cotri workshop at wtm london 2012

CHINA OUTBOUND TOURISM RESEARCH INSTITUTE

www.china-outbound.com

Welcoming Chinese Customers

Niche Markets – Trainings and Quality – Social Media Marketing

WTM London Nov. 7th, 2012

Third Annual Tourism Policy Workshop Dromoland/Ireland Nov. 3rd, 2012



Speakers:

Prof. Dr. Wolfgang Georg Arlt, Director COTRI China Outbound Tourism Research Institute

Ian Pack, CEO COTA China Outbound Tourism Academy Alice Rossetto, Owner Rossetto Solutions

Jens Thraenhart, President Dragon Trail




16.30-16.40 h Welcoming and Introduction 16.40-17.00 h Prof. Dr. Arlt: Five Steps to successfully Welcoming Chinese Customers

17.00-17.15 h Ian Pack & Alice Rossetto: Online and offline Chinese Tourists Welcoming trainings

17.15-17.30 h Jens Thraenhart: Chinese Social Media Marketing and Social Media platforms

17.30-18.00 h Open floor discussion




Prof. Dr. Wolfgang Georg Arlt

Five Steps to successfully Welcoming Chinese Customers





is the world's leading independent research institute for information, training, quality assessment, research, and consulting relating to the

Chinese outbound tourism market.

Established: 2004

Director: Prof. Dr. Wolfgang Georg Arlt

Headquarter: Heide/Germany

China office: Beijing

COTRI Headquarter GermanyFritz-Thiedemann Ring 2025746 Heide, GermanyFax +49 481 8555 121Phone +49 481 8555 [email protected]

COTRI China Office101/2B Gui Gu Liang Cheng 1 Nong Da Nan RdBeijing 100084, P.R. of ChinaPhone +86 13 4260 [email protected]

COTRI China Outbound Tourism Research Institute



Prof. Dr. Wolfgang Georg Arlt FRGSActive in P.R. of China since 1978Former owner of Inbound Tour Operator China -> EuropeCOTRI founder and director since 2004Professor for International Tourism Management at West Coast University of Applied Sciences Germany (Heide)Visiting Professor at universities in China and United Kingdom

Fritz-Thiedemann Ring 2025746 Heide / GermanyPhone +49 481 85 55 523Fax +49 481 85 55 121E mail [email protected]

Room 101, Building 2B, Gui Gu Liang Cheng, No. 1 Nong Da Nan Rd., Haidian District, Beijing 100084/P.R. of ChinaPhone +8613820418485E mail [email protected]



China – A tale of two countriesHope: Can Chinese Consumers save the world economy?And Gloom: Be very afraid of the China Bubble(Recent TIME Magazine headlines)



China – A tale of two countries

2012 - A critical year not only in the Maya calendar

Bo Xilai



Survey results from Bank of China/Hurun (10/2012):

44% of all Chinese with more than one 10 million RMB (1.25 million Euro) in personal wealth (about one million households) are considering emigration.

85% of all Chinese with more than one 10 million RMB in personal wealth are planning to send their child to study at a foreign university.



1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Est.

7.1 7.6 8.2 8.4 9.2 10.5 12.116.6 20.2

28.9 31.0 34.541.0

45.8 47.557.4

70.080.0

China Outbound Tourism 1995-2011 in million border-crossingsSource: COTRI, CNTA, CTA

The Chinese economy is slowing down – why is China’s outbound tourism still growing (and will continue to do so)?



2011: 70.3 million border crossing, 69 billion US$ total spending

No. 3 source market globally in border crossing, No. 2 in spending

2012: COTRI estimate 80+ million border crossings, 85+ billion US$ total spending (up to June 39 million crossing)

App. 3 million Chinese travels within Europe (without Russia)

“Golden Week” October 2012: 30% increase travels to Europe



Impressive growth, but in the past:90% of the Mainland Chinese travelers stayed within Asia

Those who travel further concentrated mainly on the most famous sights in the most famous cities in major destinations

Spending concentrated on shopping, not on tourism services

Destinations and companies off the beaten track often experienced the much-hyped Chinese tourists a Fata Morgana.

With the Second Wave of Chinese Outbound Tourism fuelled by the New Chinese Tourists, this is now changing.



Enters the NEW CHINESE TOURIST



More self-organized travelers from China are slowing down and spreading further afield.

Increasingly travel-savvy and globally connected, below 45 years and green, the New Chinese Tourist are arriving in special locations, doing special things and are staying for more than just a snapshot.

Niche products for the first time get a chance to profit from Chinese customers – and even small niches in China mean big numbers.



New Chinese Tourists - where do they come from?

15 years experience since the official start of outbound leisure tourism from China More than 1.5 million Chinese have studied outside China since 1978; most of them went backMore than 1 million persons in China enjoy a personal wealth of more than ten million RMB (1.6 million US$); average age of Chinese millionaire: 39 y China is the global no. 1 internet user country



“Self-organized” travellers are not be confused with “individual” travellers in the western sense.

More experience and language skills still lead to “half-organized” trips with tour operators providing visa, air trip and maybe a few hotel bookings.

New Chinese Tourists are still Chinese: They are still happy to see signage and other information in Chinese as a sign of respect for their country, they will still rely mainly on peer group information from other Chinese travellers, they will still travel, especially outside Asia, for prestige and education, not for holidays.



Travelling long distance means for Chinese outbound travellers first of all:

Investment in- Personal prestige- Social capital- Learning- Business opportunities- Real Estate / companies- Soft power

Chinese are NOT travelling

inter-continental for holidays



The low price, low quality Chinese package outbound tourism will suffer from the pending economic crash in China, annual growth rates in terms of number of persons travelling may fall below the 20% mark.

But the New Chinese Tourists will continue to go abroad, as the motives for international travel – prestige, networking, distinction – will stay the same.New Chinese Tourists provide new opportunities to new destinations, but require adapted products and the usage of relevant marketing channels.



How to attract the New Chinese Tourists?Five steps to successful offers in the Chinese market 1. Understanding the specific demands of Chinese

customers 2. Training staff online and offline 3. Gaining visibility through China-specific quality

labels for service providers and destinations 4. Developing successful niche products 5. Creating a prestigious brand through social media

marketing



How to attract the New Chinese Tourists?Five steps to successful offers in the Chinese market 1. Understanding the specific demands and

behaviour of different segments of the Chinese consumer market for international tourism

Market Research

• Not confusing the demands of travellers to Hong Kong, Macao and Taiwan with the demands of trans-continental travellers

• Not confusing the demands of mass-tourism package tourists with the demands of “New Chinese Customers”

• Using Online and offline customised interviews and questionnaires and dedicated Focus groups

• Not confusing former demand with current demand



How to attract the New Chinese Tourists?Five steps to successful offers in the Chinese market

2. Training staff online and offline



Training and Quality

Chinese Tourists Welcoming City Label

Chinese Tourists Welcoming Quality Label

Chinese Tourists Welcoming

Training Programme Are You Ready For Chinese

International Travellers?

CTW Chinese Tourists Welcoming




3. Gaining visibility through China-specific quality labels for service providers and destinations



How to attract the New Chinese Tourists?

4. Developing successful niche products




5. Gaining visibility through China-specific quality labels for service providers and destinations



More information on the newly relaunched COTRI websitewww.china-outbound.com



Thank you for you attention – looking forward to your questions and comments during the discussion!

Contact: [email protected]

www.china-outbound.comwww.chinatraveltrends.com

MEET COTRI AT WTM LONDON: Stand AS95

http://www.china-outbound.com/

http://www.chinatraveltrends.com/

cotri workshop at wtm london 2012

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