Welcoming Chinese Visitors. Are You China Ready?
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- Catherine Jordan
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1 Welcoming Chinese Visitors Are You China Ready?
2 China Market
3 Key Facts Population: 1.54 billion Beijing million Shanghai million Guangzhou million Chinese Travel Demographics Reported Mid 2012: Current major destinations Recent Growth Outbound Travelers: 2010: million 2011: million 2020: 100 million (projected) Hong Kong Macao Japan S. Korea Taiwan China USA Malaysia Thailand Singapore China urbanizing fast -track to growth Projected by 2020 more than 800 urban locations in China will have more disposable income than that of Shanghai China s wealthiest city today
4 Key Facts Traveler Motivators Age: 25-44: 64% Education: BA 70% Gender: 47% Female, 53% Male Monthly Income: 5% of population earn average of $39,500 yearly Sightseeing: 49.3% Leisure / Vacation: 33.48% Travel w/ Family: 46.98% Travel w/ Friends: 23.8% Corporate / Student: 13.66% Travel Info Sources Website: Recommendations: 47.02% Print Media: 30.96% Travel Agencies: 23.57% TV / Video: 19.46% Destination Promo: 13.46% Trip Spending 2010: U.S. $ 5.5 Billion 2011: U.S. $7.7 Billion 2012: U.S $8.8 Billion Source: OTTI & Chinese Tourism Academy
5 Market Approach
6 China Market Approach NEGOTIATING THE CHINESE CULTURE FACE Winning/Losing/Giving Winning FACE = Property Ownership Education Wearing Branded Products Career Wedding/Marriage GUANXI The Art of Building and keeping Relationships
7 China Market Approach UNDERSTANDING THE CHINESE CONSUMER COLLECTIVE NOT INDIVIDUAL RESPECT AUTHORITY PATRIOTISM
8 China Market Approach-Travel Styles Group Tours Enjoy the security and comfort that group travel brings Leave all the organization up to the tour operator Travel is like a check list, ticking off the major sights and attractions Are spectators of tourism, happy to look and not participate Want to see and do as much as possible in a few days Semi FIT Will have a guide or appoint a team leader that has good English skills Travel agent will book flights and first few nights of accommodation Rely on the internet and travel agents for advice Might rent a car but will stick to major cities FIT Travel May use travel agent for flights and visas but will plan most of their trip on their own Research extensively via the Internet Self drive is the preferred mode of transportation More likely to go off the beaten track Want to experience and get under the skin of culture 1 st Time Travelers- 77% Group 23% FIT 2 nd Time Travelers-63% FIT 37% Group Source: China Raady& Accredited
9 Travel Demand Soaring
10 Demand: Individual Travel Experiences Greater interest in in-depth travels by Chinese travellers: Source: Boston Consulting Group: Taking Off Travel and Tourism in China and Beyond (2011)
11 Demand: Individual Travel Experiences
12 What Can we do to Prepare? There is a great need for an educational series to provide guidance to US suppliers looking to access the growing Chinese market
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14 China Ready Program To prepare the US Travel Industry for the increasing Number of Chinese travelers to our destinations. To create a standard level of experience for the Chinese Traveler while they are in the US. To educate the travel and tourism industry of the dynamics Chinese culture
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18 The Model US version is based on the highly successful seminar series -Welcoming Chinese Visitors-launched in Australia in Spring 2013 Over AUS$1.2 Million Dollars spent on Australian program development for industry Program has been tried and tested in market with high satisfaction from Australian tourism industry participants
19 The Seminars Product Readysteps you through the process of ensuring that your product is, first and foremost, export ready. This module is ideal for owner operators looking to explore the merits of engaging with the Chinese Market who also need a base understanding of how to ensure their product is export ready.
20 3 phases Product Ready Phase 1: Export Ready A step by step process to determine if your product is Export Ready for the China Market Phase 2: Market Analysis This is where we look at the Chinese tourism industry itself, and analyze travel trends, economic factors and accessibility to make sure that there is a strong potential for your product with the Chinese market. Phase 3: Product Analysis This is where we guide you through the process of analyzing your product and deciding on how best to position it for Chinese market.
21 The Seminars Sales Readyis the next important step in working through the process to engage with the complex, but lucrative, China market. This module is ideal for sales and marketing staff who are looking to effectively get their products and destinations in front of consumers in China.
22 The Seminars Service Readyensures you have the understanding and awareness to deliver the service and standards that Chinese consumers expect when they visit the US. This session was designed particularly for front-line staff welcoming and servicing Chinese visitors. Sales and marketing personnel will also find this beneficial.
23 The Seminars -Live & On-line In Classroom seminars will be offered to industry in select cities around the country Also web based learning is offered to give access to the courses at all times
24 Where to Next WHERE TO NEXT GUIDE FOR US TOURISM SUPPLIERS Why the guide? To help you take the next steps to realizing your Asian and Chinese inbound market aims, we have developed this Where to Next? guide which will assist you in implementing some of the lessons learned in the training workshop. Use this guide to decide what actions are appropriate for your organization at this particular stage in your engagement with China
25 Thank You
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