Eye for Travel China travel sector Case study 2007 Nov

Emerging Online Markets 2007Emerging Online Markets 2007

Roy Graff

Managing Director

ChinaContact

www.chinacontact.org

China case study


Gullivers Travel Associates in China2002-2005

From 10 staff and 2 offices in 2002 to 130 staff and 3 offices in 2005. Roll out of online booking platform RBS in 2003 Massive translation program into Simplified and Traditional Chinese of all

product reports (hotels, apartments, transfers, sightseeing tours). Little take-up of online credit card payment (preference to cash or bank

transfer). Focus on agent training and education, rewards and incentives Octopustravel.com soft launched end 2004 from Beijing.


JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

0

50000

100000

150000

200000

250000

300000

350000

400000

China agent online booking turnover

2002

2003

2004US

D


Where Chinese go?Europe country split

AUSTRIA

BELGIUM

SWITZERLAND

GERMANY

SPAIN

FRANCE

UNITED KINGDOM

GREECEITALY

LUXEMBOURG

NETHERLANDS

PORTUGAL

Asia/Oceania Country split

SRI LANKA

CHINA

HONG KONG

INDONESIA

INDIA

JAPAN

SOUTH KOREA

CAMBODIA

LAOS

MALAYSIA

MYANMAR

MACAU

NEPAL

PHILIPPINES

SINGAPORE

THAILAND

TAIWAN

VIETNAM

China outbound destination split

Asia/Oceania

Americas

ME/Africa

Europe


Destination breakdown as office matures

Beijing totals regional dist.

WesternEurope48%

MiddleEast2%

SouthAmerica1%

Aus/NZ3%

Africa1%

EasternEurope1%

Caribbean0%

Scandi3%

Far East27%

N. America SHA totals regional dist.

Australasia4%

EasternEurope

1%

WesternEurope

36%

Far East45%Middle East

1%

SouthAmerica

1%

Scandinavia2%

NorthAmericaCanada

HKG Totals regional dist.

Africa1%

Aus/NZ6%

WesternEurope

28%

Far East55% Middle East

1%

South America0%

Scandinavia1%

North AmericaCanada

Eastern Europe1%


GTA at international travel fairs


Politics


SWOT analysisUnique selling points Challenges

Opportunities in China Market concerns

First European company with Inbound/domestic license.Strategic locations in ChinaTechnological advantageWorldwide support network for sales, distribution and service.

Technology available is not matched by current infrastructure

Prevalent business model is different to gta’s

First mover advantage

Fast growth in all tourism areas

Expanding middle class

Relaxation of outbound travel regulations

Increased exposure of China abroad

Recurring disasters/global politics

Competition increasing from 2005

Protectionism for local companies





Lostrip.com hotel booking demo


Contact:

Roy GraffLondon, UKEmail: [email protected] Tel: +44 20 3239 9688 Mobile: +44 7821 093

199 Consultancy service:Consultancy service:

market access, marketing strategy, public relations, deal brokering

Localisation:Localisation:

tourism marketing materials, websites, press releases

Event management:Event management:

exhibitions, product launches, trade fairs, business trips

Representation:Representation:

China sales and marketing representatives