Magic Cities GermanyChina Traveller

October 2009

 

Q: How would you define the Chinese traveler?

A: It is difficult to define as it is changing in China all the time. Ten years ago most of the Chinese outbound travelers were first time travelers, they would usually travel for two weeks and see 10 counties in one stint. More recently it has changed in that many tourists travel to one destination only. These FIT travelers spend more money, they understand the world of travel and as such do not have unrealistic expectations or demands. Today’s Chinese traveling consumer conducts research before their trip, mostly on the Internet and prefer Chinese language portals. They also trust the comments made in the local online chat rooms.

 

Q: Which trends do you foresee increasing in popularity?

A: Smaller groups traveling for a longer duration is becoming more popular, especially amongst those from Beijing and Shanghai. It also seems Guangzhou travelers understand more about outbound travel than their fellow countrymen due to their proximity to, and influence under, Hong Kong travel agencies. A small minority even prefer to travel with Hong Kong groups.

 

Q: Most recent figures for outbound Chinese travel to Germany?

A: From January to June 2009 there has been an average 11% drop in travel for all the cities we represent. Three cities however posted positive gains including Berlin, Dresden & Hamburg. Berlin in particular is growing in popularity and is becoming Europe’s third most attractive city after Paris and London. Hainan Airline flights to Berlin are supporting this growing trend.

 

Q: Average length of stay for Chinese travelers to Germany?

A: With ADS group travel the average length of stay in Germany is a mere 2-3 days stay. Currently we are negotiating with tour operators to develop mono-destination packages for Germany. Furthermore, Germany is very much encouraging FIT travel. FIT travellers tend to travel for an average of 5-7 days.

 

Q: Breakdown in terms of ADS versus FIT travelers?

A:  It is hard to determine exactly who falls into what categories. To date the majority of travel to Germany is dominated by business travel. For example, an average of 700,000 Chinese travel to Germany annually, of which 60% or more are business travellers. I can estimate that in 2008 we received less than 20,000 ADS tourists, but at the same time that is not a fair reflection as a Schengen visa is easier to apply for in other European consulates.

 

Q: Financial crisis and swine flu impact on arrivals from China?

A: Swine flu did have a huge impact on arrivals while the financial crisis had an impact on our business travellers who make up the bulk. Lufthansa for example is struggling a little with their business class offerings as are other airlines. Since July of this year however the numbers are starting to pick up and we expect their will be a recovery in the second half of the year.

 

Q: How is brand Germany perceived in the China market?

A: The overall image of Germany in China as a tourist destination is not so good as it is perceived to be rather industrial with a lack of romance. Next year there will be a big push for FIT travel promotions. In the past tour operator relations were more important but now things are different as almost everyone has ADS. We are thus now starting to look at the end consumer as we believe they must first be knowledgeable of the product before they decide to travel to our destination.

 

Q: Rough geographical breakdown of Chinese arrivals to Germany?

A: Our tourists predominantly come from Beijing, Shanghai, Guangzhou and Hong Kong – but mostly from Beijing. We also conduct promotions however in Chengdu, Chongqing, Shenyang, Hangzhou and Nanjing etc.

 

Q: Which countries compete with brand Germany?

A: French and Italian cities more likely than most to be our competitors whilst Swiss, Austrian and Czech Republic cities compliment our German cities, we are in a great position to cooperate with them.

 

Q: Major obstacles to positively brand Germany to a Chinese audience?

A: Education, education, education! Chinese consumers are generally not aware of how beautiful Germany is.

 

Q: Methods/tactics to generate better awareness in China?

A: We are engaging in more interactive type events, more Internet based platforms. For example we are cooperating with the Travel Channel of www.sina.com to highlight our ‘Magic Winter’. It includes a questionnaire with a lucky draw to win a trip to Germany. We are also working with travel agencies to produce more interesting and realistic products. Lastly, we are providing travel agents with the opportunity to conduct online e-learning courses, something that was effectively carried out by Australia and Switzerland.

 

Q: How does Germany plan to leverage the 2010 World Expo Shanghai?

A: We will be supporting the efforts of Hamburg House (Euro 6 million investment) which is a sister city of Shanghai. We will also be supporting Dusseldorf with their independent pavilion. No plans to assist the German national pavilion thus far.

 

Q: Most creative or audacious tactic/ strategy/ campaign ever employed in China?

A: As you know Berlin is renown for its great nightlife. Also in the past we would engage in the usual (‘boring’) workshops and seminars. We accordingly broke the mould recently and hosted a party in Beijing and invited 140 journalists, 100 persons from German companies and travel agency representatives who were all entertained by a famous German DJ. We have received great media coverage so far and it was overall a great success. Next year we will include a consumer part which we are very excited about.  

 

China Representative, Zhaohui Li. Ms. Li serves as China Representative to the Magic Cities of Germany which includes Berlin, Cologne, Dresden, Düsseldorf, Frankfurt, Hamburg, Hannover, Leipzig, Munich & Stuttgart.

Alaska Travel Industry Association LogoChina Traveller

May 2009

 

The US’ final frontier, Alaska, is attempting to make in-roads into the Chinese market encouraged by strong Japanese tourist arrivals. On the surface of it, the task seems herculean considering China’s northern neighbour, Russia, offers similar attractions, but tourist friendly regulations and a depth of organisational capacity will give Alaska the upper hand.  

 

Exhibiting at the China Outbound Travel & Tourism Market Expo in Beijing in April, Alaska Travel Industry Association travel trade & international marketing manager, Jesse Carlstrom, took time to answer a few China Traveller questions.

 

Q: Who is responsible for the marketing of America as a travel destination?

A: The US Travel Association (TIA) is the national driven platform for promoting America and they are responsible for the ‘Discover America’ program. All the individual states however have to promote themselves abroad, and fund such promotions themselves. There is a bit of overlap as the majority of visitors to Alaska visit our destination as part of a group of other destinations.

 

Q: What are your largest international tourism markets?

A: The United Kingdom is the greatest source of our inbound tourism, and they almost entirely travel to Alaska as part of a cruise ship package. Our tourism bureau works hand in hand with the cruise liners. The cruise liners have a big influence on the branding of Alaska as they have enviable budgets. At the Alaska Travel Industry Association it is our duty to try and get more visitors to experience more on shore. Currently cruise liners are responsible for about 70% of tourism to Alaska in the summer time, and around 50% year round.

 

Our third largest market is Germany while our largest Asian markets remain Japan (15,000 per/year) and Korea (2-3,000 per/year). Our Japanese visitors are the ideal tourists as they visit equally as much in the summer as in the winter.

 

Q: Alaska’s tourism promotion in China?

A: Due to the US receiving Approved Destination Status (ADS) last year, we are slowly building a presence in China. In May 2008 we received our first FAM tour of tour operators. The process has just begun however and as such some glitches do still exist with regards to visas etc.

 

For the time being we are maintaining a minimal presence in China as it would be difficult to justify a significant investment considering the currently low arrival numbers from China. We are taking the market seriously however and have participated in three travel exhibitions in China over the past two years. Furthermore our travel interests are represented by the Alaska Governor’s Office of International Trade in Beijing. To act prudently however, we have to prioritise successful markets such as Germany and Japan.

 

Q: What attractions do you think will make an impact on Chinese travellers?

A: The same attractions that captivate other travellers from large, crowded cities, the fact that everything is 100% natural, its clean, its fresh, its quiet, it has vast tracts of open land and space, it is a surreal experience. One attraction that has been gaining ground with other Asian markets is aurora viewing. Alaska is one of the best places in the world to see the Aurora Borealis or northern lights.