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Marketing to Travellers in Asia




 Key Takeaways from WIT Australia 2011
    June 21, 2011, Shangri-La Hotel,
                Sydney
Speakers
•   Adrian Currie - Chairman, Agoda
•   Alvin Ch'ng - Commercial Director, Asia Pacific, TripAdvisor, Singapore
•   Brad Gurrie - General Manager, Travelzoo, Australia & Singapore
•   Christine Whyte - Director of Revenue Management, The Observatory Hotel,
    Sydney
•   Danny Kondic - Vice-President, Channel Management, Abacus International
    Pte Ltd
•   Darren Wright - Head of Commercial, AirAsia X
•   Elizabeth Rich - Managing Director, Agenda Pty Ltd
•   Erik Munoz - Regional Director of Sales, Asia Pacific Region, IDeaS Revenue
    Solutions
•   Fritz Demopolous – CEO, Qunar, China
•   Graham Hills - General Manager, Indonesia, Wego.com
•   Ian Cumming – Director, Insight4, Australia
Speakers
•   Kei Shibata – CEO, Travel.jp, Japan
•   Kim Portrate - General Manager Consumer Marketing, Tourism Australia
•   Lynne Oldfield - Senior Director, GTA Australasia & India
•   Morris Sim - CEO & Co-Founder, Circos Brand Karma
•   Olaf Belgraver - Director of Sales E-commerce Australia, Accor
•   Peter Hook - General Manager Communications, Accor Asia Pacific
•   Robbie Cooke - Group CEO, Wotif Group, Australia
•   Roland Jegge - Vice President, Asia Pacific, Worldhotels, Singapore
•   Sandra Chipchase – CEO, Melbourne Convention & Visitors Bureau
•   Siva Ganeshanandan - Regional Manager, Autonomy Promote
•   Timothy Hughes – Blogger, BOOT, Business of Online Travel
Asia-Pacific Online Travel market counts for 21% of
                                 total market share
Asian countries are densely populated therefore
       more agents (difference from USA where
 population dispersed and there’s a greater use
                                       of OTAs)

      The definition of intermediary is changing

  The role is getting split up among generations
                                           X/Y/Z
Consumers go to Google // Wego or Kayak to
                            compare rates
                +
          They read reviews on Tripadvisor
Look at niches - age segment, gender by
  market



Look for target niches in age and gender,
  like women 35 to 55
"Sex and the City" travel market up and coming

Asians are addicted to gadgets. More about
  ability to carry computer with you and tap in
  to content

Asian market + gadgets = travel planning
  experience
Focus on Experience!

Build an inspirational brand that young people will
  want to book with*




* Air NZ have done well with viral videos. They do a fantastic job telling stories.
Also, Shangri-La doing well with engagement in social media
Japan
Last minute bookings increasing in Japan  Japanese
  tourists increasingly booking today and travelling
  tomorrow

Young Japanese LOVE games. The younger the gamer.
  Lots of money around mobile gamers.

Increasing smart phone ownership + usage  40%
  accessing Travel.jp via mobile
Mixi, Twitter, Facebook are the Top social media networks
 in Japan

Mixi  4 our of 5 users are in their 20's, mobile accessed
 6 times more than PC

Japan has highest Twitter penetration of all countries

Facebook users in Japan is small but growing, most have
  experience overseas

Japanese love reward points  join some of the major
  programs
Travel.jp seeing growth in search for tickets and
  packages

We see users over 50-years-old making up 28% of
 meta-search users

Japanese to take longer vacations this summer 
  offer longer packages to appease market

Hottest summer is around the corner. People are
 talking about taking longer vacations. So offer
 longer packages!
China
For the 1st time ever, the outbound market in china is
  significantly higher than the inbound market

By 2020, China will be the biggest market of
  outbound tourism

2010  2 billion trips inside China. Up 10% from 2009

60 million people will travel abroad by 2014
Online is the best way to convert people to customers. Almost
  70% of consumers use the internet for research




Online bookings in China only 10% vs. 50% in other markets

Online companies in China are all private. Makes it so much
  easier to work with them - as compared to working with
  the government
• Video
• SNS
• GroupBuying
• Portals
• Search
• Ecommerce
 Chinese market is extremely competitive across
  these platforms

Youku, Tudou, Xunei, PPlive  Big players in video
  Market in China
Chinese consumers are shifting their spending from
  products to services

Chinese consumers drive global sales of luxury
  products. They are willing to pay  Unprecedented
  brand building opportunities

It’s time to promote brand, locations, destination,
   service etc. In China
Because of competitiveness and continual evolution,
  brands aren't solidified. Good entry point for travel
  companies

Cultural understanding is very important

Park yourself in China to really understand what's
  happening. Change your company's dynamism to
  adapt to China. Build up your opportunities there

China is not just one market!
Think outside major urban hubs
   Go to two- or three-tier
  cities, many of which are
  underserved (most growth
  coming from these)

Some time ago, Nike set up a
  skateboarding competition in
  Chongqing and 500,000
  teenagers turned up! Even
  though there's practically
  nothing else to do in China

No right way to do things in
  China. You need to find your
  own way!
Experience China on your own and figure out the best
  strategy for your company

One thing you need to do is read www.chinadaily.com.cn

If you're a global company, you should know how to
   navigate London, Tokyo, Hong Kong, Shanghai, Beijing
You wont become an expert on China just by living
  there for 1 month. You need to constantly learn
  keep up to date

Two golden weeks in China: public holidays and more
  summer travel

Young people are going abroad for reunion dinners
  instead of staying in China
India
India is one of the more interesting markets. Internet
  usage is on the rise, enormous population. Only 40
  million are internet users over the age of 15

India's most popular travel sites: Indian Railways,
  MakeMyTrip, Yatra, ClearTrip and Expedia

Getting money out of India is not that easy. Its a big
  population in India, but how many have credit cards
  and are willing to use them on sites? A lot of travel is
  paid in cash

When it comes to travel, they research online, but pay to
 traditional agents
Indonesia
Indonesian population is quite large, 245 million. 50%
  are under 29

150% growth in FB users in Indonesia from 2010 to
  2011

Foursquare use  Indonesia is the largest audience in
  Asia

With location based services, you can reward them
 for using your services
Indonesians are new to travel and are looking for
  information

Yahoo no. 1 website (because of local language
  content)

Researching travel online grew 41% over last year.
  Travel info online growing at 71%

Growing outbound market in Indonesia. Wego saw
  45% increase in international searches.
Web
Focus groups, surveys, A/B
  testing - all things you need
  to do before moving in to
  the Asian market

Delta airlines to a lot of testing
  for Asian segment - found
  removing credit card logos
  increased conversion

Asian market doesn't like to be
  rushed into things

People want to have control.
  When you remove the "Go
  back" button, people book
  more often
Small changes make a big difference. E.g. Air Asia
  made very small changes to the homepage which
                      increased conversion by 1%




Test everything everywhere. All segments, different
  markets. These segments are changing. What was
      happening in China 18 months ago will not be
                                     relevant now
It is very important to have an
    online strategy that you
    doesn't change too often

Embrace Google Places!

Integrate with TripAdvisor to
   build transparency Keeping
   more customers on the web
   site

Surprise markets: Indonesia. A lot
  more tech-savvy than originally
  thought

Concentrate on small markets
  because they're more tangible
Good booking engine is
          top priority

 Facebook is for brand
         building and
         relationship
       development

   If you're new, group
  buying sites can help
    build brand (bigger
  chains don't need it)
Singapore books a lot more online, followed by China
  and Indonesia

Triple digit growth in some markets - Korea,
  Indonesia, Viet Nam and Thailand

Mobile will be strong channel in Asia in the future,
 more so than in Europe and the Americas

Mobile phone bookings are growing and WorldHotels
 are investing in building an app
Challenges
Google is trying to innovate in the travel space but
 ultimately it's still a "dumb" index of the web.
 People want more complicated itineraries and want
 to get more interesting information. Google cannot
 deliver that

Biggest challenge as a startup is getting access to
  data. If you want to get it from a GDS, you have to
  pay. Instead  scrape and monitor
Engagement for travel brands is important

Personalisation  crucial to help maintain customers

Every travel brand has a community which it should tap
  on

Google doesn’t help with getting specific answers, that's
  why Travellr and other Q&A sites are successful

It's VERY difficult to build a content-based startup right
   now. Merge content with service
See you at WIT 2012
         
   @saraboargs

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Wit 2011 - Marketing to the Asian Travellers

  • 1. Marketing to Travellers in Asia Key Takeaways from WIT Australia 2011 June 21, 2011, Shangri-La Hotel, Sydney
  • 2. Speakers • Adrian Currie - Chairman, Agoda • Alvin Ch'ng - Commercial Director, Asia Pacific, TripAdvisor, Singapore • Brad Gurrie - General Manager, Travelzoo, Australia & Singapore • Christine Whyte - Director of Revenue Management, The Observatory Hotel, Sydney • Danny Kondic - Vice-President, Channel Management, Abacus International Pte Ltd • Darren Wright - Head of Commercial, AirAsia X • Elizabeth Rich - Managing Director, Agenda Pty Ltd • Erik Munoz - Regional Director of Sales, Asia Pacific Region, IDeaS Revenue Solutions • Fritz Demopolous – CEO, Qunar, China • Graham Hills - General Manager, Indonesia, Wego.com • Ian Cumming – Director, Insight4, Australia
  • 3. Speakers • Kei Shibata – CEO, Travel.jp, Japan • Kim Portrate - General Manager Consumer Marketing, Tourism Australia • Lynne Oldfield - Senior Director, GTA Australasia & India • Morris Sim - CEO & Co-Founder, Circos Brand Karma • Olaf Belgraver - Director of Sales E-commerce Australia, Accor • Peter Hook - General Manager Communications, Accor Asia Pacific • Robbie Cooke - Group CEO, Wotif Group, Australia • Roland Jegge - Vice President, Asia Pacific, Worldhotels, Singapore • Sandra Chipchase – CEO, Melbourne Convention & Visitors Bureau • Siva Ganeshanandan - Regional Manager, Autonomy Promote • Timothy Hughes – Blogger, BOOT, Business of Online Travel
  • 4. Asia-Pacific Online Travel market counts for 21% of total market share
  • 5. Asian countries are densely populated therefore more agents (difference from USA where population dispersed and there’s a greater use of OTAs) The definition of intermediary is changing The role is getting split up among generations X/Y/Z
  • 6. Consumers go to Google // Wego or Kayak to compare rates + They read reviews on Tripadvisor
  • 7. Look at niches - age segment, gender by market Look for target niches in age and gender, like women 35 to 55
  • 8. "Sex and the City" travel market up and coming Asians are addicted to gadgets. More about ability to carry computer with you and tap in to content Asian market + gadgets = travel planning experience
  • 9. Focus on Experience! Build an inspirational brand that young people will want to book with* * Air NZ have done well with viral videos. They do a fantastic job telling stories. Also, Shangri-La doing well with engagement in social media
  • 10. Japan
  • 11. Last minute bookings increasing in Japan  Japanese tourists increasingly booking today and travelling tomorrow Young Japanese LOVE games. The younger the gamer. Lots of money around mobile gamers. Increasing smart phone ownership + usage  40% accessing Travel.jp via mobile
  • 12. Mixi, Twitter, Facebook are the Top social media networks in Japan Mixi  4 our of 5 users are in their 20's, mobile accessed 6 times more than PC Japan has highest Twitter penetration of all countries Facebook users in Japan is small but growing, most have experience overseas Japanese love reward points  join some of the major programs
  • 13. Travel.jp seeing growth in search for tickets and packages We see users over 50-years-old making up 28% of meta-search users Japanese to take longer vacations this summer  offer longer packages to appease market Hottest summer is around the corner. People are talking about taking longer vacations. So offer longer packages!
  • 14. China
  • 15. For the 1st time ever, the outbound market in china is significantly higher than the inbound market By 2020, China will be the biggest market of outbound tourism 2010  2 billion trips inside China. Up 10% from 2009 60 million people will travel abroad by 2014
  • 16. Online is the best way to convert people to customers. Almost 70% of consumers use the internet for research Online bookings in China only 10% vs. 50% in other markets Online companies in China are all private. Makes it so much easier to work with them - as compared to working with the government
  • 17. • Video • SNS • GroupBuying • Portals • Search • Ecommerce  Chinese market is extremely competitive across these platforms Youku, Tudou, Xunei, PPlive  Big players in video Market in China
  • 18. Chinese consumers are shifting their spending from products to services Chinese consumers drive global sales of luxury products. They are willing to pay  Unprecedented brand building opportunities It’s time to promote brand, locations, destination, service etc. In China
  • 19. Because of competitiveness and continual evolution, brands aren't solidified. Good entry point for travel companies Cultural understanding is very important Park yourself in China to really understand what's happening. Change your company's dynamism to adapt to China. Build up your opportunities there China is not just one market!
  • 20. Think outside major urban hubs  Go to two- or three-tier cities, many of which are underserved (most growth coming from these) Some time ago, Nike set up a skateboarding competition in Chongqing and 500,000 teenagers turned up! Even though there's practically nothing else to do in China No right way to do things in China. You need to find your own way!
  • 21. Experience China on your own and figure out the best strategy for your company One thing you need to do is read www.chinadaily.com.cn If you're a global company, you should know how to navigate London, Tokyo, Hong Kong, Shanghai, Beijing
  • 22. You wont become an expert on China just by living there for 1 month. You need to constantly learn keep up to date Two golden weeks in China: public holidays and more summer travel Young people are going abroad for reunion dinners instead of staying in China
  • 23. India
  • 24. India is one of the more interesting markets. Internet usage is on the rise, enormous population. Only 40 million are internet users over the age of 15 India's most popular travel sites: Indian Railways, MakeMyTrip, Yatra, ClearTrip and Expedia Getting money out of India is not that easy. Its a big population in India, but how many have credit cards and are willing to use them on sites? A lot of travel is paid in cash When it comes to travel, they research online, but pay to traditional agents
  • 26. Indonesian population is quite large, 245 million. 50% are under 29 150% growth in FB users in Indonesia from 2010 to 2011 Foursquare use  Indonesia is the largest audience in Asia With location based services, you can reward them for using your services
  • 27. Indonesians are new to travel and are looking for information Yahoo no. 1 website (because of local language content) Researching travel online grew 41% over last year. Travel info online growing at 71% Growing outbound market in Indonesia. Wego saw 45% increase in international searches.
  • 28. Web
  • 29. Focus groups, surveys, A/B testing - all things you need to do before moving in to the Asian market Delta airlines to a lot of testing for Asian segment - found removing credit card logos increased conversion Asian market doesn't like to be rushed into things People want to have control. When you remove the "Go back" button, people book more often
  • 30. Small changes make a big difference. E.g. Air Asia made very small changes to the homepage which increased conversion by 1% Test everything everywhere. All segments, different markets. These segments are changing. What was happening in China 18 months ago will not be relevant now
  • 31. It is very important to have an online strategy that you doesn't change too often Embrace Google Places! Integrate with TripAdvisor to build transparency Keeping more customers on the web site Surprise markets: Indonesia. A lot more tech-savvy than originally thought Concentrate on small markets because they're more tangible
  • 32. Good booking engine is top priority Facebook is for brand building and relationship development If you're new, group buying sites can help build brand (bigger chains don't need it)
  • 33. Singapore books a lot more online, followed by China and Indonesia Triple digit growth in some markets - Korea, Indonesia, Viet Nam and Thailand Mobile will be strong channel in Asia in the future, more so than in Europe and the Americas Mobile phone bookings are growing and WorldHotels are investing in building an app
  • 35. Google is trying to innovate in the travel space but ultimately it's still a "dumb" index of the web. People want more complicated itineraries and want to get more interesting information. Google cannot deliver that Biggest challenge as a startup is getting access to data. If you want to get it from a GDS, you have to pay. Instead  scrape and monitor
  • 36. Engagement for travel brands is important Personalisation  crucial to help maintain customers Every travel brand has a community which it should tap on Google doesn’t help with getting specific answers, that's why Travellr and other Q&A sites are successful It's VERY difficult to build a content-based startup right now. Merge content with service
  • 37. See you at WIT 2012  @saraboargs