THE CHINESE TRAVELLER - DAVE RUMSEY CEO, ASAP+ daverumsey - Visit Finland

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THE CHINESE TRAVELLER - DAVE RUMSEY CEO, ASAP+ daverumsey - Visit Finland
THE CHINESE TRAVELLER

19TH OF JANUARY 2018
PREPARED BY

          DAVE RUMSEY
          CEO, ASAP+

      daverumsey
THE CHINESE TRAVELLER - DAVE RUMSEY CEO, ASAP+ daverumsey - Visit Finland
24/7-365
DIGITAL
WITHOUT
COMPROMISE
THE CHINESE TRAVELLER - DAVE RUMSEY CEO, ASAP+ daverumsey - Visit Finland
SUPERNODES
 OF THE EAST
     “[…] So we're in mainframe 2.0 and these servers
     grew, coalesced and became the Googles and the
     Facebooks. We're connected to computers we don't
     own. Our activity has given them extraordinary power.“
     - WIRED UK, December 2017
THE CHINESE TRAVELLER - DAVE RUMSEY CEO, ASAP+ daverumsey - Visit Finland
WECHAT &
                                                                         ALIPAY ECOSYSTEMS
                                                                                                                                                                                90

                                                 SOCIAL                        FINANCE                                          FINANCE
                                                   9                              9                                                35
                                                                                                   TWO
                                                                                                 CHINESE
                                                                                                SUPER APPS                                                               39
                  40                                   UTILITIES & SOCIAL SERVICES              THAT BLUR
                                                                                                 ALL LINES
                                                                     6                                                                            UTILITIES &
                                                                                                             TRANSPORATION         SOCIAL           SOCIAL

         29                                                  TRANSPORATION                           OF            10                8             SERVICES
                                                                                                                                                       8
                                                                   4
                                                                                                 CHINESE
                                                                                 ENTERTAINMEN
                                                                                                  DIGITAL
                                           DINING                MEDIA
                                                                                       T
                                                                                       2
                                                                                                   LIVES.     SHOPPING       COMMUN-         ENTER-       EDU-
                                                                                                                                                                  13
                                              3                    3                                             6            ICATION       TAINMENT     CATION
                                                                                     SHOPPING                                    5              5          4

  6                                                                                     2

                                     COMMUNICATION              HEALTH               CHARITY                  DINING          CHARITY        HEALTH      MEDIA
                                          1                       1                     1                        3               3             2           1
 2011     2014    2017                                                                                                                                            2011   2014   2017
                                                               WECHAT                                                           ALIPAY

Source: MGI, China’s economy a leading digital force, 2017
THE CHINESE TRAVELLER - DAVE RUMSEY CEO, ASAP+ daverumsey - Visit Finland
THE CHINESE TRAVELLER - DAVE RUMSEY CEO, ASAP+ daverumsey - Visit Finland
WITH MOBILE IN CHINA
TIME SPENT ON WECHAT VS TIME SPENT ON MOBILE IN %                                            More than

                                                                                      1/3
26.5%     29.4%   31.9%   35.5%   34.1%   33.7%   35.2%   Out of all mobile
                                                          activities WeChat is
                                                          the number one app
                                                          for people to engage
                                                          with on their phone
                                                          and with additional
                                                          functions of every day     Of all time spent on mobile
                                                          living being             Chinese are engaged on WeChat
                                                          integrated each step
                                                          along the way, the
                                                          time spent on WeChat
                                                          increases constantly.
SEP       NOV     JAN     MAR     MAY     JUL     SEP
        2015                       2016
                                                                                                 Data source: Questmobile,2016
THE CHINESE TRAVELLER - DAVE RUMSEY CEO, ASAP+ daverumsey - Visit Finland
NAVIGATING WITHIN A
                                    FRAGMENTED LANDSCAPE OF
                                       SECONDARY SOCIALS* IS
                                      ESSENTIAL FOR TARGETED
                                             SUCCESS

Note:
This is just a small selection of
travel & OTA platforms available
THE CHINESE TRAVELLER - DAVE RUMSEY CEO, ASAP+ daverumsey - Visit Finland
INSPIRE   SOCIAL MEDIA, KOL
                                  & FRIENDS

ALL THINGS DIGITAL
                     RESEARCH &   SEARCH, VERTICALS,
                                  OTA & REVIEWS, OFFICIAL INFO
                       EVALUATE

                          BOOK    OTA, HOTELS & AIRLINES

                     EXPERIENCE   O2O, PAYMENT, QR, MINI
                                  PROGRAMS

                         SHARE    WECHAT & WEIBO
                                  REVIEW
THE CHINESE TRAVELLER - DAVE RUMSEY CEO, ASAP+ daverumsey - Visit Finland
PERSONAL
RECOMMENDATIONS
In line with the overall media consumption behavior of Chinese, digital
channels mobile and desktop bound are the top sources for inspiration,
activity research and overall decision making, even outranking the direct &
personal advice from friends and family. Online reviews of previous travelers
and social media influencers are shaping the perception of travel
destinations more so than any other factor.

         RESEARCH ON DESTINATION, TRAVEL PLANNING & BOOKING

76%                                                 Websites via computer

                   50%                              Websites or apps via phone

                   50%                              Personal recommendations

                            37%                     Advice from travel agents

                                        21%         Phone queries

                                          19%       Print Media

                                           18%      City or state tourism
                                                    offices & related

Source: Chinese Luxury Traveler, Hurun, July 2016
THE CHINESE TRAVELLER - DAVE RUMSEY CEO, ASAP+ daverumsey - Visit Finland
GOING BEYOND THE
NOTORIOUS SHOPPER
OTAs are prevalent among wealthier Chinese travelers and are only second
to personal contacts for inspiration. Overall all Chinese travelers are highly
reliant on social validation and interaction during their planning and
decision making process, regardless of OTA usage or individual booking.

KEY MOTIVATIONS FOR INT. TRAVEL ACROSS CHINESE
TRAVELLERS

38%                                                       Sight-Seeing

               27%                                        Cultural Experiences

                        22%                               Food

                                             6%           Shopping

                                                4%        Entertainment

                                                    2%    Adventure / Sports

                                                     1%   Wellness

Source: Chinese Luxury Traveler, Hurun, July 2015
THROUGH THEIR
FAVORITE INFLUENCERS
iWom and careful shaping of opinions online are the most impactful way
for Chinese travelers throughout their journey, making social opinion
leaders even more significant throughout the marketing mix.

                              % OF RESPONDENTS WHO ARE
                              INFLUENCED BY WORD OF MOUTH
               AVERAGE
                                                           48%
                    China
                                                                      64%
                 Australia                                      51%
                   Taiwan
                                                                50%
             South Korea                                        50%
               Singapore
                                                            49%
                 Vietnam                                   47%
                Indonesia
                                                          44%
                     India
                                                          44%
                    Japan
                                                    36%

Source: Criterio – The new digital traveler, 2017
TOURISM CAMPAIGN
REVIEW

 Food & wine influencer Shu Qiao – 8 short film series   Tencent video av. View 500k   IQIYI av. View 500k
       available only Chinese video platforms

#DISCOVERTHEHEARTOFTHELONGWHITECLOUD#
With first week of the campaign
11.5m impressions, 46,000 engagements and 2.3m video views
OVER CHINA
      FLIGHT BOOKINGS, OTAS VS AIRLINE APPS/WEBSITES

26%                     U.S.                                                     41%

20%                      UK                                                      42%

12%                 Australia                                                    49%

30%                   France                                                     42%

16%                 Germany                                                      22%

20%                   Russia                                                     32%

36%                   China                                                      11%

15%                    Brazil                                                    42%

       OTA                                  AIRLINE
                  Source: Phocuswright: Search, Shop, Buy, The new digital Funnel, 2016
THE MODE OF CHOICE

With their journey inspired by online influencers, and digital channels
holding the reigns over the decision making process, China’s love for
the mobile is also evident in the mobile share of bookings made.

CHINA MOBILE GROSS BOOKING (US$B) AND SHARE
OF ONLINE TRAVEL MARKET (%)

    MOBILE GROSS BOOKINGS (US$B)                                                     77%
    MOBILE SHARE OF ONLINE GROSS BOOKING (US$B)

                                                                59%
                                           50%
                       40%
   30%

   2014                2015                2016                2017                 2018e

                                      Source: IPSOS, 2017 Mobile Payment Usage In China Report
WITH DIGITAL WALLETS

 40%
 Of Chinese regularly carry less than

 100RMB in cash
While still being rolled out and more of a novelty in the Western markets,
Chinese have already adopted digital payment system as a natural part of
their lives. This doesn’t stop from travel related purchases or bookings,
which are more often than not now done via digital payments.

 MOBILE PAYMENT DURING TRAVELS [% BY PREFFERED
 PAYMENT METHOD]
 62%
                       57%                                57%
                                         56%
                                                             45%

       33%                                  32%                                     MOBILE
                                 25%                                                PAYMENTS
                                                 11%                                CASH
             3%             11%                                      4%
                                                                                    CREDIT
                                                                                    CARDS
      TAXI                HOTELS          TOURIST        GAS STATION
                                        ATTRACTION

                                         Source: IPSOS, 2017 Mobile Payment Usage In China Report
MARKETING TO THE
CHINESE TRAVELLER

                                                                                                JD & FLIGGY
    CHATBOT                         INFLIGHT                 WECHAT PAY
                                                                                                 STRATEGIC
  INTEGRATION                   ALIPAY PAYMENT              INTEGRATION
                                                                                               PARTNERSHIP

                                                                                            Chinese consumers will be
 Via Facebook messenger         On flights from china to     Chinese consumers can          able to book flights on JD’s
   passengers can book           Helsinki customers can    directly book and manage          new travel platform and
flights, check flight status.   make onboard purchases     flights via Finnair's official    manage loyalty program
Available in English Finnish           via AliPay                    account                   Launching early 2018
       and Chinese.
CONNECTING THE REAL
WORLD WITH WECHAT
As WeChat is the most used app in China, it’s O2O capabilities are
profoundly changing travel behavior. After the official introduction of Mini
Programs in 2017, WeChat Go is another step into connecting the real
world with WeChat as a digital hub, with special emphasis on the travel
industry.

DISPLAY            ONLINE VIDEO          SOCIAL                          SEARCH              E-COMMERCE
Instream Ads          Tencent Video      Moments                     Sogou WeChat                Tenpay & Wepay

           SUBSCRIPTION                 SERVICE                                    MINI
             ACCOUNT                   ACCOUNT                                   PROGRAM
               Brand Content          Brand interaction                          Services/Apps

                                                   Interaction Modules
                                                              E-commerce
                                                           Customer Service
                                                            Loyalty Program
                                                             Reservations
                                                                 O2O
                                                          Added value/benefits
                                                                  Etc.
LIKE AIR TO BREATHE
        CHANNELS USED TO
        SHARE OUTBOUND TRAVEL
        EXPERIENCES DURING &
                                      89.3%                                                      Before, during and
                                                                                                 after the journey,
                                                                                                 Chinese travelers are
        POST JOURNEY                  Share regularly

                                                                                 10.7%
                                                                                                 always on sharing the
                                                                                                 entirety of their
                                                                                                 experiences online
                                                                                  Rarely Share   with friends on their
     62.9%                45.6%         39.3%            36.5%          36.5%
                                                                                                 social circles. They
Social Media Channel     Micro-blog    Local OTAs       International   Forums                   do not curate after
                                                            OTA
                                                                                                 the trip but rather
                                                                                                 publish their
                                                                                                 experience in real-
                                                                                                 time.

                                                                                                      Data source: Questmobile,2016
WHAT DO YOU EXPECT WHEN DEALING WITH MULTIPLE
                                                                                       CHANNELS IN % OF RESPONSES?

CONNECTED JOURNEY                                                Integrated delivery
                                                                             service                                31

Digital is inextricably linked as a part of the Chinese           Same promotions
                                                                                                             24
                                                                      and rewards
travel experience. It never begins or never ends,
whether being before, during or after their trip, all
                                                                  Consistent brand
touchpoints are as important individually as they are                       image
                                                                                                           22
as a whole in conjunction with each other.

China is challenging the notion of what a true omni-               Integrated CRM                     13
channel approach can become by fusing digital and
real-life together in a single seamless experience.                  Same product                10
                                                                       assortment

Data source: BCG, Digital or Die, The Choice for Luxury Brands
THANK YOU.
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