HOW TO ATTRACT VISITORS FROM CHINA Market Statistics And Target Audience Analysis

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Contents

MARKET STATISTICS ………………………………………… 2

TARGET AUDIENCE …………………………………………. 4

CHINESE TRAVELERS IN THE US ………………………… 5

CHINESE HOLIDAYS TRAVEL CALENDAR ………….… 6

EXPECTATIONS FROM HOTELS ………………………….. 7

SOCIAL MEDIA AND INTERNET USAGE ……………… 9

CONCLUSION ……………………………….…………………. 12

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Market Statistics

With over 100 million outbound travelers per year, Chinese travelers are the

world's biggest tourists.

Massive Chinese demand for international travel with 17% annual growth over the next decade

translates to 10 Million First-time Chinese travellers every year for the next 10 Years or 70,000

New Chinese travellers every day for the next 10 Years.

China tipped to be world’s largest source of outbound tourists, accounting for

200 Million Trips annually by 2020

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Chinese travelers are also the biggest spenders at over $100 billion US dollars

each year.

It is estimated that annually spent by Chinese tourists will reach $194 Billion by 2015, which

constitutes +$82 Billion change from 2012.

Chinese tourists each spend an average of $5,400 during their trips, 21 percent more than the

average for all overseas tourists.

The wealthiest 26% of outbound Chinese tourists spent an average of $7,032 on each trip

The emerging segment of DIY travelers (those who make their own arrangements

without the help of travel agencies) tend to be the biggest spenders.

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Target Audience

Compared to the US and European tourists, Chinese audience is much bigger, more optimistic and

willing to travel.

• Predominantly young- below 45 years old; The younger generation is better educated and is

more likely to be working as executives or professionals;

• Mostly interested in visiting famous places and attractions;

• Open to deeper experiences and closer contact with local host populations;

• Have had little experience with leisure travel, so they seek out online travel sites for

recommendations, information, and reservations.

• 7% consider themselves as travel ‘connoisseurs’ who focus on quality;

• A further 10% are active ‘experience-centered travelers’ who want to explore and discover;

• Group oriented but with a strong shift towards independent travel - particularly among the

younger and more affluent generation.

The Internet has become an indispensable tool for over 50% of Chinese if they want to travel abroad.

When it comes to choosing a destination, book a hotel or a flight, the first thing they do is to search for

information on the web. These are their most trusted sources. They visit the social networks, read

reviews, watch other travelers’ videos and pictures, and check out on forums before making their

decision.

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Chinese Travelers in the US

The US is one of the top 10 travel destinations for the Chinese tourists- following only traditional

vacation spots in South East Asia.

More than 1.8 million Chinese visited the United States in 2013, up 23 percent from a year before. The

number of Chinese visiting the country has more than tripled since 2008, and is expected to surpass

5 million by 2018.

Ranking Country 2012 Arrivals (‘000 trips) 2012 % Growth

1 Hong Kong, China 15,110.4 11.1

2 Macau 7,958.0 8.4

3 South Korea 3,383.2 55.0

7 USA 1,593.5 46.0

More than half of Chinese visitors say they come to the United States for leisure or to see family and

friends, and more than three-quarters listed shopping and sightseeing among their top activities. More

than 17% of experienced Chinese travelers ranked the U.S. as their top vacation choice if money was no

object - higher than any other destination. For first time travelers, the U.S. is the second most popular

vacation spot.

Shopping is at the top of the agenda for Chinese that visit the U.S., with 87% of visitors splashing some

cash at retail outlets in 2012. CLSA said the Chinese spend an average of $4,400 per trip on everything

from high-end hotels to cosmetics, making them the second-biggest spenders after visitors from India.

Top Visited Cities in 2012 Statistics

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Chinese Holidays Travel Calendar

Month Holidays Travel Times

Stay Length

December New Year (12.29- 1.1) 5% 5-10 days

January Chinese New Year 18% 7-14 days

February

March Womens Day

April Tomb Sweeping Festival

May May Day Dragon Boat Festival

6% 5-12 days

June

Jule Summer Holidays

14% 10-21 days

August

September Teachers Day Mid- Autumn Festival

October Golden Week 17% 5-12 days

November

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Expectations From Hotels

During out-of-country trips Chinese travelers have several requirements for the hotels that they stay at.

To be considered “Chinese friendly” hotels have to provide the following services:

An in-hotel specialist to assist Chinese guests during their stay

Local guides and maps in Mandarin

A Mandarin version of the hotel’s website

Chinese-friendly menu items like congee, noodles and rice.

Complimentary and fast Wi-Fi

Access to China Union Pay or Alibaba’s Alipay payment systems.

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Also based on the analysis of online reviews, Chinese tourists rank high such factors as Staff

Helpfulness, Cleanliness and Comfort of Beds, and Speed (that includes the Internet connection,

elevators, or service delivery)

The Chinese have shown themselves as the most satisfied clients by registering the most

number of positive reviews on traveling resources and review websites.

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Social Media and Internet Usage

Internet has become an indispensable tool for Chinese travelers for planning

their trips.

When it comes to choosing a destination, book a hotel or a flight, the first reflexes they will have is to

search and seek for information on the web. Traveler reviews play a huge role in China.

More than half of Chinese travelers make their bookings and reservations online.

They seek out online travel sites for recommendations, information, and reservations, which are

their most trusted sources. Nearly 80% of them say they look at traveler reviews for at least half

of their trips, and almost 50% check reviews while planning most or all of their trips.

Additionally, approximately 70% say they are influenced by their friends’ pictures/updates to

visit travel destinations.

Well over half of travelers (56%) say they like to post updates and photos from their travels to

social networks. This number is even higher – 93% among travelers aged under 35.

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Hotel reviews on the Web are one of the most important factors for Chinese

travelers.

• The Chinese are the most active posters on the Internet, having posted 42% of all luxury hotel

reviews globally.

• It is also the fastest growing segment - Chinese travelers wrote 89% more reviews in 2013

compared to 2012.

It is important to remember that Chinese travelers are not using TripAdvisor or other popular

Western traveling websites. Instead, they rely on their own online resources.

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China sees only 16.8% of luxury reviews posted on TripAdvisor. Chinese booking and review websites

such as Ctrip, Qunar, Dao Dao, and Dian Ping continue to gain shares of luxury hotel reviews globally.

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Surprisingly, only 65% of the prestige hotel brands analyzed were listed on APAC travel booking sites

compared with 86% in the U.S. and 73% in Europe.

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Conclusion

China is slated to become the world’s largest outbound travel market with projected

sustainable growth until at least 2030.

Chinese tourists are yet to gain sufficient experience in order to develop brand loyalty to

certain western hospitality brands.

The U.S. is becoming a more and more important tourist destination for Chinese

travelers.

There’s a strong shift toward independent travel among younger generation who want

control of their itineraries, are eager for unique experiences, and respond well when

brands make them feel special.

In order to attract Chinese travelers, destinations have to establish presence on the

Chinese market – primarily on the Internet and Social Media as the most utilized and

cost effective marketing channels in China.

Sergey Gusarov

Digital Media Marketing at Eau Palm Beach Resort & Spa

Please feel free to contact me with your questions or suggestions

sgusarov@yahoo.com |linkedin.com/in/svgusarov | twitter.com/svgusarov