Presentation: China

January 13, 2015

Team Introduction

GSO Shanghai

Organization

• Wendy Wu• Regional Director of Sales

• Working in the hotel sales industry for almost 20 years• Used to work in Radisson Blu and LHW Shanghai Offfice • Started to work in Meritus from January 2014

• Michelle Jiang• Regional Sales Coordinator

• Working in Meritus GSO Shanghai for more than 3 years

Information about China Market and Outbound Visitor

Country Profile

• Four leading cities: Beijing, Shanghai, Guangzhou and Shenzhen

• The second-tier cities mainly from Jiangsu, Zhejiang, Shandong & Sichuan (Chengdu and Chongqing)

Outbound Statistics

• Mainland China: more than 100 million outbound tours within 2014 as of the end of November, the first time in history. 

• Overseas tourist destinations: Asia (89.5%, in which Hong Kong, Macau and Taiwan account for 70.4%), Europe (3.5%), Africa (3.0%), Americas (2.7%), Oceania (1.1%), and other regions (0.2%). 

• China’s outbound tourism grew 10.8 folds from 8.43 million trips in 1998 to over 100 million in 2014.

• The six destinations receiving more than a million Chinese arrivals: Korea, Thailand, Japan, USA, Vietnam and Singapore.

Source: China National Tourism Administration (CNTA)

Outbound Statistics

China’s Tourists: Facts and Figures

• 97% of the trips were for leisure purposes.

• 85% said the most important service offered by hotels is Mandarin-speaking staff.

• 67% prefer to make their own travel arrangements.

• 53% chose to book hotels online or through mobile apps.

• 73% will share their experiences and photos on social media.

• 6,707 yuan ($1,100) average spent daily when travelling abroad (excluding accommodation).

• Chinese tourists’ spending abroad is projected to exceed $155 billion in 2014, 20.8% increase compared with last year.

Chinese Travelers to Singapore (2003-2013)

Singapore: Visitor Arrival Analysis

Overview (January – September 2014)

• From Jan – Sep 2014, IVA reached 11.4 mil (-3.7% YOY). Excluding China, IVA grew 1.5%.

• In September 2014, IVA reached 1.1 mil (-6.7% YOY). Excluding China, IVA fell 0.5%.

• Hong Kong (+21%), South Korea (+16%) and Vietnam (+13%) continued to be the top 3 growth markets to date as propensity for international travel continued to increase.

• China (-30%), Malaysia (-3%) and Australia (-3%) showed the largest absolute declines during Jan – Sep 2014.

Source: Singapore Tourism Board

Singapore: Visitor Arrival Analysis

Singapore: Visitor Arrival Analysis

Singapore: Visitor Arrival Analysis

Declining Markets in YTD September 2014

China – Sep (-41%) / YTD Sep (-30%)

• Continuing decline in multi-destination travel:

- Mainly from visitors twinning Singapore with Malaysia (-74% YOY).

- Visitors twinning Singapore with Thailand also registered a 77% YOY decline.

• More mono-Singapore visitors:

- Mono-Singapore visitors increased 22% YOY.

- As a result, average length of stay among China visitors increased from 2.9 days to 4.4 days.

Source: Singapore Tourism Board

On Untapped Potential from China Market

Develop New Potential Regions of China

• China can be divided into four business regions: Eastern, Southern, Western and Northern China.

• Potential cities in some region:- Eastern: Nanjing, Hangzhou, Wuxi, Suzhou, Jinan, Qingdao and

Xiamen

- Northern: Tianjin, Dalian and Shenyang

• Criteria of choosing potential regions/cities:- Direct flight (SQ, Silkair, Scoot and Tigerair)- Residents' consumption ability/overseas purchasing power- Trend of increasing outbound travel

Search Potential Business Channels

• Authorised Visa Agents (AVAs):- The Singapore Embassy in Beijing and Consulate-General

offices in Chengdu, Guangzhou, Shanghai and Xiamen ceased to accept walk-in visa applications starting from Dec. 8, 2014. Chinese citizens can only proceed to any of their Authorised Visa Agents to submit visa application.

- Total number of AVAs: 58 travel agents in China

• Airlines:- Contact airlines with direct flight to Singapore and

transfer flight to Langkawi for future business cooperation - As for Singapore Airlines, they have own travel agent-

SIA Holidays to promote Singapore hotels frequently

Requirements from GSO Shanghai

Detailed Requirements

• Efficient response to all FIT & group business

• Competitive rates/quotations

• Seasonal promotions especially during China long public holidays to compete with other hotels

• Free-sale calendar to GSO office and contracting clients promptly

• Support of FAM trip / Sales Mission / Road show

Travellers Requirement

Travellers Requirements from Hotels

• Mandarin-speaking staff due to increasing FIT travel

• Diversified Chinese foods for hotel breakfast

• Free wifi

• Free upgrade of VIPs/team leaders

• Unique exclusive experience of local culture

What Sales Hotel Need to Change to Attract to China Market

Some Suggestions

• Contracts or promotions in Chinese version

• Assign complimentary rooms to the decision makers of key/productive clients if they come to Singapore/Langkawi for site inspection

• Offer better rates as comparing with competitive hotels

• Special packages for theme travel, such as wedding package of Langkawi

What GSO Need from Hotels to Generate More Revenue

Special Requirements

• Flexible payment method for key clients (settle by monthly)

• Room allotment to key clients / shortening cut-off days in low and shoulder seasons

• Complimentary room policy (every 16 paying rooms to get 1 room free)

• Room quotations including accommodation and airport pickup for FIT Travel

5 Key Wins into Year 2014

5 Key Wins

• Sourced 5 new GSO accounts with well over $300K by end of 2014

• Achieved FIT production to 504 nights (Ctrip with 6314 nights ） in 2014, while 261 nights (Ctrip with 3,300 nights) in 2013

• Conducted 1 MHR Sales Mission for 2014 to include 2 properties participation (MOS & MMS) and 2 customer events in Beijing & Shanghai

• Attended IT&CM Roadshow 2014 with STB in Shanghai to promote MHR to more MICE/corporate clients of China

• Developed new regions of China such as Chengdu and Chongqing with productions to Singapore and Langkawi from 2014