2013 pata industry council meeting presentation slides on 28 april 2013, bangkok

Slide 1

Industry Council Meeting Sunday, April 28, 2013 08:30 10:30 World Ballroom C 23rd FloorCentara Grand & Bangkok Convention CenterBangkok, Thailand

Call to Order & IntroductionbyIndustry Council Chairman Scott Supernaw

Roles and Responsibilities of Industry Council Committee Members- PATA Bylaws

Announcement of New member by nominations:ChairmanIC Committee Member 2013-2015IC Proxies to PATA BoardNew Representative to PATA Board

Adoption of Previous MinutesIn Manila 29, September 2012

Speakers

Priyanka Gargav, Regional Manager Asia, TripAdvisor Wang Chunfeng, Vice President, Beijing U-Tour International Travel Service, China Chris Lee, PATA UK Chapter Chairman, Managing Director, LTC

Joe Nguyen,Senior VP - APAC, ComScore Inc.

An insight into macro-economic factors that are driving change across the APAC markets in 2013 and beyondby

Key Trends In Digital & TravelPATA Industry Council Meeting 28 April 2013Joe Nguyen, Senior Vice President, APAC | [email protected]

comScore, Inc. Proprietary.

comScore, Inc. Proprietary.The State of the InternetWhere does APAC rank with the rest of the world


comScore, Inc. Proprietary.Distribution of Worldwide Internet AudienceThe US is no Longer the Centre of the Online UniverseSource: comScore MMX, December 2012, Worldwide 15+, Outside US

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Source: comScore MMX, December 2012, Worldwide 15+, Time Spent and Growth Across RegionsUS Users Spent Most Time, Whilst Asia Pacific Outgrows Rest of the World+7%+7%+6%+2%+1%

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Source: comScore MMX, April 2013, 15+Online Audience Across APACDominated by China, Japan and India

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Source: comScore MMX, April 2013, 15+Online Audience Across APACLed by Vietnam outside of the top 3, developing markets have room to grow

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Online Travel SectorOTAs, Hotels, and Airlines across APAC


comScore, Inc. Proprietary.Asia Pacific Travelers Continue To Come OnlinecomScore Media Metrix Media Trend: Asia Pacific

comScore, Inc. Proprietary.Chinese Travelers Make Up The Bulk Of The IncreasecomScore Media Metrix Media Trend: China

comScore, Inc. Proprietary.OTA, Airlines and Hotels are fairly evenly matched. The big gap means that there is not much overlap particularly between OTA and hotels17

In India, Online Travel Agents RulecomScore Media Metrix Media Trend: India

comScore, Inc. Proprietary.The main increase in travel sector has been attributable to OTAs18

Japans Travel Market MaturescomScore Media Metrix Media Trend: Japan

comScore, Inc. Proprietary.In a mature market, you see the seasonality more clearly. OTAs and hotels track each other.19

Southeast Asia Is Also SteadycomScore Media Metrix Media Trend: Southeast Asia

Holiday Planning

comScore, Inc. Proprietary.While OTAs and hotels track each other, during Holiday planning OTA and Hotel increase, but airlines unchanged.20

OTAs Continue To Be Strong In Europe

comScore, Inc. Proprietary.APAC travel continue to rely on the major OTA for inbound.21

Digital ConsumptionMulti-Device Usage is becoming more and more prevalent across the globe


comScore, Inc. Proprietary.People are consuming mediaFrom different places.22

Digital Consumption Used to be Simple

PC/Mac

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comScore, Inc. Proprietary.Digital consumption and measurement used to be fairly simple but MMX MP marks the reality that the digital landscape is no longer just about the personal computer. When the Media Metrix service launched over 16 years ago, it utilized one tracking meter based on one operating system, which captured just about 100% of the landscape.

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not anymoreToday, new platforms are being adopted at increasingly higher rates

TabletPC/MacTVSmartphone

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comScore, Inc. Proprietary.The digital experience is now scattered across a number of different devices and platforms, all of which demand high-quality, objective audience measurement. MMX MP is more than just an evolution of product, it is an evolution of methodology.

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Tablets in the U.S. reached 40MM owners in Two yearsSmartphones took Ten Years to Reach that Same LevelSource: comScore MobiLens & TabLens U.S

40 Million100 Million


Mobile & Tablet Devices Shifting How Users Connect Across the Globe Source: comScore Device Essentials, Dec-2011


Between 2011 and Mid-2012, Asians Embraced Devices= non-computer totalSource: comScore Device Essentials TM International Data June 2012


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Everyday..

CONTENT is consumedacross multiple DEVICESby the same PERSONSmartphonesrule our morningsTablets PCsrule our evenings rule our daysOne Day

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comScore, Inc. Proprietary.We observe the same tagged content consumed across different devices, and identify hou

We need an asset to tell us duplication. The Dynamic panel is NOT a product. It is NOT something we can sell. It is a resource for us to understand multi-platform usage. The 6 steps below outline the process by which we use the dynamic panel.Analyze the census network of 120MM I.P. address in the United States

Derive Static IP address households

Derive Static IP address households that use a static Cookie

Derive SINGLE-PERSON Households within the above derived subset. This allows us to provide person-level insights for this product.

Use the Dynamic Panel to make a Self-improving training algorithm that teaches comScore HOW people consume data in a multi-platform world. This further tells us person and entity level overlaps for audiences across platforms.

Generate a generalized function using the above training algorithm, our single-platform panels and UDM methodology to apply this generalized algorithm to EVERY ENTITY be it tagged or not.

Example:2 People2 PCs2 Macs2 iPads2 iPhones= 8 devices, All connected to 1 WiFi connection_________________________Added together they all live on the same IP address, and we can identify the household, and essentially empanel them.

We can look at the census data and see 9 devices, knitting them together, and creating one Household.

seholds based on the IP they connect through.28

An Average Monday in the UK: PCs for Lunch, Tablets for Dinner

comScore, Inc. Proprietary.Source: comScore Device Essentials, January 2013, SingaporeSingapore: Mobile Jolt In The AM, Tablet Binge Late Night

Tablets popular at nightPCs dominate working hours

Late night(12am - 7am)Early Morning(7am 10am)Daytime(10am 5pm)Early Evening(5pm 8pm)Prime(8pm 12am)

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comScore, Inc. Proprietary.Can cover one country30

Key Trends In Digital & TravelPATA Industry Council Meeting 28 April 2013Joe Nguyen, Senior Vice President, APAC | [email protected]


comScore, Inc. Proprietary.Opportunity and Threat in the E-MarketBy

Worlds largest travel site

The New E-MarketHow to win the ever connected travel consumer

Bangkok, April 23, 2013

By TripAdvisor user JakubLarysz, Jan 2013

We help people plan and have the perfect trip.

Difficult but very nice! Reviewed January 23, 20137 people found this review helpfulIt takes 5 hours to reach Trolls tongue (Trolltunga). But the view and place is really nice. If you are comfortable with hiking just take a lunchbox and go there! :)

More than 100 million travel reviews and opinions from travelers around the world:

259,000+attractions

680,000+hotels

1,100,000+restaurants

116,000+destinations

14,000,000+candid photos

The travel cycle

Inspiration > Planning > Travel > Review

I Plan &Book


Source: travel.nationalgeographic.com

Mobile is changing the game- I Dream

21languages

31Mappdownloads

80City Guidecities

45M*monthly uniques* Average monthly unique users on mobile devices for Q4 2012, according to TripAdvisor log files


72% of travellers worldwide say the ability to book via mobile devices is usefulThe TripBarometer by TripAdvisor is based upon an online survey conducted in Dec. 2012 Jan. 2013. A total of 35,042 people participated in the online survey from 26 countries spanning 7 regions. The sample is made up of 15,595 consumers and 19,447 businesses, making it the worlds largest combined accommodation and traveler survey.

Im There

Im There


Im Back


Think of the travel cycle


THANK YOU

China...Poised for Growth Knowing the customerBy

Understanding China Outbound TravelFrom UTours PerspectivePresented by Dr. Wang Chunfeng, VP-DevelopmentBeijing UTour International Travel Service Co. Ltd., China28 April, 2013 Bangkok

Good Morning! Ladies and GentlemenI am very happy to be here, Bangkok. And I feel pleasure to speak at todays PATA IC meeting.47

Outbound Market Updates

1

Performance of Travel Services

2

Suggestions for Tapping into the Market

3Contents

My presentation consists of three topics.

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Outbound Market Updates

1

The first topic is Outbound Market Updates49

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POSITIVE FACTORS

More Leisure TimeVISA Relaxation Rapid GDP Growth Expanded Union Pay SystemConvenient TransportationMore Disposable IncomeStronger RMBChina Outbound Travel has maintained a rapid and steady growth for the last decade due to many positive influencial factors, which has been attracting the worlds attention.Positive Factors for the Growth

As you have knew, China Outbound Travel has maintained a rapid and steady growth for the last decade, attracting the attention from the world. It closely connected with many positive factors, such as More Disposable Income, More Leisure Time of Chinese people.

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Outlines of the Chinese Citizens Travel Initiatives 2013-2030 emphasizing the importance of travel as an avenue to enhance both the nations economy as well as individuals quality of life.

The new Chinese President Xi Jinping even predicted that 400million Chinese will travel abroad in the next 5 years.

Tourism Law enacted by Chinese government on 25th April, 2013 will guarantee the healthy progress of the travel and tourism industry.

Favored Policy and Situation

Outlines of the Chinese Citizens Travel Initiatives issued by the State Council this year will further facilitate the development of China Travel industry.400million Chinese travelling abroad will contribute to the global economy. 51

Source: China National Tourism Administration

The average annual growth rate of China outbound travel departures was at about 21.24% over the period from 2002 to 2012.

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Source: State Administration of Foreign ExchangeOutbound Travel Expenditures (in billion US$)In 2012, China spent USD102 billion in outbound tourism, overtaking Germany and USA, the two largest spenders in 2011 to the top list

In 2012 China outbound travel expenditures reached 102 billion US dollars, overtaking Germany and USA, being the largest spender.

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First StopDepartures (in millions)1Hong Kong SAR34.962Macau SAR21.503Korea (ROK)3.004Chinese Taipei2.635Thailand2.246Japan1.967Cambodia1.858USA1.729Malaysia1.3710Vietnam1.34

DestinationArrivals (in millions)1Hong Kong SAR34.912Macau SAR16.903Korea (ROK)2.834Thailand2.795Chinese Taipei2.596Malaysia1.567Singapore1.528Japan1.439Vietnam1.42910USA1.38

PATA Stats:Top 10 Arrivals from China 2012CNTA Stats:Top 10 First-StopDestinations 2012 Source: China National Tourism AdministrationSource: PATA

Comparing Top 10 First-Stop Destinations, based on departures by CNTA with Top 10 outbound destinations, based on Arrivals from China by PATA, there is a little bit deference.

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Performance of Travel Services

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The second topic of my todays presentation is Performance of Travel services in China.

Two days age, Mr. Scott Supernaw told me in USA the tour operator is the travel wholesaler, the travel agent is the retailer. In China, the situation is different. Here travel services are firms with the license of outbound business, including tour operators, travel agents, travel wholesalers and retailers. 55

Travel Services Scale in China Source: China National Tourism Administration

In term of the Regulation on Travel Services issued by the State Council, travel services applying for the license of outbound business should meet two qualifications:One is gaining the license of travel business for full two years; another is never violating the legal rights and interests of tourists.56

Source: China National Tourism AdministrationBusiness Handled by Travel Services (1)

The average annual growth rate of departures by travel services was at about 22% over the period from 2002 to 2012.

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Source: China National Tourism AdministrationFirst StopDepartures (in million)1Hong Kong SAR6.282Macau SAR3.283Chinese Taipei2.764Thailand2.705Korea (ROK)2.256Singapore1.367Japan1.168Malaysia1.119Vietnam0.6410France0.63

Top 10 First StopDestinations

DestinationMarket Share (%)1Asia822Europe113Oceania34America2.65Africa0.86Other0.6

Destination and Market Share Business Handled by Travel Services (2)

58Numbers of China outbound travel to Asia destinations are much higher than to the other.This is unlikely to change for a while.

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201220111Guangdong1Guangdong2Beijing2Beijing3Zhejiang3Zhejiang4Shanghai4Shanghai5Shandong5Liaoning6Jiangsu6Shandong7Hubei7Jiangsu8Fujian8Sichuan9Sichuan9Hunan10Liaoning10Fujian

Top 10 Source Markets 2011-2012 Business handled by Travel ServicesSource: China National Tourism Administration

It is the objective fact that there still exits a big gap between China Eastern area and Midwest area in aspect of economy development. The Eastern area is the most important source market, and this situation will relatively last for a long time.

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Options for Tapping Into the Market

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How to tap into China outbound market?Considerations I know for sure is how China travel services choose foreign partners, and how foreign travel services choose Chinese partners.

Cooperation Among PlayersThere are many differences between businesses in source markets and in destinations. Cooperation and mutual benefit are the operating principles for most of travel services.

Charter Tours Created by UTour and AirlinesCruise Tours Created by UTour and Cruise Companies

Cooperation and mutual benefit are the operating principles for most of travel services, especially for middle, small companies.For further understanding China travel services, please let me briefly describes types of China travel services.

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Travel WholesalersTravel AgentsTravel RetailersTour OperatorsTypes of China Travel Services

Based on business models, China travel services can be divided into Travel Wholesalers, only distributing products to travel agents or distributing products to both travel agents and retailers; Travel agents, only distributing wholesalers products to retailers or distributing wholesalers and their own products to retailers; Travel retailers, only selling travel agents products to customers or selling both travel agents and their own products to customers; The last one is Tour operators, providers of products and services, usually playing wholesalers and retailers at the same time, for example UTour.

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Development of Wholesalers and RetailersForward / DownwardWholesale

The Integration of Wholesale and retail

Wholesalers

Backward / UpwardWholesale

Providers of Products and Services

After 20 years development there have been several large-scale travel wholesalers and tour operators specializing in the field of outbound business.Development trends of large-scale wholesalers is from wholesale to the integration of wholesale and retail forward; from wholesale to providers of products and services backward.

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4-Level Structure of Distribution

Branch Offices in Cities & Towns Provincial Branch Offices Regional Branch OfficesNational Head Office

Basically large-scale wholesalers have 4 level structures of distribution.Most of them are located in China Eastern area which is the most important source market , as well as in Shenyang, Xian, Chengdu and Wuhan, capital cities of Mid-West provinces.

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Source: State Administration of Foreign Exchange : China National Tourism AdministrationCreation of High - Quality Products

Over the period from 2007 to 2012, China outbound travel expenditures have maintained an average annual growth rate of 27%. Actually it is higher than that of departures.

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UTour Departures growth rate 2012 Source: China National Tourism Administration UTourShort-Distance Outbound Travel is the higher increase in public demand.

Long-Distance Outbound Travel is on the stage of steady growth..

Short-Distance Outbound Travel is the higher increase in public demand. Destination includes Southeast and Northeast Asia.For Long-Distance Outbound Travel, usually the flying time is above 8 hours or the tour arrangement is over period of 8 days, is on the stage of steady growth. Markets that are showing stronger include Oceania, Africa and America.

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Group Package Tours constitute the leading force in China outbound travel.

FIT, Family Tour and Special Interests Tour are popularity among highly-educated people and post 80 and 90 generation.

Group Package Tours constitute the leading force in China outbound travel.

FIT, Family Tour and Special Interests Tour are popularity among highly-educated people and post 80 and 90 generation67

Classic SeriesSelected SeriesLuxury Thematic SeriesMember Private SeriesIsland Tour in Southeast AsiaOne Thousand Chinese People Celebrating Lunar New Year in Disneyland, Paris

French Wine-Tasting Tour

The Arctic Pole Cruise

The System of UTour Products

Let me demonstrate utour product system. From bottom to top we have classic series, selected series, member private series and Luxury thematic series.

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Face ofN0.4 of Top 100 Largest Chinas Travel Services 2011 (Latest), Ranked by China National tourism Administration. No. 2 of Top 10 Largest Chinas Outbound Travel Services 2011 (Latest), Ranked by China National tourism Administration.One of Top 10 Largest Chinas Outbound Travel Wholesalers 2012, Ranked by Industrys Well-Known Media Best of The Best in Tourism.

As a professional and reliable Travel Operator,Utour represents successful China Travel Services.

Ladies and Gentlemen:China has become the world's second - largest economy and its tourism industry has entered into another period of rapid development.

It's absolutely true that opportunities and challenges coexist, but for sure more opportunities than challenges.Utour is very fortunate to be in partnership with everyone here.Thank your for your attetion.

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Member of AND Founded in 1992, head office in Beijing, branch offices in Shanghai, Chengdu, Shenyang, Xian, Wuhan and Harbin

More than 1000 employees

Over 2000 sales agents all over China, 30 directly-managed retail stores in Beijing

Business operations in over 100 outbound tourism destinations

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PATA Exchange & PATA AcademyBy

PATA ExchangeLondon, March 2013

A Presentation by PATA UK ChapterChairman, Chris Lee

The Concept

PATA Exchange is a contracting eventPacific Asia sellers meet UK tour operator PMsMonday after ITB5th year, continued to grow year on year Established event in UK Travel Trade Calendar

Event Logistics

This year held in Central Hall WestminsterMuch larger location taking up to 70 tables (up from 42)Sales start up to 11 months in advance Exhibitors or sellers include:Tourist OfficesAirlinesHotels Cruise Companies Destination Management Companies

Charges

300+VAT for PATA UK Chapter members400+VAT for non-membersFREE to tour operators to attend

Event Management

Bespoke online appointment system purchased Dedicated websitewww.pataexchange.com. Website allowed exhibitors, or 'sellers', to: RegisterAdd their company profiles and company logos to the siteSecure pre-arranged appointments15 minute appointments5 minute break between appointmentsMaximum of 20 appointment slots available

The Appointment System

Buyers register for the event onlineBuyers request appointments with SellersSellers can also request appointments with Buyers When a seller or buyer clicks to book an appointment, the person they want an appointment with receives an email notification and a click-through link to 'accept' or 'decline' the appointment.

Format

09.00 Sellers set-up10.00 Buyers arrival with tea & coffee10.30 Appointments begin13.00 - LUNCH BREAK13.30 Appointments resume17.30 - NETWORKING DRINKS RECEPTION18.00 - Event closes

Promotion

Promotion commences once 40 Sellers signed up PATA UK Chapter Database Member Tourist Offices Databases Media Sponsor, Selling Long Haul Database New for 2013 - Hosted Buyer Programme

Sponsorship

Media Sponsor Selling Long HaulUKs monthly trade magazine promotes the event both via email and through the magazine. SLH also guarantees a full page of coverage in return for branding on all promotional activityDrinks Reception Sponsor Tourism Australia Tourism Australia provide wine for the drinks reception after the event in return for branding on all promotional activity.Event Sponsor Reed Travel Exhibitions (WTM) Reed contribute 1,500 in return for branding on all promotional activity. Dedicated e-newsletter to PATA database and presentation about WTM during the drinks receptionNew for 2014 Lunch Sponsor PATA UK is in discussions with a couple of airlines to sponsor lunch in return for branding and a short presentation.

In Summary

Record number of buyers Record number of sellers PATA UK Chapters most profitable event Major membership recruitment event New for 2013 - PATA Luxury Exchange, Manchester

PATA Academy

A Presentation by PATA UK ChapterChairman, Chris Lee

Past Academy

Now in its 4th yearOn-line Training Scheme 18 Destination Modules Best Value UK On-line Training Scheme Facilitates free membership to Travel Sales Staff

Present Academy

New for 2012 - Sales Incentive introduced Love to Shop VouchersMonthly sponsorship by tourist offices 13% increase in modules taken Example: PNG over 120 agents completed moduleNew for 2013 - Hotel and Airline modules introducedTraining over 4,260 Agents and Operators online

Future Academy

More hotel and airline sign ups, target 10 in eachIncreased investment in Training IncentiveInvestment in improved analytics Social Media Links Discuss opening to the Irish market

In Summary

PATA Academy is key membership benefitPATA Academy is key to membership recruitment PATA Academys potential for worldwide PATA family

Q & A

Summary& Other Business

Thank youfor your participation

IC Chairman Scott [email protected] Vice Chairman Bill [email protected] Staff Liaison Ivy [email protected]

Chart116.628.934.545.857.483.2

The Average Annual growth rate at about 21% .Total DeparturesTotal Departures 2002-2012 (in million)

Sheet1200220042006200820102012Total Departures16.628.934.545.857.483.2Departures by Travel Services3.75.68.410.916.628.3

Chart115.419.724.336.254.9102

Outbound Tourism Expenditures (in billion US$)

Sheet1200220042006200820102012Outbound Tourism Expenditures (in billion US$)15.419.724.336.254.9102

Chart1219821962

2303292%19628%

Sheet1Travel Services without the License of Outbound Business21982Travel Services with the License of Outbound Business1962

Chart13.75.68.410.916.628.3

Departures by Travel ServicesDepartures by Travel Services (in million)

Sheet1200220042006200820102012Departures by Travel Services3.75.68.410.916.628.3

Chart128.354.9

1Composition of Total Departures 201234%

Sheet11By Travel Services28.3Other54.91.21.2

Chart1664219842191514126961231424

by Utourby Travel ServicesTotal

Sheet1by Utourby Travel ServicesTotalAsia664219Europe84219Oceania151412America696123Africa1424