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Thursday 31 May 2012 Pullman Hotel
Co-Hosts
Asia Markets – Best Distribution Channels Chair: Paul Yeo, General Manager Tourism Operations – Tourism New Zealand
Mark Frood
International Market Development Manager – Auckland International Airport
John Farrell
Area Director Sales and Marketing, NZ and South Pacific – Accor
Garrick Emms
Marketing Consultant – New Zealand Lodge Association
NZ HOTEL INDUSTRY CONFERENCE ASIA MARKETS – BEST DISTRIBUTION
TRENDS
A Portfolio Approach to Market Prioritisation
Australia
China
USA
UK
Germany
Japan
SEA
Canada
France
Scandinavia
India
Hong Kong
Taiwan
Korea
Eastern Europe
South America
Remainder of
Western Europe
Overall Visitor Numbers are rising Western long haul markets struggle, most of South East Asia continues to thrive, and Au
remains up
Top ten
markets Visitor numbers
Total
Trend
(YOY)
Australia 1,161 3.7%
UK 216 -3.0%
USA 184 -3.6%
China 168 29.8%
Japan 67 -19.0%
Germany 63 -2.8%
Korea 54 -14.4%
Canada 49 1.0%
Singapore 39 26.4%
Malaysia 38 61.1%
Total 2,616 3.9% Source: International Visitor Arrivals YE Apr 2012
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
20
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20
01
20
02
20
03
20
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20
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20
06
20
07
20
08
20
09
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Arr
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Arrivals - All Markets
Australia
NZ’s fastest growing markets remain in Asia Future projections indicate China and Singapore will lead with the highest growth
Expected FY13
normalised
growth
<0%
High +>10%
Length of Stay -
Holiday
5 days +>20 days
China
Singapore
France
Canada
Korea
Germany
USA
UK
Malaysia
Size of bubbles
represents
arrivals in NZ
But holiday stay days tell a slightly different story Top5: Au, UK, Ger, US, Fr (China #6)
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
YE Apr 2000
YE Apr 2001
YE Apr 2002
YE Apr 2003
YE Apr 2004
YE Apr 2005
YE Apr 2006
YE Apr 2007
YE Apr 2008
YE Apr 2009
YE Apr 2010
YE Apr 2011
YE Apr 2012
Tota
l Sta
y D
ays
Total Stay Days - HolidayTop 10 Markets
Australia
United Kingdom
Germany
United States of America
France
China
Canada
Netherlands
Japan
Korea
Visitor arrivals (all) by region Oceania leads for Arrivals with reasonable growth. Asia presents a big opportunity
1,303,276
487,216 450,420
266,492
50,728
4%
8%
1%
-1%
12%
-5%
0%
5%
10%
15%
20%
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Oceania Asia Europe Americas Africa and the
Middle East
Vis
ito
r A
rriv
als
Regional Visitor Arrivals and Growth All markets
Visitor Arrivals (all)
Year on Year Growth
Source: International Visitor Arrivals YE Apr 2012
Stay days (all) by region Oceania leads for stay days while Europe sits in second place ahead of Asia which has
been hit hard by Japan and Korea
Source: International Visitor Arrivals YE Apr 2012
16,099,016 15,595,300
10,229,112
5,800,468
1,483,936
-1.1%
4.1%
-1.1% -1.5% -4.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
Oceania Europe Asia Americas Africa and the
Middle East
Sta
y d
ay
s
Regional Visitor Stay Days and Growth All markets
Stay Days (all)
Year on Year Growth
A CLOSER LOOK AT CHINA
Chinese Arrivals
Chinese arrivals have seen solid growth over the last decade.
Source: Statistics New Zealand – International Travel and Migration
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Arr
iva
ls
Year End March
Arrivals From China
Total
Holiday
Annual Growth
2007 38.8%
2008 21.0%
2009 -3.2%
2010 -16.8%
2011 38.3%
2012 25.4%
69%
14%
8%
1% 2%3% 3%
Purpose of Visit - Arrivals
Holiday
VFR
Business
Conference
Education
Unspecified
Other
Average Length of Stay Holiday 6.1 days
VFR 60.9 days
Business 8.1 days
Education 125.9 days
Other 25.9 days
24%
47%
4%0%
16%
3%
6%
Purpose of Visit - Total Stay Days
Holiday
VFR
Business
Conference
Education
Unspecified
Other
Purpose of Visit
While Chinese holiday tourists dominate arrivals, their extremely short length of stay means that holiday
arrivals are under represented in Chinese stay days. On the other hand the long length of stay of
Chinese VFR (visiting friends and relatives) tourists means VFR tourists make up 47 percent of Chinese
stay days in New Zealand.
Source: International Travel and Migration – YE March 2012
Chinese International Tourists FY12 YTD (Feb)
Group
65%
Non -Group
35%
Chinese Independent Holiday Tourists = 13% (14,905 tourists)
For definitions see appendix one
Source: Immigration New Zealand, Chinese Visa Approvals, FY12 YTD
International Travel and Migration, FY12 YTD
ADS57%
PRC Delegations7%
Other Group1%
Independent Holiday13%
VFR13%
Other (Non-Group)9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
ADS PRC Delegations Other Group Independent Holiday VFR Other (Non-Group)*
About Chinese Independent
Holiday Tourists
Little information exists on independent Chinese holiday tourists
because they make up such a small part of our IVS statistics. However they:
• stay in New Zealand for longer than Chinese tour group holiday tourists (possibly around
16 days on average)
• visit more regions than tour group holiday tourists (5 on average)
• do more activities than tour group holiday tourists (13 on average)
They also do very similar activities to independent holiday tourists from other markets
including; visiting scenic and natural attractions, going to beaches, going to hot pools,
visiting glaciers and even do as many adventure activities as other markets.
Source: International Visitor Survey – March 2008 to March 2012
Key Tourism New
Zealand Active
Consider segments
in China
Adventurers
18-29
Pre family
FIT
Living at home
Wealthy family
Travel with friends
or alone
Escapers
30-49
Revival message
Have kids and jobs
Financial
commitments
Shorter LOS 5-7
High spend
50/50 FIT/Group
Lots of repeat
visitation
Journey
Seekers
50+
High VFR
Long LOS
Still working, more
settled
Self Drive
Good fit with NZ
Brand
Total Effort by
Target Group
20% 50% 30% 100
%
Thursday 31 May 2012 Pullman Hotel
Co-Hosts
Asia Markets – Best Distribution Channels Chair: Paul Yeo, General Manager Tourism Operations – Tourism New Zealand
Mark Frood
International Market Development Manager – Auckland International Airport
John Farrell
Area Director Sales and Marketing, NZ and South Pacific – Accor
Garrick Emms
Marketing Consultant – New Zealand Lodge Association
Thursday 31 May 2012 Pullman Hotel
Co-Hosts
Asia Markets – Best Distribution Channels Chair: Paul Yeo, General Manager Tourism Operations – Tourism New Zealand
Mark Frood
International Market Development Manager – Auckland International Airport
John Farrell
Area Director Sales and Marketing, NZ and South Pacific – Accor
Garrick Emms
Marketing Consultant – New Zealand Lodge Association
China’s luxury travel consumers – Key Trends
Preferred Sport %
1 Golf 13.4
2 Swimming 8.1
3 Yoga 2.4
4 Badminton 2.3
5 Mountaineering 2.1
Source: Hurun Research Institute 2011
Rise of the second generation-Education is key
Preferred Educational Destination
Rank Country %
1 USA 30.7
2 UK 21.4
3 Canada 14.3
4 Switzerland 7.5
5 New Zealand 7.3
Hurun Research Institute 2011
Hotel Booking
Preferred Hotel Reservation method %
Professional travel website 27
Travel service 27
Hotel membership service 18
Friend 16
Official website of the hotel 11
Decide on site 2
Source: Hurun White Paper on Chinese Luxury Market Special Survey 2011
Luxury Hotels
Rank Best Luxury Hotel Brand 1 Shangri-La
2 Hilton
3 Park Hyatt
4 The Ritz-Carlton
5 Peninsula
6 Grand Hyatt
7 Sheraton
8 Kempinski
9 Marriott
10 Hyatt Regency
11 InterContinental
12 Sofitel
Source: 2011 Hurun Best of the Best SurveyM
Branding Data Table
Positioning
Men’s Shoes Typical Brands
Coef.
Hotel Rooms, Paris
Typical Brands
Coef. Man’s Watch
Typical Brands
Coef.
Woman’s Blouse Typical Brands
Coef. Average
Coef.
Luxury Market
Berlutti - Four
Seasons - Cartier - Chanel - -
Upper Market
Church’s X2 Hilton X4 Hugo Boss X5 Kenzo X9 X5
Mid Market Clarks X9 Novotel X11 Seiko X19 Zara X23 X15.5
Lower Market
Bata X14.5 Ibis x22 Swatch X37.5 H&M x45 X29.75
Thursday 31 May 2012 Pullman Hotel
Co-Hosts
Asia Markets – Best Distribution Channels Chair: Paul Yeo, General Manager Tourism Operations – Tourism New Zealand
Mark Frood
International Market Development Manager – Auckland International Airport
John Farrell
Area Director Sales and Marketing, NZ and South Pacific – Accor
Garrick Emms
Marketing Consultant – New Zealand Lodge Association
Thursday 31 May 2012 Pullman Hotel
Co-Hosts
Asia Markets – Best Distribution Channels Chair: Paul Yeo, General Manager Tourism Operations – Tourism New Zealand
Mark Frood
International Market Development Manager – Auckland International Airport
John Farrell
Area Director Sales and Marketing, NZ and South Pacific – Accor
Garrick Emms
Marketing Consultant – New Zealand Lodge Association