interviews, May 2016
27 70% FIT by 2021 We are seeing a ratio of 40% group travel and 60% FIT. I expect FIT to grow to 70% within five years. Source: China Luxury Advisors China Tour Operator Interviews, May 2016
28 The Case for China-Readiness
29 Chinese Tourist Challenges Cultural Concerns: Language & difficulty of obtaining information Lack of context Lack of trust Security concerns Practical & logistical concerns: Payment Connectivity Navigation Information access Time challenged Comfort & cultural: food, language
30 Chinese Payment Systems Present Challenges
31 Isolated Internet/Mobile Platforms Source: Kantar Media CIC
32 Complex Travel Trade Ecosystem
33 Tourists Demand China-Readiness Develop unique, experience driven products tailored to the interests of Chinese visitors. These products must be China Ready, meaning they are designed and developed specifically for the market.
34 Tour Operator Recommendations Travel destinations should design products that are both authentic to local culture and tailored to fit the taste of Chinese travelers. Chinese travelers prefer those activities that will enrich their life experience or foster learning.
35 China-Ready Programming
36 Brand USA- China-Ready Programming To support DMOs and their members to become China-Ready, Brand USA presents a series of specific initiatives: Online tool kit Chinese tourism white paper Six regional seminars: introducing the Chinese tourism opportunity and China- Readiness, practical tools for DMO members to market, serve and build loyalty. Webinars
37 Sample Learning Modules China-Ready Essentials Understanding the Chinese Travel Trade Attracting Chinese Visitors Digital Marketing for Chinese Visitors Service Excellence for Chinese Customers Attracting Chinese FIT Customers Recruiting and Managing Mandarin Speaking Staff Closing the Sale with Chinese Visitors Preparing for Chinese New Year Chinese Visitor Best Practices
38 Sample: Becoming China-Ready Amenity/Service Must-Have Nice to Have Chinese language map/materials Chinese language content on website Accept China UnionPay/China UnionPay ATMs Audio tour in Chinese Mandarin speaking staff Chinese food/drink options (if applicable) Free wi-fi Way finding/signage in Chinese Chinese subtitles on videos X X X X X X X X X Chinese social media accounts (Weibo/Wechat) X
39 Example: China Ready Seminar
40 Example: Preparing for Chinese New Year
41 Example: Preparing for Chinese New Year
42 Example: Preparing for Chinese New Year
43 Assessing Your China Ready Needs What is Chinese tourist traffic in your destination today? How will it change in one year? Five years? What are your stakeholder needs? What type of training modules best fit your members? When is the right time to invest? When to expect ROI? Are there existing resources/successes in the market? There is no one-size fits all approach. Every destination needs to evaluate and implement according to their unique needs today and with a look to the future.
44 Thank You For more information on China Readiness Seminars with Brand USA please contact your Partner Development Representative. Renee Hartmann Sage Brennan Co-Founder, China Luxury Advisors Co-Founder, China Luxury Advisors
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