Post on 17-Dec-2015
1Travel Market Insights www.travelmi.com
Get China Ready
Presented by:
Scott JohnsonPresidentTravel Market Insights Inc.
Get China Ready – Research…
ONE Travel Conference for Shopping, Dining & Cultural Tourism
January 27 - 29, 2015Hilton McLean Tysons Corner,
Virginia (Washington DC)
2Travel Market Insights www.travelmi.com
Who is Travel Market Insights
• International Travel:
Inbound, WITHIN, and THROUGHOUT USA.
• Consumer Insight– Actual visitors to USA
• Trade Insight– China Travel Trade
Barometer
• Strategic Analysis– Retail, DMO’s,
Attractions
• Optimal Market Distribution– CCR Analysis Matrix
• Shift Matters– Travel Monitor
• Why = Analysis
3Travel Market Insights www.travelmi.com
Get China Ready Research
• China outbound travel – always transforming• Change requires adjustment
• Adjustment requires research and analysis
4Travel Market Insights www.travelmi.com
Putting China Into Perspective
• China Headlines:– Huge potential:
98 million border crossings in 2013
• Behind The Headlines:– Border crossings are
not equal to travel
5Travel Market Insights www.travelmi.com
Putting China Into Perspective
China arrivals projected to increase 172% 2013-2019 (USDOC,NTTO Forecast)
China will be the top overseas visitor market to the USA
6Travel Market Insights www.travelmi.com
Behind the Headlines USA?
4,910
4,404
3,691
2,950
2,1581,847 1,788
1,5101,285 1,265
1,109835 760 670 637 559 535 487
US Arrivals Forecast 2019 (in 000)
Souce: Travel Market Insights - Based on USDOC, NTTO Forecast October 2014
7Travel Market Insights www.travelmi.com
Perspective - Behind the Headlines
2,806 2,572
2,162
1,556
1,150 1,131 1,108 981
696 695
UnitedKingdom
Japan Brazil China Germany Australia France Korea Italy Colombia
Forecast: Leisure Arrivals in 2019
Arr
ival
s in
(000
)
Souce: Travel Market Insights - Based on USDOC, NTTO Forecast Oct. 2014
8Travel Market Insights www.travelmi.com
2012/13 China Key Shifts
Key Market Shifts from China to USA:
• Business travel continued to contract, leisure grew in 2013.
• Fewer Chinese visited multiple destinations – more visited only one destination in 2013.
• Package travel and travel to visit friends and family declined.
• Chinese visitor’s length of stay in the USA was shorter in 2013 compared to 2012 (down 5%).
Key Drivers:
• Demand: more FIT, independent and experiential travel.
• New Policies: Anti-corruption campaign and Tourism Law.
Net Effect:
• Increased market share to icon cities (NYC, LA, and San Francisco).
• Fewer business travelers, visiting fewer destinations = Good for destinations visited, but lower geo-equity. Less spend on hotel, dining, beverages due to anti-corruption campaign.
• Growth in leisure as a share of visitors with more FIT/Holiday travel = shorter stay and decrease in geo-equity.
• Trade restructuring (Airlines, Operators, Agents, Inbound TA).
9Travel Market Insights www.travelmi.com
10.2
10.0
29.4
2.1
7.5
11.0
5.3
1.3
2.6
1.4
0.7
1.5
4.3
18.4
45.9
31.2
16.6
10.9
6.3
5.8
31.4
2.2
6.6
9.1
4.8
2.1
2.4
2.2
1.2
1.0
3.0
13.6
46.1
33.7
21.0
9.5
- 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0
MASSACHUSETTS
BOSTON***
NEW YORK CITY-WP-WAYNE***
PHILADELPHIA***
CHICAGO***
DIST. OF COLUMBIA
FLORIDA
MIAMI***
ORLANDO
ATLANTA
MARYLAND
VIRGINIA
TEXAS
LAS VEGAS
CALIFORNIA
LOS ANGELES-LONG BEACH***
SAN FRANCISCO***
HAWAIIAN ISLANDS
Percent of Visits
China Market Share Shift 20132013
2012
***= Metropolitan Area
2013
Increase
Decrease
Distribution Shift
10Travel Market Insights www.travelmi.com
China Travel Trade Barometer 2015 Travel Product Demand
Accommodation near but outside city center
Destinations/attractions
Multi-destination tour combining top and lesser known
Fully organized tour with escort
Accommodation in city center
Shopping for quality brands
FIT Dynamic packages
Discounted shopping
Duty free shopping
Multi-destination tour to top familiar destinations
0% 10% 20% 30% 40% 50% 60% 70% 80%
Travel Product Demand (higher + much higher)
11Travel Market Insights www.travelmi.com
China Travel Trade Barometer 2015 New U.S. and China Visa Policy
Greatly Increase Book-ing
Moderately Increase
Somewhat Increase
No Change
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
33%
46%
13%
8%
Chart Title
Influence on booking for travel products to U.S. Promotion/Sales on travel products to U.S.
Much higher promo-tion/sales
Higher promotion/sales
Somewhat Increase
No change
0% 10% 20% 30% 40% 50% 60%
38%
50%
8%
4%
• Due to the new U.S. and China visa policy 92% of the trade reported bookings would increase!
• 96% of the respondents indicated they would promote and sell
product focused on the new policy.
12Travel Market Insights www.travelmi.com
China 2015: Drivers and Outlook
2015 Outlook• USA outpaces most for arrivals
and spending.
• Continued investment in U.S. property/businesses and student educational travel.
• China-based companies expand web/social for “FIT” travel.
• FIT travelers will book (somewhat) familiar destinations.
• Shorter trips – focus on one, two and maybe three destinations.
• Vacation/Holiday travel increased.
• Business travel refocused.
Key Drivers
• Approved Destination Status (ADS) policy
• Demand Shift
• Tourism law – more professional
• Anti-corruption campaign
• Visa Changes
• Increased Flight Capacity
• Distribution Expansion – traditional, web, mobile, social
13Travel Market Insights www.travelmi.com
2015 China Ready Research
China Travel Trade Barometer
Custom Consumer Analysis – China to your destination and competitive destinations (all USA)
Chinese Student and Education Travel to USA
China Reports: Leisure, Business, First-time Visitors
China Annual Shopping Study: in-depth, brand, destination specific (actual visitors to USA)
Contact: Scott@Travelmi.com 1-518-668-2559
15Travel Market Insights www.travelmi.com
Scott C. JohnsonPresidentTravel Market Insights Inc.
Phone: 518-668-2559E-mail: Scott@travelmi.comWeb: www.travelmi.com