Korea Presentation 2014 Hawai‘i Tourism Conference August 28th, 2014 Hawai‘i Tourism Korea

INSIDE KOREA

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Outbound Travel Market Size

In 2013, the number of Korean outbound travelers reached 14,846,485. This is truly remarkable for a country with a population of only 50 million

¼ of Koreans travel overseas each year, the highest ratio of any nation in the world

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Korea Outbound Travel Update

China, Japan and SE Asia dominate over 80% of outbound travel from Korea

Short haul travel:

Less economic pressure on budget

Koreans’ tend to take holidays of less than than 5 days

Long haul travel: Koreans who have already experienced intra-Asia trips are keen to explore other parts of the world including the U.S. or other long-haul destinations

Source: KTO (2013) *The statistics for European countries are not included

“Where do Koreans Travel”

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Korea Target Market Segments

Single Females

Golf

Wellness Family

Silver

Honeymoon

• Over 45% of Koreans traveled with families

Family

• 60% yearly growth rate in the number of Korean golfers going overseas

Golf

• 645,660 Koreans married in 2013

Honeymoon

• Korean consumers over 60 emerging as new big

spenders

Silver

• Healthy lifestyles and higher quality of life are

popular themes in Korea

Wellness

• “Gold misses” enjoy treating themselves

while traveling

Single Females

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Internet Usage Rate and Internet Users

One of the highest technology penetration rates in the world

Internet usage rate is 84%

Increase of Internet usage by silver generation

The Internet usage rate of Koreans aged over 60 is estimated at 27%, a 2.4% increase from the previous year

• Source: We Are Social's Snapshot of Key Digital Data & Statistic (US Census Bureau, InternetWorldStats, Facebook, ITU)

2013 Survey on the Internet Usage (Korea Internet & Security Agency)

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Strategies for Hawai‘i

Marketing Strategies

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Core Strategies

Strengthen Travel Trade Leadership elevate the Korea team’s leadership of the Korean travel trade to direct and motivate key Korean travel trade to impact the market

Expand Airlift Development Strategy create an expanded airlift development strategy to stimulate more direct air services from Korea to Hawai‘i

Expand Social Media Promotions develop an even stronger online/mobile presence for Hawai‘i in Korea via a dynamic mix of social media and on-line promotions in the Korean market.

Develop New Market Segments develop new market segments for Hawai‘i, such as Edu Tours for children and their parents, luxury FIT family travel, silver travel and the young FIT market to encourage a wider range of segments to select Hawai‘i

2015 Strategies for Leisure

2015 Goals

Target New Market Segments Romance: work with major and niche romance travel trade to continue

developing Korea’s romance market for Hawai‘i by positioning it as the leading overseas honeymoon and romance destination for Koreans.

Family: stimulate continued growth out of the Family market to leverage its

significant spending power, working with travel agents to promote various family-friendly activities

FIT: support and target one of the fastest growing market segments by

working with FIT/online specialized agents to stimulate the FIT market.

SIT: establish new niche markets in Korea via various promotional activities

including “Signature Festivals,” “Gourmet,” “Shopping,” “Wellness” and “Education” to target the SIT market.

Culture & Sports: promote and utilize the rich cultural & sports resources

of Hawai‘i, working with travel trade industry partners to develop culture & sports-related tour products for the Korean market.

Goals

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Promote Hawai‘i’s Host Culture, Customs & History:

in view of the deep cultural, historical, and language ties that bind the Korean market to Hawai‘i and the resulting deep connection to Hawai‘i’s host culture, marketing Hawai‘i as a world-class tourism destination in Korea will influence travelers to fully appreciate Hawai‘i’s multi-cultural diversity and origins.

Airlift Promotions:

Goals

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2015 Goals

work aggressively with KE to stabilize the current flights to Hawai‘i, including the daily KE053 and the three weekly KE051 flights

work with OZ to stabilize the current five flights a week via OZ232 and press for the launch of LCC service from ICN to HNL in coming years

work with HA to support HA’s five flights a week via HA460 by various co-ops targeting an increase in individual tours during weekdays and targeting budget travelers

work with LJ to launch the flights successfully to HNL

Objective: to successfully support Jin Air’s ICN – HNL route which will launch in 2015, to secure stable load factors, and assist Jin Air’s introduction to the Korea market

Details:

With the launch of new air lines on the ICN-HNL route in 2015, the Korea team will conduct a large scale promotion to support Jin Air

As Jin Air is known as a reasonable price airline, the Korea team will target FITs and young generation (early to late 20s) travelers

The Korea team will conduct various promotions such as Fam tours, advertising campaign, TV Home Shopping promotion and sales incentive promotions

Travel Agents and Hawai‘i Partners

LCC Launching Event with JIN AIR

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Travel Trade Tactical Programs

Objective: to build close relationships between Hawai‘i partners and Korea travel trade industry partners via one-on-one meetings

Details:

organize the Hawai‘i Travel Mission in October and invite Hawai‘i partners to Korea to meet major travel agents in Seoul and Busan

provide Hawai‘i partners the opportunity to meet one-on-one with key travel industry partners in Korea in more in-depth off-site workshops

Hawai‘i Off-site Workshop & Travel Mission in 2015

Korea Travel Industry Partners Hawai‘i Partners

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Travel Trade Tactical Programs

Objective: to leverage Hawai‘i’s image as the perfect destination for Sports and to develop new tour packages for Korea market

Details:

promote Hawai‘i as the best sports destination through its significant sports events

work with travel industry partners to develop tour packages including sports events and promote the packages via their online/offline marketing tools to generate Hawai‘i sales

also work with media to maximize exposure of sports events through online/offline channels

The Korea Team Travel Trade: work with Travel Industry Partners in Korea to promote Sports events PR: work on press releases about sports events in Hawai‘i

Korea Industry Partners Develop tour packages including sports events Promote tour packages via online/offline marketing channels to stimulate sales

Sports/Festivals Promotions : Pro Bowl, LPGA, Marathon, Surfing and Golf

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Travel Trade Tactical Programs

Celebrity Endorsement Program

Research from Charles Atkin and Martin Block suggests that

“celebrities may help advertising stand out from the

surrounding clutter.”

Nominate celebrity ambassadors for each target market

Celebrities are extraordinarily influential in Korea because

they are also known to be trend leaders. Travel destinations

visited by celebrities are more likely to be given

consideration for future visits by highly trend-conscious

Koreans

Utilize Hawai‘i Celebrity Ambassadors to promote each

market through various marketing activities such as

magazine photo shoots and Festival Promotions, etc

• An Active celebrity

FIT

• A celebrity Family

Family

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Communication Tactical Programs

Integrated TV Filming Project

Objective: to promote Hawai‘i through the national TV network and top cable TV which play a significant role in inspiring Koreans to travel to destinations where an episode is filmed

The Korea team is negotiating with all major Korean TV production companies to create another Hawai‘i project in 2015 to generate massive PR value and highlight a variety of attractions targeting Korea’s FIT market.

The TV Filming project will be linked to the actual FIT tour product development to lead actual arrivals to follow the TV show.

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Communication Tactical Programs

Hawai‘i Media Day

Objective: to provide opportunities for Hawai‘i partners to build close relationships with Korea’s key media and work closely on future media tie-in promotions

Host 'Hawai‘i Media Day' in Korea where Hawai‘i partners in

charge of public relations will have an opportunity to meet

with Korean media in person

Suggested Month of the Event: August

Unlike travel missions, Hawai‘i Media Day will be more

effective and productive on a small scale as invitees from

both online and offline media will not be actively attending if

the event is too large or long

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Communication Tactical Programs

Facebook (Hawai‘i Tourism Korea)

URL: http://www.fb.com/GoHawaiiKR

Facebook, the Most Influential Social Media Platform: Facebook ranked the most used platform for 3 consecutive years HTK Facebook page ranks 5th of international destinations in Korea Postings uploaded on a daily basis with everyday interaction with fans

Hawai‘i Facebook, SNS Platform in Korea

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Digital Tactical Programs

Objectives: Invite key corporate accounts that can influence the

selection of MCI destination Develop strong relationships and connections to

Hawai‘i with key decision makers from corporate. Details: Invite 40 people: about 10 corporate end-users and

their family Two-day workshop Cultural activities and programs such as Hula and

Ukulele lessons, lei-making sessions Networking sporting events such as golf In-depth destination presentations from an MCI

perspective Hawai’i quiz event

“Hawai‘i Day” Corporate Workshop

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MCI Key Initiatives

New Initiatives

New Initiatives (1) Edu Tours

English Education and Leisure Tours = EDU TOURS

Objective: to generate new market for English education among Korean family sector. This is a combined program for kids and moms, so called Edu Tours.

Background information:

English-learning is highly prioritized in Korea

Many English institutions often host summer & winter English camps abroad

English speaking countries in Asia, like the Philippines, face crime and safety issues

Korean moms are looking to USA and Canada for English education

Hawai‘i is half-way between East and West, so is an optimal place in terms of proximity

Promote Hawai‘i to children’s English institutes that have over 100,000 students nationwide

Coordinate Edu Tour products with airlines and travel agencies

Involve local institutes and partners

Hawai‘i Edu Tours Launched

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New Initiatives (2) We Are Aloha Friends (ALFs)

ALFs Promotion : Target Young Generations as one of Hawai‘i Ohana

Details:

Out of all Internet users in Korea, more than half (55.1%) are also SNS users

94.4% of Korean SNS users access “profile-based SNS” channels

Young generations = Active SNS users who share information

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New Initiatives:

Recruit college students and college graduates longing for

hands-on job experience and off-campus credentials by

giving them the opportunity to take part in online/offline

events and campaigns while incentivizing them with

certificates and giveaways.

Use the young generation students as Hawai‘i Ohana, and

maximize the viral streams through their SNS networks

New Initiatives (3) OTA Campaigns

FIT Promotions: Trends are changing everyday in Korea, now it is the FIT era

Objective: to carry out huge and constant campaigns for the Hawai‘i FIT market to generate increasing arrivals from FIT travelers to Hawai‘i.

Working Partners:

Details:

Promote Hawai‘i year round through the above partners

Conduct an Exclusive Hawai‘i Promotion in a certain month to put the biggest emphasis on Hawai‘i

Co-host Travel Agents/Media/Consumer Fam Tours and launch events with these partners

Interpark Hana Free Expedia AGODA

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Top Five Things To Look Forward in 2015

1. Edu Tour FAM Tour (Mar)

2. Hana Tour International Travel Show (May)

3. Hawai‘i Media Day (Aug)

4. Mode Tour International Travel Show (Oct)

5. Hawaii Travel Mission in Seoul & Busan (Oct)

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Mahalo!