china outbound tourism market structure and transition · most valuable and authoritative...
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China Outbound TourismMarket Structure and Transition
David TangIvy Alliance Tourism Consulting
November 10th, 2017
Chinese Outbound Travel – Booming Market
Source: CNTA
0
20
40
60
80
100
120
140
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Nu
mb
er
of
De
par
ture
s (i
n m
illio
ns)
Chinese Outbound Tourists VS. International Tourists
11.3%Number ofChinese outboundtourists
Other
3.9%4.3%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
InternationalTourists
Chinese Tourists
Growth Rate,2016
Source: UNWTO & CNTA
International Tourism Expenditure & Growth Rate
Regional Structure of Chinese Outbound Tourist-generating Markets
The First-tier Tourist Generating Regions
The Second-tier Tourist Generating Regions
The Third-tier Tourist Generating Regions
Industry Chain of Chinese Outbound Tourism
Upstream Suppliers
Sales Channels
Media & Marketing Platforms
Online Users
Airlines
Hotels
Attractions
Activities
Others
Local Travel
Agencies
Search Engines, Social
Media, Comments, Guides,
Marketing Platforms
Online Distributions
Online Direct Sales
Offline
users
Tour Operators
Online
Travel
Agencies
Offline Sales
Branches/Stores
Offline Distributions
Users
Online Direct Sales
The Number of Chinese Outbound Travel Agencies
Choices of Outbound Travel
Total ( Including the number of Chinese tourists to Hong Kong，Macao & Taiwan )
40.7%
The Number ofTourists Organized byTravel Agencies
Other
Total (Excluding the number of Chinese tourists to Hong Kong，Macao & Taiwan )
25.6%
The Number ofTourists Organized byTravel Agencies
Other
CHINA OUNTBOUND-TOURISM PRICE INDEX (OPI)
Most valuable and authoritative monitoring system on China outbound tourism market
Big data collection and analysis of 200 to 300 thousands outbound tourism products;
Provide useful guidance and intelligence on changes China outbound tourism market demand, of price and structure of outbound tourism products.
CHINA OUNTBOUND-TOURISM PRICE INDEX (OPI) 2016-2017
119.7
145.1
129.9
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
Ch
ina
Ou
tbo
un
d-T
ou
rism
Pri
ce In
de
x
China Outbound Travel Price Index of European Destinations
96.6110.7 107.9
93.5 96.5 102.5 104.0
109.7 109.2 108.5 110.1 95.7
87.3 88.4
40
60
80
100
120
140
160
Eu
rop
e O
utb
ou
nd
-
To
uri
sm P
rice
In
de
x
2016
93.1 106.1
83.9 80.6 87.1 89.7 94.6
101.8 104.5 97.9
106.1
40
60
80
100
120
140
160
Eu
rop
e O
utb
ou
nd
-To
uri
sm
Pri
ce
In
de
x
2017
China Outbound Travel Price Index of Major EuropeanCountries
40
60
80
100
120
140
160
180
OPI
of
Ma
jor
Eu
rop
ea
n C
ou
ntr
ies
2017
France
Germany
UK
Russia
40
60
80
100
120
140
160
OP
I o
f M
ajo
r E
uro
pe
an
Co
un
trie
s
2016
France
Germany
UK
Russia
Average Daily Price of Outbound Tour Products to Major European Countries
0
500
1000
1500
2000
2500
3000
3500A
vera
ge D
aily
Pri
ce o
f Fu
ll P
acka
ged
G
rou
p T
ou
rs (R
MB
yu
an)
2016-2017
France Germany UK Russia
Market in Transition
Before
Traditional Sight Seeing
Business
After
Vacation Business
Many offline sales stores Distribute through OTA or
website
Mainly in 1st tier Regions Expanding to 2nd & 3rd tier
Regions
All-inclusive Package Tour Diversified Tour
Quantity Quality
Upgrading of Travelers Demands & Consumption
Average stay in each overseas destination increased to 2.3 days. For islands like Maldive or cities like Tokyo, travelers intend to stay almost 1 week.
More travelers choose destinationslike Africa, Middle-East or North Pole.Interests on One-belt, One-road countries will also grow rapidly.
Travelers become more rationalin shopping, while spending
more money for hotel, catering and
entertainments.
Quality tour products, themed tour products and customized tour
products are becoming more and more popular.
More Interests on New Destinations More Rational in Overseas Consumption
More Demand on Tour ProductsMore In-depth & F.I.T. Tours
Upgrading of Outbound Tourism Products
In-depth experience
tour
Self-driving, family,
education tour…
Personalized, luxury
tour
Quality Products
Themed Products
Customized
Products
China Outbound Tourism Quality Service Certification (QSC Program)
Business
Integrity
Chinese
language
Service
Capability
Convenient
Service for
Chinese
Travelers
Certified QSC Merchants in the World
How to Effectively Attract Chinese Consumers
Understand Chinese
Tourism Market
Product
Development
Strategy
Market
Penetration Plan
Use Chinese
Marketing Tool
Qualify Service for Chinese Outbound Travelers:
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Alipay reaches
70%+ of China
outbound tourists
Characteristics
UserSegment
Geo-Location
CreditProfile
SocialRelationship
Finance&
Assets
Payment
Behavior
Highly targeted
promotion through
big data
User marketing for
pre-trip, during,
post-trip
Int’l merchants
across 23 Countries
450MM+ Validated Users
100MM+ Daily Active Users
