Segments Emerge
in China Outbound Market
China (PRC) outbound
travel to Asia Pacific destinations has grown at an
average annual rate of 19.8% since 2001, fuelled by
strong economic growth; greater consumer spending
power; Beijing's moves to loosen travel
restrictions and allow the Chinese currency to
strengthen; and greater segmentation in the
marketplace.
Travel trade participants
in the PATA
Travel Mart 2006
China (PRC) Outbound luncheon workshop learned this
today at AsiaWorld-Expo in Hong
Kong.
Panellists in the
interactive session included Shanghai Business
International Travel Service Deputy General Manager
Ms Li Guo; Shanghai Shihua International Travel
Service Assistant General Manager Mr Tom Wang; and
Tourism Australia Regional General Manager-North
Asia & Business Tourism Mr Johnny
Nee.
Panel moderator and PATA
China (PRC) Representative Ms Kate Chang warned
destinations to be wary of the sheer number of
potential Chinese travellers in the
future.
"Destination tourism
organisations will have to check how the Chinese
"golden weeks", which coincide with Chinese New
Year, May Day and National Day, fit in with
existing inbound patterns," she said. "There is a
risk of destinations being "swamped" by travel
demand from Chinese travellers."
Mr Nee agreed: "China is
one of the world's strongest performing markets.
China's forecast growth, in both outbound travel
and expenditure, make this market critical now and
in the future.
"However, we need to
continue to safeguard the market from unethical
business practices, ensure Chinese visitors enjoy
high quality tourism experiences, and take a
gradual market expansion approach to manage
long-term, sustainable growth. "
Although China (PRC)
remains an "emerging" outbound market, Ms Chang
cautioned against writing it off as comprising only
of consumers who feel safe in large groups that
'follow the flag'.
Mr Wang agreed: "The
Chinese travel market has become
multi-purpose.
The traditional market is
becoming smaller. Business and MICE travel is
getting bigger, as is FIT and single service
travel."
Ms Li said that middle
class professionals, who are a starting to organise
private trips, and all types businesses and
organisations are becoming significant sources of
Chinese outbound travellers.
She said: "Not only do
entrepreneurs and senior executives enjoy business
trips, but also the employees, agents and business
partners of many types of organisation are being
motivated by all-expenses-paid international travel
to do a good job."
Ms Chang cited an increase
in the number of older singles, empty-nesters and
childless households as further examples of
segmentation.
She said marketers can
reach the majority of affluent households by
focusing on specific target regions, such as
Shanghai, Beijing, Guangdong, Zhejiang and Jiangsu,
and that the development of private travel in China
has revealed regional variations.
Mr Wang said that
developing solid co-operative partnerships within
each region is the answer.
"All links in the travel
product supply chain must co-operate
fully,"
he said. "From the local
agent who should give great support to the tour
operator, who in turn should look after the
convention and visitor bureau, airline, bank,
hotel, media et cetera to maximise the experience
for the traveller."
Ms Chang reiterated that
destinations must carry out research on their
Chinese visitors. "The market is so big and so
diverse that different marketing mixes have to be
designed for different segments and regions," she
said.
However, there remains an
essential commonality running through Chinese
travel preferences: safety and security.
"Nearly all Chinese
appreciate safe and clean accommodation, safe and
reliable transport, helpful hospitality staff and
friendly locals," Ms Chang said.
Ms Li said: "The Chinese
traveller must feel that their security and health
are assured. Furthermore, a carefully designed tour
itinerary should elicit feelings of surprise and
excitement in Chinese travellers, as well as
maximize their sense of
participation."
Mr Wang identified four
commonalities among Chinese travellers: Their
"affection" for value for money, safety,
time/planning and recognition.
EDITOR'S
NOTE
Pictures from the Mart are
available online at www.PATA.org/ptm06live
.
FOR MORE INFORMATION
CONTACT
PATA
Communications
David Gillbanks / Paveena
Olansuksakul
Tel: (66-2)
658-2000
E-mail:
communications@PATA.org
Online pressroom:
www.PATA.org/news
ABOUT PATA
Mission statement: "The
Pacific Asia Travel Association (PATA) is a
membership association acting as a catalyst for the
responsible development of the Asia Pacific travel
and tourism industry. In partnership with PATA's
private and public sector members, we enhance the
sustainable growth, value and quality of travel and
tourism to, from and within the
region."
Founded in 1951, PATA is
the recognised authority on Asia Pacific travel and
tourism. PATA provides leadership and advocacy to
the collective efforts of nearly 100 government,
state and city tourism bodies, more than 55
airlines and cruise lines, and hundreds of travel
industry companies. In addition, thousands of
travel professionals belong to dozens of PATA
chapters worldwide. PATA is a not-for-profit
organisation.
Find out more at
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