1 travel market insights get china ready presented by: scott johnson president travel market...

1Travel Market Insights www.travelmi.com

Get China Ready

Presented by:

Scott JohnsonPresidentTravel Market Insights Inc.

Get China Ready – Research…

ONE Travel Conference for Shopping, Dining & Cultural Tourism

January 27 - 29, 2015Hilton McLean Tysons Corner,

Virginia (Washington DC)

http://www.travelmi.com/


Who is Travel Market Insights

• International Travel:

Inbound, WITHIN, and THROUGHOUT USA.

• Consumer Insight– Actual visitors to USA

• Trade Insight– China Travel Trade

Barometer

• Strategic Analysis– Retail, DMO’s,

Attractions

• Optimal Market Distribution– CCR Analysis Matrix

• Shift Matters– Travel Monitor

• Why = Analysis



Get China Ready Research

• China outbound travel – always transforming• Change requires adjustment

• Adjustment requires research and analysis



Putting China Into Perspective

• China Headlines:– Huge potential:

98 million border crossings in 2013

• Behind The Headlines:– Border crossings are

not equal to travel



Putting China Into Perspective

China arrivals projected to increase 172% 2013-2019 (USDOC,NTTO Forecast)

China will be the top overseas visitor market to the USA



Behind the Headlines USA?

4,910

4,404

3,691

2,950

2,1581,847 1,788

1,5101,285 1,265

1,109835 760 670 637 559 535 487

US Arrivals Forecast 2019 (in 000)

Souce: Travel Market Insights - Based on USDOC, NTTO Forecast October 2014



Perspective - Behind the Headlines

2,806 2,572

2,162

1,556

1,150 1,131 1,108 981

696 695

UnitedKingdom

Japan Brazil China Germany Australia France Korea Italy Colombia

Forecast: Leisure Arrivals in 2019

Arr

ival

s in

(000

)

Souce: Travel Market Insights - Based on USDOC, NTTO Forecast Oct. 2014



2012/13 China Key Shifts

Key Market Shifts from China to USA:

• Business travel continued to contract, leisure grew in 2013.

• Fewer Chinese visited multiple destinations – more visited only one destination in 2013.

• Package travel and travel to visit friends and family declined.

• Chinese visitor’s length of stay in the USA was shorter in 2013 compared to 2012 (down 5%).

Key Drivers:

• Demand: more FIT, independent and experiential travel.

• New Policies: Anti-corruption campaign and Tourism Law.

Net Effect:

• Increased market share to icon cities (NYC, LA, and San Francisco).

• Fewer business travelers, visiting fewer destinations = Good for destinations visited, but lower geo-equity. Less spend on hotel, dining, beverages due to anti-corruption campaign.

• Growth in leisure as a share of visitors with more FIT/Holiday travel = shorter stay and decrease in geo-equity.

• Trade restructuring (Airlines, Operators, Agents, Inbound TA).



10.2

10.0

29.4

2.1

7.5

11.0

5.3

1.3

2.6

1.4

0.7

1.5

4.3

18.4

45.9

31.2

16.6

10.9

6.3

5.8

31.4

2.2

6.6

9.1

4.8

2.1

2.4

2.2

1.2

1.0

3.0

13.6

46.1

33.7

21.0

9.5

- 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0

MASSACHUSETTS

BOSTON***

NEW YORK CITY-WP-WAYNE***

PHILADELPHIA***

CHICAGO***

DIST. OF COLUMBIA

FLORIDA

MIAMI***

ORLANDO

ATLANTA

MARYLAND

VIRGINIA

TEXAS

LAS VEGAS

CALIFORNIA

LOS ANGELES-LONG BEACH***

SAN FRANCISCO***

HAWAIIAN ISLANDS

Percent of Visits

China Market Share Shift 20132013

2012

***= Metropolitan Area

2013

Increase

Decrease

Distribution Shift



China Travel Trade Barometer 2015 Travel Product Demand

Accommodation near but outside city center

Destinations/attractions

Multi-destination tour combining top and lesser known

Fully organized tour with escort

Accommodation in city center

Shopping for quality brands

FIT Dynamic packages

Discounted shopping

Duty free shopping

Multi-destination tour to top familiar destinations

0% 10% 20% 30% 40% 50% 60% 70% 80%

Travel Product Demand (higher + much higher)



China Travel Trade Barometer 2015 New U.S. and China Visa Policy

Greatly Increase Book-ing

Moderately Increase

Somewhat Increase

No Change

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

33%

46%

13%

8%

Chart Title

Influence on booking for travel products to U.S. Promotion/Sales on travel products to U.S.

Much higher promo-tion/sales

Higher promotion/sales

Somewhat Increase

No change

0% 10% 20% 30% 40% 50% 60%

38%

50%

8%

4%

• Due to the new U.S. and China visa policy 92% of the trade reported bookings would increase!

• 96% of the respondents indicated they would promote and sell

product focused on the new policy.



China 2015: Drivers and Outlook

2015 Outlook• USA outpaces most for arrivals

and spending.

• Continued investment in U.S. property/businesses and student educational travel.

• China-based companies expand web/social for “FIT” travel.

• FIT travelers will book (somewhat) familiar destinations.

• Shorter trips – focus on one, two and maybe three destinations.

• Vacation/Holiday travel increased.

• Business travel refocused.

Key Drivers

• Approved Destination Status (ADS) policy

• Demand Shift

• Tourism law – more professional

• Anti-corruption campaign

• Visa Changes

• Increased Flight Capacity

• Distribution Expansion – traditional, web, mobile, social



2015 China Ready Research

China Travel Trade Barometer

Custom Consumer Analysis – China to your destination and competitive destinations (all USA)

Chinese Student and Education Travel to USA

China Reports: Leisure, Business, First-time Visitors

China Annual Shopping Study: in-depth, brand, destination specific (actual visitors to USA)

Contact: [email protected] 1-518-668-2559


mailto:[email protected]


Market Shifts – Always Changing



Scott C. JohnsonPresidentTravel Market Insights Inc.

Phone: 518-668-2559E-mail: [email protected]: www.travelmi.com


mailto:[email protected]

1 travel market insights get china ready presented by: scott johnson president travel market...

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