China - Singapore Tourism Board

Rise of the Chinese Free &
Independent Travellers
(FITs)
AGENDA
• Growth of the Chinese global tourism market
• Chinese traveller behavioural traits
• Overview of 2014 market activities and 2015 key
projects
• Possible solutions to grow the FIT segment
• Panel discussion
China Outbound Tourism: growing by leaps and bounds
2014
107
19.5%
164.8
3
Outbound Tourism Expected to Outpace
Domestic Tourism
Economics:
• China on track to become
the world’s largest
economy by 2017
(predicted by WTO)
• Rising disposable income
level leading to more
Chinese choosing outbound
destinations over domestic
trips
Outbound Tourism:
• China’s President Xi
Jinping noted in April
2014 that China will
likely have 400 million
tourists traveling
abroad in the next 5
years.
• Outbound tourism
from the Tier 2 cities
will soon be the
driving force
Data Source: China National Tourism Administration
Digital Infrastructure
• China’s online travel
industry is estimated to
grow in double digits
year-on-year with online
travel revenue hitting
about $75 billion by 2017
2014 China Market Performance Overview
2nd largest source
market in terms of VA;
2nd market by TR
TRexSEG
fell 11.6% to S$2.6 bil
Average Length of Stay
rose 44% to 4.3 days
Immerse in local
cultures
through food and
ethnic precincts
*Refers to ground expenditure.
Visitor Arrivals
fell 24% to 1.7 mil
No. of Chinese coming
to Singapore on monodestination trips
grew 22%
Per capita expenditure* grew
14%
Rely on social media &
online sites to make travel
decisions
China Market Performance Overview
Arrivals from PRC have been declining since Oct 2013, circumstances not in our favour.
1st Oct – Tourism Law, clamp down on low fare tours
1st Nov – Pheu Thai Party passed amnesty bill, triggering protest
8th March – MH370
2nd May – Anti Chinese demonstrations in Vietnam
Visitor Arrivals ('000)
2,500
3,500
2,270
2,034
2,000
1,722
1,577
1,500
Tourism Receipts ('mil S$)
1,000
500
2,634
2,516
2,500
2,000
1,171
2,981
3,000
2,110
1,644
PR China
became
1,500
largest TR
1,000
source market
in 2013
500
-
2010
2011
2012
2013
2014
CAGR 2010-2013: 25%
CAGR 2010-2014: 10%
YoY
growth
2010
2011
2012
2013
2014
CAGR 2010-2013: 22%
CAGR 2010-2014: 12.5%
2011
2012
2013
2014
2011
2012
2013
2014
35%
29%
12%
-24%
28%
19%
18%
-11.6%
Source: STB DE Cards
Note: The slides are property of STB and shall not be reproduced and/or redistributed without permission from STB.
Singapore still intrigues the Chinese, however…
Chinese favours other destination as well:
Top 10 Outbound Destinations by Travel Agencies Number of Chinese Tourists During
October 2014 (Golden Week)
(3Q)
Destinations
Chinese Tourists
Hong Kong
1,159,952
Macao
752,000
Thailand
501,043
YoY growth: 67%
Korea
160,000
Singapore
134,000
YoY growth: 13.6%
7
Recognizing Threats, Identifying Opportunities
• Singapore faces stiff competition from other
destinations
However, we see the SG market shifting towards:
•
•
•
•
Mono-SIN
Longer Stays
Higher Spend
FIT (incl Tier 2 cities)
8
WHO is the
Chinese
traveller?
11
Our China Target Audience
Hypotheses on traits of travellers that may lead to higher
travel expenditure (in general, not just to SG)
Likes to
travel &
to be
involved
in travel
planning
Likes to
customise
travel
itinerary
Openness
to travel
further
Earns
enough
12
LEISURE – CONSUMER INSIGHT
Discerning Chinese travellers look for quality and
depth of travel experiences
• Prefers FIT/ F&E
• Wants to be heavily involved in travel planning
Desired Consumer
Experience
• Beyond iconic sights and shopping, they are also
seeking experiences that allows interaction or learning
of local cultures
• Demanding for better customer services and
customised experiences in Mandarin, especially for
visitors from tier 2 cities
Sources:
STB 2012 Segmentation Study,
STB-CNTA 2013 Tier 2 City Study
Getting to Know the Chinese Consumer
The best experiences for Chinese visitors are those that:
• Allow them to bond through shared experience/
interest
• Are must-dos (according to WOM)
• Allow them to pamper their loved ones
• Allow them to take a break
• Allow them to be thrilled
• Allow them to have close encounters with nature
Desired Consumer
Experience
• Allow them to discover new tastes
• Are different from those at home
Top unprompted experiences
Most mentioned
Source: STB 2013 Consumer Experience Dipstick
Overview of 2014 market activities
and 2015 key projects
2014 market activities
16
China Campaign Idea: 从心发现 ‘New Discoveries’
OBJECTIVE
Increase Yield by Encouraging our Target Audience (repeat visitors
and lapsed visitors) to visit Singapore.
PROBLEM
Chinese travellers are spoilt for choice. While Singapore is a familiar
destination, its relevance has decreased, especially for past visitors
who have ticked Singapore off the “Been there, done that” list. This
implies that we are not communicating convincingly as a
destination with new experiences that warrants a visit.
SOLUTION
Challenge existing Chinese perception of Singapore by highlighting
the idea that Singapore is more than you know, a destination that
constantly renews its offerings and a place that warrants in-depth
exploration.
17
IMC Evolution
IMC 1
(Dec 11 – Jan 13)
•
•
•
‘New Discoveries’ using
Stephanie Sun as an
ambassador and other KOLs
Showcase Singapore’s
transformed ‘new/ 新’ tourism
landscape
Overcome the dated perception
of Singapore’s offerings.
IMC 3
(Jul – Sep 14)
IMC 2
(Mar 13 – Jan 14)
•
•
Introducing the concept
of “Heart/心”
Emotive storytelling by
weaving in the themes of
romance, kinship and
friendship (爱情、亲情
、友情)
•
•
•
Re-discover Singapore by
highlighting in-depth
local experiences
Branded content and
emotive storytelling
Amplifying distribution via
Youku partnership and
other city level partners
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IMC3 “爱 ∙ 从心发现 New Discoveries” (Jul 2014)
Showcased in-depth experiences through branded content and
emotive storytelling
Estimated media value
of RMB 27mil
(S$5.4 mil)
20-30% increase in
partner bookings
10.4 million views
within 2 months
45,000 new fans
acquired on STB’s
Weibo and Wechat
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These slides are property of STB and shall not be reproduced and/or redistributed without permission from STB
IMC3 – Leveraged partnerships to amplify efforts
Key Cities: Beijing, Shanghai, Guangzhou, Chengdu, Shenzhen, Hangzhou
City level media/trade partnerships
Exclusive IMC travel agent partners
Regional media co-operation and trade
partnerships will ensure the campaign remains
effective in reaching out to our target audience
across different cities.
20
Retail campaign (Nov 2014 - Mar 2015)
Collaboration with stakeholders such as DFS, CAG and ORBA
Objectives
• Generate awareness of retail scene
• Increase spend
Launch of Retail Guide, supported by 71 retailers
• Showcase thematic retail offerings
• Discounts/ promotions with select leading brands
Media Partnership  Total distribution of 5million
• 悦己 and iLady
• Organise media/ blogger fams to further amplify the content
22
Collaboration with Ma Feng Wo
As of end Jan 2015, there were more than 1,000,000
views on Ma Feng Wo and widely shared and
reposted on WeChat by We-media like 新加坡眼
Source: iResearch, PC netizens include both desktop and laptop users
23
Collaboration with Ma Feng Wo
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Guangzhou Food KOL - Feigor
Objective:
To showcase the “hidden gastronomic gems” In
Singapore
Approach:
KOL co-curated the in-depth food experiences with a
Singaporean Chef and they presented a new
perspective of existing globally acclaimed SG food
stories
Outcomes:
- Media value generated - SGD322,179
(RMB1,502,000)
- Leveraged created content for post-visit publicity
via STB social media channels
- KOL feedback used to catalyse improvement for indepth mono-SIN products/experiences
25
Promotional activities in Tier 2 cities
Tier 2 cities engagement
In-Market Roadshows/
Training Seminars
Jointly engage local trade
with CAG and stakeholders
Shenyang
Trade/ Media Fams
Creating awareness, deepen
product understanding
Dalian
Joint Promotion &
Advertising
Partnering local trade to
generate publicity
Dongguan
Tianjin
Shandong
Pearl River Delta
Shenyang
26
Plans for 2015
27
IMC launch - Apr 2015
•
•
•
Micro movie directed by renowned Singaporean film director, Royston Tan
To reveal the many hidden gems of Singapore – its sights, sounds, people and culture –
delivering an authentic, intimate and way to engage the Chinese audience through a
deeper connection with what Singapore has to offer.
Media Partner: Youku (more than RMB 6mil in media exposure)
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IMC - SG Invites 中国版
Leverage the power of social circles through advocacy campaign
Timeline
Activities
Jul - Sep 2015
KOLs to invite Chinese KOL friends to Singapore
Nov 2015 – Jan 2016 Profile Chinese KOLs experiencing the secret gems of
Singapore
Apr – Jun 2016
User Generated Content
29
Expanding market focus to Tier 2 Markets
STB-CAG Partnership
North
- Tianjin
- Shenyang
South
- Xiamen/ Fuzhou
- Pearl River Delta
- Haikou
East
- Nanjing
- Qingdao
- Jinan
- Ningbo
West
- Chongqing
- Wuhan
- Xi’an
- Changsha
- Kunming
- Lanzhou
30
Strategic Partners: Leveraging CAG to extend pan-China reach
Drive to conversion by integrating emotive
Above-the-Line efforts with clear Call-to-Action
Convey the right story
A holistic Singapore+Changi experience
Priorities:
To the right people
Focus on those with high propensity &
ability to travel
1
Support Tier 2 strategy;
extend Tier 1 efforts to augment IMC
With aligned trade partners
2
Drive conversion with trade
3
Continue long-form story-tell &
KOL cultivation
Travel agent packages, airline fares etc
Focus on mono-SG
With flexibility for beyond-SG where
mutually agreed
31
Growing the
FIT segment
32
HOW?
• Investing in Digital and in-destination services
• Having compelling and engaging Content at different
touchpoints
The Shift in China’s Digital Landscape
China has the largest base of
Internet users in the world
Users are spending more time on
the Internet, and using mobile
devices to access the Internet
China
Internet
Penetration
632M
Majority of the Users are Post-1980s
Source: iResearch, PC netizens include both desktop and laptop users
34
Why do we need to go DIGITAL?
***Chinese consumers are reliant on Digital platforms to seek
Travel Related Content
Chinese tourists' media behavior and touch points in seeking information (2012&2013)
Key
finding:
Chinese
tourists are
becoming
more reliant
on the
internet to
seek travel
information.
Source: Annual Report of China Outbound Tourism
Development 2013 by China Tourism Academy
1. They Search: Consumers Search for Travel
related content
Baidu Top Travel Search
Categories 2013
1. Travel Destinations
2. Local Destinations
3. Maps
4. Travel Guides
5. Tickets for Attractions
6. Word of Mouth / Reviews
7. Shopping & Souvenirs
8. Landmarks / Scenery
9. Pricing
10. Food / Restaurants
11. Hotel / Accommodations
12. Travel Agencies
2. They Cross Reference: Consumers cross
reference various content sources they find
3. They Refer to OTAs, Travel Review Sites and Travel
Content Portals for Travel-related Content
•
Brick and mortar T.A
moving online, they
recognize the
importance of tapping
into existing customer
behavior and locating
themselves in such
natural habitats
•
OTAs become
destination sites
reaching consumers via
multiple Channels
(SNS/PC/MOBILE)
Photo gallery/map
Essential
information
Downloadable PDF
guides
User generated journals
4. They Consume content on Travel related APP
5. They Make Mobile Payments
6. They Purchase tickets prior to traveling
Tickets Booking：grew
56% in 2014 vs 2013
Understanding the China Parallel Universe
The Big Boys
Three Giants Dominating the Digital Scene
B AI DU
Baidu provides Chinese-language Internet search services to enable users to find relevant
information online, including web pages, news, images, documents and multimedia files
A LI BABA Group
is a privately owned Hangzhou-based group of Internet-based e-commerce businesses
including business-to-business online web portals, online retail and payment services, a
shopping search engine and data-centric cloud computing services.
T EN CENT
is a Chinese investment holding company whose subsidiaries provide mass media,
entertainment, Internet and mobile phone value-added services, and operate online
advertising services in China. Tencent's many services include social networks, web
portals, e-commerce, and multiplayer online games.
Understanding the Parallel Universe
The Specialists
1. User Generated Content Site – MaFengWo
2. Booking Site and Content Portal - CTRIP
3. Booking and Content Site - Tuniu
4. Review , Content, Discount Portal
44
Baidu’s tourist reach
35% on-line travelers search on mobile.
Hotel
61%+39%
65%
35%
>> >>
Airline
79%+21%
sights
61%+39%
Attractions and destination info are top 2 demands of
outbound tourism
Attractions
景点
• Metropolitan museum
• Disney tickets
Travel Guide
攻略
26%
General info
目的地
•
•
Travel to US
Holiday in Bangkok
•
•
38%
17%
Maldives trips
Japan travel notes
Visa
Hotel
Transportation
More and more outbound tourists pay attention to
quality of travel
35%
30%
25%
20%
15%
10%
5%
0%
Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13
Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14
Demand for star-rated hotels grows
29%.
Jul-14
Aug-14 Sep-14
Tourist destinations：Asia is the most popular
Europe
North
America
East
Asia
7.3%
Others
in Asia
Africa
South and
central America
1.5 %
Data source: Baidu PV tool
13.9%
10.7%
8.9%
Hong Kong
28.5%
Macao
Taiwan
1.6%
Southeast
Asia
22.1%
Australia
New Zealand
5.5%
Top 6 destinations
1. Thailand 2. South Korea 3. Taiwan
top6
Destinations
4. US
Data source: Baidu PV tool
5. Japan
6. Maldives
Top 6 cities
1.Hong Kong 2.Macao
3. Singapore
top6
Cities
4.Dubai
Data source: Baidu PV tool
5.Phuket Island 6.Paris
According to Baidu, the Chinese traveller to SG is:
 Young man with high education, fond of luxury
 Choose Hilton, Sheraton, Westin as accommodation
Characteristics
 Choose overseas OTAs for booking tickets/hotel
 If travel to Singapore, they will choose metro as transportation
 His favorite attractions in Singapore are Sentosa, Universal Studios
and Orchard Road.
Digital Partners: Working with Baidu
1. To Drive the right
audience to STB’s curated
content platforms to
discover the content
we’ve curated for them
on the destination
Online
Video
Search
Engine
2. To Deliver Curated
Content via digital means
Mobile
Function
An Official Service Account on
Mobile Platform for Chinese
consumers when in Singapore
Digital
Platform
Search
Engine
Optimistaion
Paid
Search
Location
Behaviou
Vertical
ral ReSite
targeting
Social
Based
media
Content
Review
Site
@
Direct Service
& Engagement
Map Navigation
STB Curated
Experience &
Content
53
@Baidu Connect
54
@Baidu Connect
Concerns when traveling… …
Which attraction has less people?
Preview attractions prior to trip
Any discount for
@Baidu Connect
Demand
Identification
Search
Comments
Travel
Guide
Pre-pay
Heat
map
Tickets
Navigation
@Baidu Connect supports online booking.
@Baidu Connect supports online payment.
This holistically bridges online with offline.
@Baidu Connect and i耳目
Real-time sightseeing through technology
i耳目
@Baidu Connect and travel guide
Travel guide helps travelers plan clearer itineraries and routes.
Pre – Arrival
Arrival
Serving the
right curated
content based
on Location
Pre – Arrival
Arrival
Food and
Shopping
“ASK SIRI”
DEALS
Recommended
Itinerary
Navigate SG
Attractions
Guide
“ASK SIRI”
Attractions
Recommended
Experiences
What’s
Popular
around you
Speak OUR
Language
62
Alitrip, a subsidiary of Alibaba Group

A Business Eco-system
Traveling Platform
Alitrip ECO system
VOUCHER
GROUP
BUY
POSTPOST
PAY
SCANNI
NG-PAY
HOTEL
Perfect
experience for
booking and
stay
CUSTOMER
MEMBER
SHIP
65
A New Mobile Ecosystem to Connect Life
City Service
Commerce
Finance
Social
NEWS
Information
Music
Medical
Dining
Entertainment
Video
Taxi
Travel
eCommerce
Mobile
…
What is Wechat?
A Communication Tool
A Social Networking Platform
A Game Center
A Social Media
A E-commerce Platform
A Digital Wallet
WeChat, Growing and Loved by Millions
500M users
In 3 years
Jan.21, 2011
Weixin 1.0
released
Mar.29, 2012
100 million
registered users
in China
100M users
Jan.15, 2013
300 million
registered users
in China
Jun.14, 2013
Ban Ki-moon
launched
UN WeChat account
Sept.30, 2014
468 million
Monthly active users
worldwide
3
20
#1
Years
Language
Social APP
In 3 years
Over 110 OS versions
+
6 Smartphone device
Cover over 200 country’s
mobile users
Among over 70 countries
Subscription Accounts: Connect with Information
Guangdong Museum
Text interaction
Voice guide
Great Britain Travel Bureau
Travel related information
Service Accounts: Connect with Services
WeChat Will Be A Digital Wallet
WeChat Marketing Solutions, Creating a New Mobile
Marketing Ecosystem
Digital Partners: Working with Tencent
2. To Deliver Curated
Content via digital means
1. To Amplify Created Content
Online
Video
Search
Engine
Mobile
Function
Embed LBS Services,
Itinerary, and providing up to
date travel info and deals.
Digital
Platform
Vertical
Site
Social
media
Review
Site
3. To Distribute
Content curated from
various content
platforms to bring
richer stories and
recommendations
4. To Facilitate Discovery via
digital means
73
Other Digital and Content Partners
Booking Site and Content Portal
 Focuses its services primarily on business and leisure
travellers in China who do not travel in groups
Package and Design special Singapore products for listing on
their platforms
Integrate Singapore Destination Content into their platform,
leverage their marketing channels
User Generated Content Sites
 Create special pages for Singapore with UGC and
official content
 Integrate UGC into STB Weibo and Wechat
74
Content Strategy: Get Compelling Content
Consistently
The Ideal Content Model
Create
STB-created content that is
unique to our destination, for
which we have a right-to-win
Co-create
Content created in partnership with best-in-class
providers who are credible, authentic and are seen as an authority
in the travel / lifestyle space (whom our Target Audience identifies with)
Curate
Aggregate existing content already produced by content
providers and user generated stories e.g.
Reviews, ratings, traveller stories, photo sharing, blogs
Objective is to achieve optimal mix of all 3 to optimise marketing resources
Key Sources of Content
Syndicated
content
KOLs
• Identify KOLs for
long-term
engagement on
Singapore travel
• Leverage KOLs’
influence and
distribute cocreated content
via digital
channels
UGC
•
•
•
Purchase
articles from SG
media houses
such as SPH for
repackaging and
distribution
Create new
specialised, indepth content
with SPH
writers
Work with
specialised UGC
portals (e.g. 新
加坡眼，磨房
网） to cocreate themed
content to
increase share
of voice in the
market
Co-create Content: KOLs Engagement
KOLs are another avenue for STB-GC to engage our target audience, with SINGAPORE
STORYTELLING from DIFFERENT PERSONAL PERSPECTIVES.
• STB-GC has traditionally worked with different KOLs – spanning celebrity, media,
bloggers, TV hosts – to experience and promote Singapore to their followers.
• In today’s context where there is a growing number of KOLs, and where their
popularity and influence have overtaken traditional media, identifying the right KOLs
for the right objective is critical.
飞哥Feigor
TVB饮食节目《苏GOOD》客席
主持人；畅销食谱
《阿飞正菜传》作者
文怡
美食畅销书作家，美食节目主持人，文怡美食生
活馆，厨蜜网创始人
77
Ideal Content + Digital Approach
Increase
Awareness
Trigger
Consideration
CONTENT
Syndicated content
KOLs
UGC
Enhance the
visitor’s
experience
In destination
Digital Tools
Assist with
Building
Advocacy
KOLs
PLATFORMS
Panel session
1) Mr Derek Tay – Lex Travel Pte Ltd
2) Mr Christopher Kang – Shangri-La Hotel, Singapore
79
For enquiries, please contact:
Mr Gavin Liow
gavin_liow@stb.gov.sg
80