vacasa asia market analysis - chen chen
TRANSCRIPT
Why Asia?
Travel and Tourism Industry in AsiaAsia to drive strong growth in global tourism
• In 2012, four out of the top 15 countries, accounting for the 67 million international visitors who came to the United States, were from Asia.
• Over the next decade, The World Travel & Tourism Council predicts Asia’s travel and tourism industry will grow by more than 6% each year - the fastest expansion rate of any region in the world.
• By 2020, The World Travel & Tourism Council predicts two out of every five travelers globally will be from Asia.
Individual’s Wealth Increasing
• With both technology and travelers' habits changing, the Asian millennial traveler makes a very large chunk of the world travel demographics.
Hospitality
• Asia already has an advantage because service here comes from the heart. Set against a strong cultural backdrop of hard work and hospitality, the genuine desire to please is naturally present in Asian society.
How to Start?Attract Chinese visitors to the US to use Vacasa
Launch Vacasa.jp
.JP
As more than 17% of experienced Chinese travelers ranked the U.S. as their top vacation choice, China has the biggest and easiest market to promote in the region.
As the most modernized country in Asia, Japan is the ideal starting country for Vacasa house rental in the region.
Chinese Visitors in US• More than 1 million Chinese visitors came to the U.S. in 2011, up
from 493,000 in 2008. The Commerce Department expects arrivals to rise 259% between 2011 and 2017.
• 1.8 million Chinese tourists visited America and spent a whopping $21.1 billion.
• The new travel visa can now be issued for up to 10 years for business or tourist travel for either US citizens going to China or Chinese travelers coming to America.
• Over the next 10 years substantial growth will be driven by outbound source markets with China leading the way.
Brand Promotion/E-Commerce in China
Chinese consumers actively prefer Western brands over their domestic competitors.
Western brand perferenceChinese lifestyle is evolving rapidly,
people are basing everything on the internet, from major decisions to which restaurant they should eat at
after work.
Daily life based on internetChina is now considered the
biggest market for e-commerce today, with more than 302 million on-line shoppers by the start of
2014 and a market size reaching $296 billion by the end of 2013.
Biggest e-commerce market
E-commerce is increasing demand in China, and with their constant use of mobile devices, M-commerce is on
its way to new heights.
Going mobileAlmost all of the broadcast and television personnel have social
media accounts. Most of the time, broadcasts and television networks
often relay information to their followers through social media
Social Media
113.6 million QR codes scanned in China in October 2013, up more than 38% from
the month before.
Massive QR codes
Social Media Partnership Opportunities
• 549 millions active users • Over 40 minutes - The average
amount of time Chinese adults spend on WeChat daily
• 55.2% percent of WeChat users open it more than 10 times daily
• 8.5 million public accounts • 8000 new promotional accounts daily
• IPO 25 billion • World’s biggest online commerce
company • World’s fastest growing e-commerce
market • It is estimated $713 billion market in
2017 • 80% of China’s online shopping
market is dominated by Alibaba
• 80 million users • 70% users are from first- and
second-tier cities • Daily average page visits of 210
million • China’s most effective self-
expression platform
• 176 million monthly active users • 82% users shop online • 44% of users who buy products on
Weibo do so after viewing an ad which matches their needs
• 14.4% users buy products on Weibo do so because it was recommended by a celebrity
• 2.8 billion monthly Weibo feeds
Tourism in Japan
In the year 2013 Japan received over 10 million foreign tourists, now Japan is targeting 20 million tourists at 2020, the year Tokyo hosts Olympics.
Authorities’ big ambition
Japan has 16 World Heritage Sites, 26 Michelin restaurants (as many as France) and a
big selection of culture events.
Big variety of activitiesJapanese Culture is recognized and beloved virtually all over the world. However, manifestations of Japanese culture overseas are by
no means limited to these top ‘exports’.
Japanese culture all around the word
Foreigners’ choice of accommodation is largely
limited to luxury hotels, where room rates run as high as
$800 per night.
High hotel rates
Government data shows, 13 percent of residential properties were left
unoccupied last year.
Empty houses
In terms of absolute Travel & Tourism’s contribution to
GDP, Japan’s ranks 3rd in the word.
Significant GDP contribution
Market challenges
A.K.A what is facing in Japan
Airbnb entered Japan in 2014• Most Japanese are not comfort with strangers,
specially with foreigners and will go to great lengths to avoid having a lengthy or complicated conversation with people in English.
• However, dedicating a local team will help ease the culture barrier and bridge the gap between culture difference.
Conservative Culture
Legal Grey Zone• Current regulations mean the serviced apartments
popular with tourists in other destinations do not cater to anyone staying less than a month.
• However the government is expected to soon ease these laws. With the push of the market demand and Vacasa’s legal support specialty, it will give the opportunities to develop an innovative rental program.
Conclusion:
Airbnb is not popular among Japanese folks.
300,000 registered hosts
70% hosts are foreign residents
Officially illegal in many counties
Market Opportunities
The visit-Japan project is designed to achieve the goal of
18 million visitors by 2016, through focused promotions of tourism attractions in priority
markets.
Vacations on remote islands such as Okinawa, Hokkaido have been more and more
trendy among travelers. The percentage of visitors to Japan who stay in Hokkaido ranks 2rd
just after Tokyo.
LINE, the biggest instant message app in Japan with over 13 billion
messages sent every day. Companies, artists, and brands can pay to have an "official" account on
LINE. 55.8% of promotion messages are read and 31.6% of coupons sent over the app are actually redeemed.
Tokyo’s successful bid to host the 2020 Olympics could have an
economic impact of about $29.7 billion over several years,
attracting 20 million international visitors.
Reference • Small Business Ideas for Asian Entrepreneurs • Japan accommodation guide • Is Japan about to lose its cool? • Cool Japan Fund • Launching airbnb.jp in record time • Visit-Japan Travel Mart • 101 Things To Do In Japan • Asia - Global Tourism’s Driving Force • Statistical Yearbook for Asia and the Pacific 2011 • What the Chinese Want • Digital marketing is an effective tool for business promotion in China • Alibaba Claims Title For Largest Global IPO Ever With Extra Share
Sales • How Japan's Line App Became A Culture-Changing, Revenue-
Generating Phenomenon • Check Out the Numbers on China’s Top 10 Social Media Sites
(Infographic) • 50+ Amazing Wechat statistics
• James McBride: Is Asian hospitality geared up for tomorrow's travelers? • The U.S.'s $4.4 billion surplus with China • QR Codes in China – Alive And Kicking • People Actually Use QR Codes (In China) • QR Codes Are Alive and Well and Living in China • OKINAWA'S REMOTE ISLANDS • Chinese Tourists Are Flooding Into The US Thanks To A New Visa Rule • Will Airbnb take root in Japan • Travel & Tourism economic impact in Japan 2014 • General Information of Tourism Statistics in Japan • Tokyo Olympics 2020: Modest, Broad Economic Impact Is Less Than
0.1% Of GDP • Olympic Games expected to provide economic stimulus • Inbound Travel Promotion Project (Visit Japan Project) • Japanese messaging app LINE is blowing up, and these stats prove it • How Japan's Line App Became A Culture-Changing, Revenue-
Generating Phenomenon • Rakuten considering Airbnb-like home rental service in Japan - sources