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Developing China Inbound Market
Haybina Hao
NTA Director of
International Development [email protected]
859.264.6547
Title here NTA’s role in developing the China inbound market
The distribution system in China
US as an ADS country for Chinese travelers
Chinese inbound travelers 101
Branding/Marketing – 4 factors
Seminar Outlines
Title here
Map of China
Title here 2007: MOU signed between USA and China
2008: NTA initiated China Inbound Program – 1st
group leisure
2009: Applied for MDCP grant
2010: Established NTA Visit USA Center
2011: Awarded Certificate of Appreciation by DOC
2012: Awarded “Overall Performance – Gold” by
COTRI
History: NTA’s Involvement
NTA Visit USA Center
Title here
China Barometer
Title here New visa policies
State Dept. effort in China
FCS puts more weight in tourism sector
Brand USA
Visit USA Committee
How to Capture China Inbound Market
New in 2012
Title here
Press Conference in China
Title here
How to Capture China Inbound Market
CITM 2012 - Shanghai
Title here Over 22,000 TA’s, 1,500 authorized for outbound.
1. By ownership:
Government owned/public brand names: CITS,
CTS, CYTS, CITIC Travel, CCT
Privately/Collectively-owned: Shanghai Spring
Tour/Airlines, Flying Holiday
Foreign capital/joint venture: Hua Yuan Int’l
Travel
Two Categories of Travel Agencies
Title here 2. By business scope:
Brand name retailors
(domestic/inbound/outbound)
Whole-sellers (domestic/outbound): specialized
outbound markets: Caesar Travel for Europe,
TTS Global Travel for US/Canada
Online retailers: C-trip, Sina
Receptive operators (domestic/inbound)
Miscellaneous agencies
Categories of Travel Agencies
Distribution System
Title here
USA was voted #1 destination
two years in the row -
WHY?
Why USA?
Title here
Reasons to Visit USA
Sightseeing
Shopping
Driving
US brands experiences
Luxury activities, affordable prices
Scouting for homes/businesses
Education
Medical care
Things not available in China
Etc.
Title here Concept of time
Queuing
Noise control
Hot meals
Individualism/Collectivism
Superiority
Interpersonal connections
Thought patterns
Etc.
Cultural Differences
Title here Historically frugal/Price conscious
Seeing a lot in little time, like the “est”
Concerned for safety; less adventurous
Swift shopping
Photographing as proofs
Ease in following others
Prefer Chinese meals/hot tea/hot water
Tend to be relatively untidy
Chinese Travel Styles
Title here Short notices
Frequent changes with booking
Constant bargains with price
Seeking for quotes but no follow-ups
24/7 on call
Delayed payments and collection issue
limited services in certain tourist areas
Coordinating with suppliers
Overall “China-ready” preparations
Challenges for Tour Operators
Title here Limited Chinese expertise on staff
Limited budget in marketing
Limited manpower to tackle new markets
Prioritizing among all emerging markets
Coping with community/shareholders desires
Dealing with changing governmental policies
Challenges for DMOs
Title here Limited Chinese staff to facilitate communications
Unfamiliar with Chinese custom to provide adequate
service
Sales team unfamiliar with Chinese cultures to
generate effective results
Limited budget in marketing
May not be placed as a priority by Headquarters
Challenges for Attractions/Suppliers
Title here 1. Believing in your product/service with passion
2. Considering larger geographical collaboration
3. Telling stories
4. Communicating in Chinese language:
Marketing: Four Key Factors
Spoken Written
China Mandarin Simplified
Taiwan Mandarin Traditional
H.K. Cantonese Traditional
Title here
Branding: Connecting Human Feelings
Shandong”