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Results of ChinaContact’s first ever global survey on the Chinese travel industry provides an overview of what international organizations have done and intend to do in preparation for the unquestionable growth of China’s outbound tourism. The survey aims to answer critical questions concerning effective sales and marketing strategies to China for the benefit of active and upcoming destinations.
Projections of the country’s outbound tourism market anticipate double digit growths until 2020 to reach 100 million people, according to world organizations such as UN-WTO, WTTC, and PATA. Consequently, an overwhelming majority of respondents believe this will change the way the industry works and that media attention on China is not over-hyped.
Launched in the last quarter of 2007, the survey respondents consisted of tour operators, accommodation suppliers, and leisure travel providers. Other types of organizations that participated include travel/tourism associations, destination management companies, transport suppliers, business travel providers, events organizers, students, software developers, restaurants, and academics.
Participants from all over the world took part in the survey with the most number of respondents coming from the United States, followed by the United Kingdom as well as travel industry players from China itself. Other countries included major tourism players such as France, Germany, Canada, Switzerland, Hong Kong, and Spain as well as rising tourist destinations like South Africa, the Czech Republic, and Turkey.
The major findings from the 2007 China outbound tourism global travel industry survey:
- At present, accommodation providers categorize the type of service provided especially to Chinese visitors as hotel-luxury. Although there is still a long way to go before Chinese tourists are given the same level of attention as western tourists, many hotels already provide or plan to offer Chinese language information, Chinese speaking staff, chopsticks, and Chinese items at meals.
- Travel service suppliers list tour packages as the specific type of service offered to Chinese customers. As expected, frontliners in the market already provide Chinese language information at the same time they make sure to book hotels and restaurants suitable for Chinese. But flexible and convenient payment conditions, which are of key importance to Chinese agents, have yet to be provided by the trade.
- Among the respondents, less than half have an office in China of which only about half have hired Chinese speaking staff. In addition, no more than 40% has exhibited in the country, leading to the conclusion that not enough marketing effort is being placed on the Chinese market at this point in time.
- As it is, 62% of respondents already consider China an important market although only 20% are active and a little over half have had experience in receiving Chinese travelers or have had contact with them.- Local presence in China is often in the form of a representative office or under a representation agreement with a local office rather than a company. Of those active in China, 96% experience stable or increased profits and 75% has seen an increase in their business over the past five years.
- Marketing expenses have risen over the past two years, 2006 and 2007, as the share of web and email marketing increases and more money is spent on exhibitions in China. Although future spending in all areas of marketing is expected to grow in 2008, particularly for websites and exhibitions, about half of the respondents still allocate less money to China than most other markets.
In terms of localized marketing, more have opted for brochures or destination guides rather than websites. Micro-sites, supplemental web sites focused on a niche market specific to a destination or organization, are more prevalent than a full version of the original language. Examples of micro-sites are dining, golf, meetings, specific events, reunions, etc.
- Half or more than half of those that localize their websites use suppliers outside of China for hosting, registration, design, and search engine optimization (SEO). But this is not a good idea since Chinese website design is unique and access to host servers outside China is difficult.In terms of online marketing experience in China, many have no idea of what it delivers to them, at the same time the effectiveness of their Chinese language sites is not monitored.
- The International Forum on China’s Outbound Tourism (IFCOT), for 2006 and 2007, ranked highest among the varied travel trade events in China in terms of value for money, high organizational standard, and business results. In contrast, the Guangdong International Travel Fair (GITF 2006) ranked poorly among respondents for business results.
- More than 70% of businesses working in China consider themselves to be successful, attributing their success to alliances with a trusted partner, cultural awareness, extensive research, familial connections in China, relationships cultivated over time, an existing network, a niche product, as well as luck and perspiration.
Reasons for unsuccessful business ventures in China were ascribed to the absence of reliable partners, high costs, the lack of preparation, misinterpretation of the culture, lack of resources, as well as the wrong product for the Chinese market, language barriers, strict regulations, and no personal connections.
Source: ChinaContact at www.ccontact.com
