Developing China Inbound Market

Haybina Hao

NTA Director of

International Development haybina.hao@ntastaff.com

859.264.6547

Title here NTA’s role in developing the China inbound market

The distribution system in China

US as an ADS country for Chinese travelers

Chinese inbound travelers 101

Branding/Marketing – 4 factors

Seminar Outlines

Title here

Map of China

Title here 2007: MOU signed between USA and China

2008: NTA initiated China Inbound Program – 1st

group leisure

2009: Applied for MDCP grant

2010: Established NTA Visit USA Center

2011: Awarded Certificate of Appreciation by DOC

2012: Awarded “Overall Performance – Gold” by

COTRI

History: NTA’s Involvement

NTA Visit USA Center

Title here

China Barometer

Title here New visa policies

State Dept. effort in China

FCS puts more weight in tourism sector

Brand USA

Visit USA Committee

How to Capture China Inbound Market

New in 2012

Title here

Press Conference in China

Title here

How to Capture China Inbound Market

CITM 2012 - Shanghai

Title here Over 22,000 TA’s, 1,500 authorized for outbound.

1. By ownership:

Government owned/public brand names: CITS,

CTS, CYTS, CITIC Travel, CCT

Privately/Collectively-owned: Shanghai Spring

Tour/Airlines, Flying Holiday

Foreign capital/joint venture: Hua Yuan Int’l

Travel

Two Categories of Travel Agencies

Title here 2. By business scope:

Brand name retailors

(domestic/inbound/outbound)

Whole-sellers (domestic/outbound): specialized

outbound markets: Caesar Travel for Europe,

TTS Global Travel for US/Canada

Online retailers: C-trip, Sina

Receptive operators (domestic/inbound)

Miscellaneous agencies

Categories of Travel Agencies

Distribution System

Title here

USA was voted #1 destination

two years in the row -

WHY?

Why USA?

Title here

Reasons to Visit USA

Sightseeing

Shopping

Driving

US brands experiences

Luxury activities, affordable prices

Scouting for homes/businesses

Education

Medical care

Things not available in China

Etc.

Title here Concept of time

Queuing

Noise control

Hot meals

Individualism/Collectivism

Superiority

Interpersonal connections

Thought patterns

Etc.

Cultural Differences

Title here Historically frugal/Price conscious

Seeing a lot in little time, like the “est”

Concerned for safety; less adventurous

Swift shopping

Photographing as proofs

Ease in following others

Prefer Chinese meals/hot tea/hot water

Tend to be relatively untidy

Chinese Travel Styles

Title here Short notices

Frequent changes with booking

Constant bargains with price

Seeking for quotes but no follow-ups

24/7 on call

Delayed payments and collection issue

limited services in certain tourist areas

Coordinating with suppliers

Overall “China-ready” preparations

Challenges for Tour Operators

Title here Limited Chinese expertise on staff

Limited budget in marketing

Limited manpower to tackle new markets

Prioritizing among all emerging markets

Coping with community/shareholders desires

Dealing with changing governmental policies

Challenges for DMOs

Title here Limited Chinese staff to facilitate communications

Unfamiliar with Chinese custom to provide adequate

service

Sales team unfamiliar with Chinese cultures to

generate effective results

Limited budget in marketing

May not be placed as a priority by Headquarters

Challenges for Attractions/Suppliers

Title here 1. Believing in your product/service with passion

2. Considering larger geographical collaboration

3. Telling stories

4. Communicating in Chinese language:

Marketing: Four Key Factors

Spoken Written

China Mandarin Simplified

Taiwan Mandarin Traditional

H.K. Cantonese Traditional

Title here

Branding: Connecting Human Feelings

Shandong”