Creating the Right Marketing Strategy for New Source Markets
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Creating the right marketing strategy for new source markets - Talk by Nicky Kriel at the International Conference on Tourism Technology #ICTT2017 in Cochin in Kerala, India.
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Creating the Right Marketing Strategy for New Source Markets
- 1. Creating the right marketing strategy for new source markets Nicky Kriel Social Media @NickyKriel #ictt2017
- 2. Tip of the iceberg
- 3. Emerging Markets are getting more affluent
- 5. Reasons for growth of International travel • Rising disposable incomes • Cost of travel has dropped • Easier visa applications and less restrictions to travel • Digital tools make planning and booking easier • Social media is a powerful motivator • Millennials are open to exploring other cultures
- 6. Don’t put all your eggs in one basket
- 7. Risks • Economic situation in the country • War, natural disasters • Diplomatic Relationships
- 8. Medium 3 M’s of Marketing
- 9. China is too big to ignore
- 10. Trends for outbound Chinese tourists • Growth lead by young professionals with high incomes • Sightseeing and shopping are key purposes of leisure trips. • 35% of the travel budget spent on shopping. • Moving from a price-based choice model towards an experience-based choice model. • Moving from traditional group tours to individual experiences.
- 11. In last 5 years • Better English spoken by the Chinese traveller • Looking for value for money • Higher expectations • Spending more • Hotel.com - Chinese International Travel Monitor (CITM) 2016
- 12. Biggest Challenges for Chinese Tourists •Language •Safety •Lack of China UnionPay card facilities
- 13. Are you trying to market to 1.4 billion people?
- 14. Spray and Pray
- 15. Or this person?
- 16. Or this person?
- 17. Customer focused
- 18. 5 Travel Personas Chinese International Travel Monitor 2016 – Hotel.com
- 19. The Customer Decision Journey Awareness Interest Evaluation Decision Action Referral Loyalty
- 20. Make it easier to find you
- 21. Forget Facebook and Google! • Think: • Baidu (Search) • WeChat (messenger) • Weibo (microblogging) • Renren (networking) • Youku (video)
- 22. daodao.com
- 23. Australia
- 24. Don’t Forget Mobile! More Than 70 Percent of Chinese Tourists Will Use a Travel App to Book Vacations. - Travelzoo Survey 2016
- 25. Tips for Digital Marketing • Website built for China rather than a translation • domainname.cn • Ideally hosted on a server within China • SEO and SEM on Baidu • Page names in both English and Mandarin • Information rich (longer pages with more information) • Mobile optimised • 50% of the population use Sina Weibo and Tencent Weibo
- 26. Make it easier for them to feel at home
- 28. Hilton Huanying • 110 Hilton Worldwide properties • 30 countries, 65 cities • Arrival Experience • Guest Room Amenities • Breakfast Experience
- 29. Scott Taber, VP of rooms in the Americas for Four Seasons • “Serving these customers can be as simple as having a local map or guestroom collateral translated into Mandarin. Also, there are some cultural sensitivities we always try to respect, things such as avoiding assigning rooms ending with the number 4 or assigning rooms at the end of a corridor. The Chinese customer likes red flowers, but we must avoid white and blue ones.”
- 30. Most common requests from Hotel staff • Free WiFi • Kettle • Chinese Breakfast • Slippers • Translated travel/tourism guides
- 31. Make it easier to see the sights
- 32. Don’t forget mobile! • Travellers are digitally savvy and connected • 89% use travel apps • 95% of Chinese tourists carry smartphones
- 33. Make it easier to shop 1 in 5 retail pounds spent each year by Chinese Tourists in the UK goes to one shop.
- 34. How Harrods is helping Chinese tourists to spend money • Installed China UnionPay Terminals • Mandarin speaking staff • Accept Alipay • Listen to Chinese Social Networks for comments about Harrods and implement changes based on feedback • High-end Chinese restaurant • Spend 5x the amount that American tourists spend • Chinese customers are young (20-25) and traveling independently of groups
- 35. Think Mobile
- 36. Listen to what tourists are saying •Before •During •After
- 37. Ctrip is the world’s 3rd largest review site
- 38. Summary • Know who your customers are • Make it easier for them to find you • Make them feel at home • Make it easier for them to be a tourist • Listen • Don’t forget mobile!
- 39. Any Questions? Get in Touch LinkedIn: Nicky Kriel Twitter: @NickyKriel Email: enquiries@nickykriel.com nickykriel.com Anywhere on Social Media
Notas del editor
- Tourism’s wide-scale demographic shift is one of the biggest trends reshaping 21stcentury travel. As income levels climb, masses of first-time international travelers are pouring out of China and the other (Brazil, Russia, India and China)BRICs, and gradually venturing out of other emerging markets, from Mexico and Malaysia to Turkey and the Philippines. Across nine key emerging markets, just 8 percent of holidays are international trips, according to Credit Suisse’s fifth annual study of emerging consumers Only 6% of Mainland Chinese people have passports
- within the next decade the number of households making at least US$100,000 annually will increase by 30 million, with one out of three of these households located in emerging markets. And just as affluence in these markets continues to rapidly grow, so does their spending on travel. World Economic Forum In 2014, more than half of all overseas travelers (excluding Canada and Mexico) to the US originated in emerging markets – versus the early 2000s when only a third of overseas travelers coming into the US came from these countries. Annual income of $35,000 per household is the estimated tipping point at which households start considering travel a viable option. (2.2 million rupees)
- Chinese Middle Class is estimated at 300 million
- In 2014 Conflict between Ukraine and Russia London luxury stores hurt by drop in Russian tourists' spending Political tensions between Ukraine and Russia mean tourists are spending while at home rather than abroad The upsurge in political tensions has caused Russian tourist spending in Europe to fall by 13% in June, according to tax-return specialist Global Blue.
- Going to be using China to illustrate how to create a marketing strategy for emerging markets
- Detailed explorers Mostly born in the 60s and 70s, are innovative and optimistic, like to learn and explore, and tend to plan their trips down to the last detail. Cautious connectors Most likely born in the 60s and 70s. They are responsible family people and travel to bond with loved ones. They likely come from lower-tier cities and prefer safe, family-friendly hotels. Experience seekers Tend to have been born in the 80s and 90s and be from top tier cities. They like stylish hotels and professional advice on local cultural activities. Experience seekers travel for enriching experiences, are independent and ambitious. Indulgers Mostly born in the 80s, they travel to indulge themselves and to demonstrate their power. They stay at higher star hotels and go on adventurous local tours. Basic pleasure seekers Millennials born in the 90s and unlike the other groups, more of them are women than men. They are aesthetically minded and travel for non-material enjoyment, seeking value-for money accommodation.
- Website, 96% of books of Chinese Customers occur on the Chinese language version of the website, social media are different
- Baidu is China’s no. 1 search engine. Similar to Google, it also provides maps, music, app stores & more. Alibaba, which had the biggest IPO in U.S. history, is China’s most popular ecommerce platform. Chinese social media is ruled by Tencent, the maker of WeChat. Globally, Tencent is also a leading game publisher. Sina Weibo like Twitter & Facebook used by 22% of the entire Chinese population and 71% of Chinese travels Tencent Weibo used by 200-250 million people
- TripAdvisor’s China brand. Its homepage is displayed in a different way providing more information and photos than its parent site does. daodao homepage’s length is more than double that of TripAdvisor.com homepage’s length
- Australia had 1.1 million visitors from China who stayed 43.2 million nights and spent $9.1billion. 515k returning visitors Chinese education visitors spend $4.1 billion Leisure shop $1.1 billion
- China is the leading country for mobile internet use. Optimise for mobile Fast loading if it takes more than 2 seconds, people bounce away Apps Travelzoo found that more than 85 percent of its Chinese clients said using an app was “the easiest” way to book tour packages, flights, cruises, and other forms of travel. About 70 percent of the Chinese respondents said they plan to use a travel app to prepare for a vacation in the future. More than 167 million consumers used their phones to browse travel sites or apps in 2015, compared to 134 million in 2014, according to a white paper published by tech marketing blog China Internet Watch. Remember that over 50% of internet use in China is via mobile technology, so present meta-copy accordingly
- According to Hotel.com Chinese International Travel Monitor. The top 5 requests by Chinese hotel visitors were Free wi-fi 71%), Kettle, Chinese breakfast, Slippers, Translated travel/tourism guides
- Chinese outbound travel is expected to grow at an unprecedented pace, with the number of outbound Chinese travelers expected to double from 100M to 200M by 2020, and Hilton is responding by enhancing its Huanying program. Credit: Hilton Hotels & Resorts
- Arrival Experience Huanying Greeting: a welcome note in Simplified Chinese Mandarin interpretation service (Many properties offer Mandarin speaking team member(s) as well) Guest Room Amenities Tea kettles Jasmine tea Slippers Dedicated Mandarin-speaking television channel Breakfast Experience Two varieties of congee with condiments, fried rice or fried noodles, a dim sum selection, fried dough fritters (crullers), hard boiled eggs, Chinese tea, fresh fruit and soy milk Chinese culinary utensils including chopsticks, Chinese spoons and a soy sauce dish
- FIT travellers are more likely to be travelling independently. Maps and tourist information in their language. Apps?
- Introduced UnionPay terminals in Harrods in 2011 saw 40% increase in sales Mandarin speaking staff display the Chinese flag on their gold badges Harrods Managing Director Michael Ward - What are the most effective marketing strategies that you’ve seen so far in reaching Chinese consumers? Social media: opinion formers—people who they trust who can give a really valid recommendation of the brand, so we’ve engaged with a lot of people who have that trust in our brand, love the values of that brand, and people trust those observations. We’ve done a lot of social media to get that sort of connection. Introduced more dairy-free options based on comment on social networks Some luxury retailers are claiming that 70% of their sales come from China
- Complete social media ecosystems connecting internet word of mouth and payment seamlessly. Payment solutions and services are deeply integrated e.g. Alibaba's Alipay and Tencent's Tenpay. WeChat is the go-to platform not only for e-commerce transactions, but also for P2P transfer, bill payment and even mutual fund investment. Boundaries between social media and e-commerce are blurred. Apps to help them – AR Skignz