Travel Distribution Summit

Asia 2014The shift from Groups to FIT in China

How to market to China's rising numbers of independent travellers

Roy Graff – Managing Director, ChinaContact@chinacontact

roy@chinacontact.org

The China outbound tourism market is already impacting nearly every international destination. Every single tourism organisation and company needs to formulate a China market strategy and prepare the ground work now.

• Over 18 years of hospitality, e-commerce and tourism

industry experience in China

• Launched independent travel business division in China

on behalf of Gulliver’s Travel Associates

• Fluent Mandarin Chinese speaker and student of

Chinese philosophy, literature and poetry

• Managing Director of ChinaContact, working with travel

businesses on strategies and implementation

of China market access

Destinations & Associations

Hospitality Tourism & Media

Online travel Event and Exhibition companies

China FIT – why now?

• Group travel competition is about price

• 16 years of outbound leisure travel started producing

experienced travellers

• High pressure tactics of group tours is off-putting

• Increasingly, destinations offer Chinese friendly services

• Global prevalence of Chinese operators and service

providers

• Rise of the middle class and high-income earners

• Seeking status through travel experiences and individual

control

Chinese outbound trips (millions)

Growth with current trajectory

Historical growth rate average: 19%Total outbound trips by 2020 estimated between 200-315 million

Image of Chinese tour groups

Image of Chinese FIT

China’s new Tourism Law

• Effective from 1 October 2013

• Aims to protect consumers

• Ignores independent travel

• Cannot advertise shopping tours

• Guide cannot go into store with group

• Tour leader must be a full time employee

– But…shopping tours are back!

• More on http://chinacontact.org/blog/chinas-new-tourism-law

•What are the sources for research and information?

•Where should you engage them?

•What are their priorities when travelling?

Influencing Travel and Spending Decisions

Overcome their instinctive distrust.

Engage at a personal level.

Learn to see beyond the clichés.

Source of information for travel research and inspiration

• Friends and Family recommendations

• Online travel forums

• Review sites

• Mobile content apps

• Travel agents

• Official Destination websites

Where and when should you engage them?

• Inspiration stage

• Planning stage

• Booking stage

• Pre-travel

• On the road

• Post-travel

Priorities of Chinese while travelling

• Trust

• Loyalty

• Cultural Nuance

• Food

How to better engage with Chinese FIT?

• Speak to operators and wholesalers

• Work with media

• Engage with the Chinese business

• Have a multi-channel strategy

• Localise wisely

• Have a clear focus of your target market

Social media

• Cover PC and Mobile

• Branding, engagement, service

• Fragmented market

• Time on social media

• Your own web presence

• Avoid piracy and copying

• Mobile web and apps

Relationships – GuanXi

• Nothing replaces direct face to face meeting and relationship building

• Market visit

• Client orientation

• Gift giving

• Negotiation techniques

Contact us Twitter: @chinacontactEmail: info@chinacontact.orgTel: UK +44 20 8123 9528 TW +886 911301404

www.ChinaContact.org

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