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Know your Chinese Guests


133 million Chinese travelers took international trips last year – that’s more than the population of Japan – the world’s 10th most populous country. And if we consider the spending of Chinese travellers who spend nearly equivalent to what American, German and British tourists spend, it’s no wonder globally hotels are focussing on China specific marketing campaigns.
Chinese free independent traveller (FIT) has become the talk of every trade event and conference. With affluence and sophistication, more and more travellers are seeking experiences, and shedding tour operators. More than 70 percent of Chinese outbound travelers now plan and travel independently, a huge shift in their travel behaviour. According to a recent report, about 68% Chinese Independent travelers are millennials with high disposable income and education degree. And predictably, they prefer online.
Ctrip rules, and rules big
While traditional tour operators still get the biggest share of the pie, about 20% of all travel bookings are made online. That makes it about 26 million people who usually book online. After Ctrip’s partnership with Qunar, the local OTA giant – Ctrip now controls about 60% of China’s online travel market, well ahead its closest rival Alibaba Travel with 15% market share.
Mobile Booking
Internet in China is led by mobile, with about 731 million  people  using it to go online and that somewhat explains the emergence of mobile as a serious booking channel. According to a survey by 
Travelzoo, over 85% of their Chinese members rely on travel apps for the easiest way to book a holiday, and over 70% plan to book flights, cruises, package holidays and hotels via apps –  a stark contrast from their European counterparts who have shown resistance to adapt to mobile.
The Social Network
Chinese have their own social network, and they are in love with them. Chinese Internet users spend majority of their time on social networks – so if you are not visible in Weibo or Wechat, chances are that you are unlikely to capture their attention.
As China starts expanding its tourism industry, catch them early. The potential is enormous.
To reach out to Chinese Travelers, connect with us. We offer 2-way XML connectivity with all leading Chinese OTA and metasearch sites.
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Flash Sales – the future of hotel booking

Flash Sales offer great deals for a very limited time, they can often have much tougher terms and conditions to many other offers that can make it difficult for travelers to cash-in their voucher. Yet some hotels are seeing this as a great way to promote their hotel and show travelers what they can offer.

One hotel I spoke to offered 75% off their standard rate, and this is in London – what a potentially excellent deal. But as a traveler it is really worth price shopping and seeing what rates are on the market, across traditional booking channels, to make sure it is a great deal.

Yet tapping into travelers with a budget mindset is ideal as the speed of purchase encourages them to buy faster.

A few places you can find these interesting deals include Secret Escapes, GroupOn, Living Social, Voyageprive.com and Travel Zoo. I recently attended an event organized by HOSPA – an association for hoteliers to find out more.

As a hotelier – you do need to think of what brand represents your hotel. You need to agree with the supplier a sustainable pricing model on the discount and commission the website charges. Don’t get surprised if the results don’t come in as you expect, nothing worse than planning booking based on a pure marketing promotion.

The HOSPA panel agreed that on the whole, those who bought these Flash Sales were often consumers who can afford to spend several hundred in a daily deal, making a decision in a moment.


 
Advising hotels on how to make the most of Flash Sales, Nick Stafford, General Manager of Escapes Europe of Living Social remarked: “The worst thing you can do is discount heavily to your own customers. I booked a flight and 2 days later received a discount promotion of 60% from that airline. Discounting to loyal customers is dangerous and can reduce the value of your product as they just hang around waiting for the sale,” Nick felt short changed by the airline. “Our offers are for a specific time, feeding recipients needs then and there.”

However hotels maybe trying these new forms of social and digital marketing, yet are still very behind on the online basics, TravelZoo still needs to create web landing pages for hotels that (believe it or not) still do not have websites. Then these hotels complain when they don’t get the results they need. To me, hotels need to get a grip with the basics before trying this method of sales.

The only advice these channels seem to offer to hotels is to think in advance, do not call up last minute desperate to fill the hotel. This is not last minute bookings, these are future bookings aimed at helping the quiet periods, and revenue managers should know the weeks when the hotel is usually quiet.

There are no exact figures on how much these flash sales cost, it will be anywhere between 10% – 50% commission depending on the offer, the location of the property and the brand.

I am hoping that independent hotels are offered good deals, but I get the impression it maybe more financially challenging for small independent properties.

Some immediate tips for hotels:

  • Select the right channel that markets hotels like your property
  • Identify the lowest rate you publish and can make money from
  • Build from this lowest rate, taking into account maximum commission you are willing to pay before you make a loss
  • Look at your additional services – value-adds – and see how you can create a great package offer that costs you very little
  • Get a good idea of how the flash sales members behave to identify the best price

Ryan C Haynes is VP – Marketing Communications at eRevMax and is responsible for driving all PR and Marketing activities for RateTiger and eRevMax brands globally. Ryan is based out of London and can be reached at ryanh@ratetiger.com