reaching the chinese traveller onlinerise of the chinese independent traveller large group travel is...

Reaching the Chinese Traveller OnlineEssential B2C digital tools for the Chinese outbound tourism market

Roy Graff | EyeforTravel TDS Europe, June 2018

2 | WWW.DRAGONTRAIL.COM © 2018

Dragon Trail Interactive

Dragon Trail Interactive is an award-winning digital marketing and solutions agency for

the travel industry that helps travel and tourism organizations reach and engage with

affluent Chinese consumers and the travel trade through outstanding digital initiatives.

The company is 100% focused on the global travel industry, 100% focused on

marketing to affluent Chinese consumers and 100% focused on leveraging digital

solutions to reach client goals. In addition to providing integrated consumer marketing

services, Dragon Trail continuously develops proprietary technology applications and

platforms through its team of in-house engineers, including B2B travel marketing

platforms for mobile channels.

We are proud to work with major international brands, such as Destination Canada,

Los Angeles Tourism and Convention Board, PromPeru, Visit Florida, Hertz, Norwegian

Cruise Line, Leading Hotels of the World, Air Canada and Sydney Opera House.


About the Speaker

Roy Graff has over 20 years of experience working in and

with China in the tourism, hospitality, luxury retail and

digital marketing sectors. He is the author of the book

China, the Future of Travel and frequently speaks at

leading travel and tourism conferences. Roy has provided

strategic advice to organizations including Skyscanner,

VisitBritain, PromPeru, Eurostar, and Peninsula Hotels and

Resorts, among many others. In the early 2000s he headed

Gullivers Travel Associates’ development of the

independent travel business in China in the early days of

Chinese outbound tourism.

Roy GraffManaging Director - EMEA


Rise of the Chinese Independent Traveller

Large group travel is waning. FITs (free independent travellers) now make up 20-40% of the outbound travel market.

FIT is most popular with affluent, younger travellers from 1st and 2nd tier cities.

FITs and SITs are even more likely than group travellers to use digital tools to help plan the details of their travel

experience, especially once they reach their destination.

A Journey to Europe, the Chinese way



Inspiration Phase: WeChat Moments

Our traveler, Ms. Zhou, sees posts

shared by a friend of a self-driving trip

around Europe on WeChat Moments.

• WeChat is China’s most popular mobile

app, with nearly 1 billion active users.

• 60% of WeChat users check Moments

every time they open the app.

• As of 2016, one third of WeChat users

spent 4+ hours a day on the app.

• 47% of HNWI millennial travellers get

their travel information from their friends’

WeChat Moments.


Inspiration Phase: Weibo

On Weibo, Ms. Zhou sees more posts

about travelling in Europe shared by

KOLs and popular accounts.

• After years of decline, microblogging

platform Sina Weibo made a

comeback in 2017.

• In May 2018, Weibo announced a year-

on-year increase of 70 million monthly

active users, for a total of 411 MAU, as

well as a 111% rise in profits.

The Fengjing Jingxuan aka “Best Views” account has 3 million Weibo followers

TV presenter and travel blogger Wang Mengyunhas 46,000 Weibo followers


Inspiration Phase: Video

As of June 2017, there were 565 million

online video users in China.

2 billion videos are watched daily on

Weibo, and Weibo’s live streaming and

short video platforms are what catalysed its

comeback.

Video platforms in China include long-form

(Tencent Video, iQiyi, Youku), short-form

(Kuaishou, Miaopai, Meipai) and live

streaming (YY, Yingke, Yizhibo) video. All

can be used effectively by travel brands.

User-posted video from Switzerland, posted on Weibo via Miaopai

Visit Kenya’s video was WeChat’s most-viewed NTO post of Q1 2018


Research Phase: WeChat

Ms. Zhou follows a few official

accounts on WeChat to learn more

about potential destinations, and

discovers the Switzerland Tourism

account.

• Around 80% of WeChat users follow

official accounts on the app.

• 48% of HNWI Chinese millennials

primarily receive travel information

through WeChat subscription

accounts.


Research Phase: Travel Websites

Chinese travel review websites Mafengwo

and Qyer are popular resources for both

user generated and professionally created

content. 60% of users for both platforms

are Chinese millennials, who mainly travel

as FITs.

Both sites have travel guides, apps, and

also act as OTAs. Users can read about

and review attractions, and download

professionally written Chinese-language

guidebooks.


Research & Inspiration: KOLs

Mafengwo and Qyer allow users to upload

travel diaries and photos, and these websites

also host officially verified travel bloggers.

Qyer’s top-rated user, Luca_luo has over

2,000 followers on the platform, and her post

on a trip to Germany received 26,766 views.

She includes day-by-day itineraries, with an

instant booking button next to the hotels

where she stayed.

Ctrip also offers KOL promotion as one paid-

for marketing solution for destinations and

travel brands.


Booking Phase: Flights

94% of Chinese travelers visit price-

comparison websites when planning

their travel. They may use an OTA like

Ctrip, or Tongcheng, which is built into

WeChat.

Users can book flights directly through

WeChat service accounts for airlines.

KLM’s account allows users to

research and book flights, check in

and generate a digital boarding pass,

and interact with customer service.


Booking Phase: Hotels

WeChat users can search for and

book hotels directly through OTA

Elong.

Ctrip’s China Preferred Hotel status is

given to hotels that accept UnionPay

and Chinese mobile payment, offer

Chinese breakfast, tea, and electric

kettles, Chinese-language signage,

in-room information and customer

service, and free Wi-Fi. These hotels

are marked with a special symbol on

Ctrip’s listings.


Booking Phase: Car Rental

Self-driving travel is an emerging trend

for Chinese tourism, especially to the

US, Australia and Europe.

Chinese car rental company Zuzuche

offers driving license translation

services, guides to driving rules in

many different countries, including

Switzerland, suggested routes and

itineraries, and rental car booking

– all through their WeChat account.


Booking Phase: KanKan Talk

The future of online travel booking is a new generation

of messaging-based tools that help travel companies to

deliver more personalised service.

Dragon Trail’s new WeChat-based messaging platform,

KanKan Talk, arms agents with AI-assisted chatbot

technology to offer personalised recommendations

and service.

KanKan Talk has potential for hotels, cruise lines, airlines,

car rental agencies and tour operators. Its specialized

interface works particularly well for making bookings

and sales, and for providing customer service to clients. Customer agent interface + multi-chat management


Shopping and Mobile Payments

At the airport on her way to Zurich, Ms. Zhou buys

cosmetics at the Duty Free shop, using WeChat Pay.

Chinese tourists are by far the world’s top overseas

spenders and Duty Free shoppers.

Mobile payments in China reached US$9 trillion in

2016. The market is dominated by Alipay and WeChat

Pay. As these two platforms compete, the battle is

becoming increasingly international.


Why Accept Chinese Mobile Payments?More willing to spend

Yes No

(Nielsen 2018)

91%

In a recent survey, 91% of Chinese

overseas travellers said they were more

willing to spend if Chinese mobile

payments were accepted.

Anecdotally, Chinese tourists make

quicker spending decisions and spend

more when they know they can use

mobile payments.


Shopping and Mobile Payments: Where?

(Nielsen 2018)

47%

48%

52%

58%

62%

63%

0% 10% 20% 30% 40% 50% 60% 70%

Recreation

Transportation

Accommodation

Attractions

Dining

Shopping

Use of Mobile Payments OverseasTop shopping items include skincare, souvenirs, clothing and accessories

Dining includes restaurants, fast food, cafes and even street food

Recreation comprises performance tickets, spas, sporting events and bars


Shopping and Mobile Payments: Potential for Europe

During the 2018 May Day holiday,

Asian countries had the largest

transaction volume of Alipay

payments outside China, but

European countries welcomed

the bigger spenders.


In-destination Information: WeChat Mini-Program

When Ms. Zhou arrives in Zurich, she uses the

WeChat mini-program from Zurich Tourism to

guide her visit.

The Zurich mini-program offers Chinese

listings for shopping, restaurants, hotels and

attractions. Users can share venue

information with WeChat contacts and

create a personalized itinerary.

Other applications for tourism include:

bookings; concierge services; check-in

services and more.


In-destination Information: Ctrip’s VTM

Another option for an in-destination digital

guide is Ctrip’s virtual team manager (VTM)

service, which provides in-destination

shopping, sightseeing and emergency

information to users.

It is available in 150 countries and 800

destinations. It was used by 10 million

travellers in 2017, 10% of Ctrip FITs.

Automated chat supported by 8,000 local

guides and Chinese SOS hotline.

Social component: Users can share photos

and tips, join chat groups and meet up.


Sharing the Experience

During and after her trip, Ms. Zhou posts

photos on WeChat Moments, inspiring

other friends to visit Europe.

Chinese millennials love

to share their travel

experiences online, usually

through WeChat. Other

platforms include Weibo,

photo-sharing app Nice,

and travel review websites.

Destinations, businesses and

attractions can encourage

and leverage word of mouth

advertising by providing free

Wi-Fi and offering incentives

for reviews.


First Steps for Chinese Marketing

Research: What are Chinese tourists are saying about you on travel review sites. Where do you rank on Baidu?

Digital presence: Sign up for WeChat and Weibo. Create a Chinese-language, Chinese-hosted website.

Service localization: Amenities, Chinese-language service, mobile payment, etc.

Find more information at www.dragontrail.com


Learn More

Visit www.dragontrail.com for

information on the latest trends in

Chinese outbound travel and digital

marketing, watch the China

Outbound Travel Pulse video series,

sign up for our monthly webinar and

newsletter, follow our weekly WeChat

rankings and more.

You can also follow us on LinkedIn,

Twitter and Facebook.

Mr Roy GraffManaging Director - EMEATell: +44 (0)20 3289 8915 | M +44 (0)75 3277 6288Email: [email protected]

Website: www.dragontrail.com

www.twitter.com/dragontrail

www.linkedin.com/company/dragon-trail

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reaching the chinese traveller onlinerise of the chinese independent traveller large group travel is...

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