How to Reach Chinese Family Travelers

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1 How to Reach Chinese Family Travelers 16 th April 2018 Michaela Mentasti COTTM

About Dragon Trail Interactive Dragon Trail Interactive is an award-winning travel technology and digital marketing agency

We are experts in content marketing, web and mobile development, creative digital campaigns and travel technology

Our clients all come from the travel, hospitality and retail sectors: National Tourism Offices (NTOs), Destination

2 About Dragon Trail Interactive Dragon Trail Interactive is an award-winning travel technology and digital marketing agency helping travel and tourism organizations reach and connect with China s affluent consumers online. We are experts in content marketing, web and mobile development, creative digital campaigns and travel technology solutions for consumer and trade marketing. Our clients all come from the travel, hospitality and retail sectors: National Tourism Offices (NTOs), Destination Management Organizations (DMOs) and CVBs Global and regional hotel chains, boutique and luxury hotels Airlines, cruise lines, rail and car rental companies Attractions, museums and retail outlets Tour operators, OTAs

3 Some of Dragon Trail s Clients

4 Who Are Chinese Family Travelers?

5 Family Travel Puts Kids on Centre Stage I am going to Hong Kong because it s close and convenient, and I can bring my child to Disneyland

Family Travel Is Not Just Parents Traveling with Kids I am traveling with my son s in-laws, my son, my daughterin-law and my grandchild and husband. In total we are 7 people.

6 Family Travel Is Not Just Parents Traveling with Kids I am traveling with my son s in-laws, my son, my daughterin-law and my grandchild and husband. In total we are 7 people. We are going on a cruise from Singapore, all organized by my son and daughter inlaw. My husband and I don t have the skills to organize such a trip!

It s much more relaxed as we can go at our pace and we can visit

7 Family Travel Often Involves Traveling Independently The three of us always travel independently. It s much more relaxed as we can go at our pace and we can visit the destination more thoroughly. We are going to Osaka for 10 days

Family Travel Different Needs for Different Segments Family travel is a broad term encompassing different groups of travelers, with very different demographics.

8 Family Travel Different Needs for Different Segments Family travel is a broad term encompassing different groups of travelers, with very different demographics. Depending on what generation is traveling together, travel brands need to adapt their products and their communication strategies. A child born in the 1980s traveling with parents born in the 1950s may care most about comfort and might be likely to pay for his/her parents trip. A family with a child born in the 1990s traveling with parents born in the 1960s might consider adventure tourism. Parents will often pay for the trip, and will often have a say in the choice of destination. Parents born in the 1970s or 80s traveling with young children will often involve the child in the decision making, but will also ensure that the trip has an educational value for the child The 6+1 travel arrangement sees two sets of grandparents, one set of parents and a child traveling together, often around Chinese New Year. Cruises and short haul destinations are most popular, and the younger parents will often pay for the trip.

9 How to Market To Family Travelers

China & the Internet Half of China is now online

smart phone users, 98% of all internet users (Dec 2017

10 China & the Internet Half of China is now online Mobile is key Social media are ubiquitous 772 mill internet users, 55.6% of China s population (Dec 2017 CNNIC) 753 million smart phone users, 98% of all internet users (Dec 2017 CNNIC) 90% internet users have at least one social media account (CNNIC)

Digital for Travel Inspiration & Research Phase Planning and booking travel in China is increasingly online, and

80% go online to search for travel information Inspiration phase: Travelers are inspired by posts they see on their

Research phase: 51% consult travel websites/blogs, and 21% use social media (social media as the primary source of

11 Digital for Travel Inspiration & Research Phase Planning and booking travel in China is increasingly online, and increasing mobile. 80% go online to search for travel information Inspiration phase: Travelers are inspired by posts they see on their friends WeChat Moments, posts by official WeChat accounts, as well as on Weibo. Research phase: 51% consult travel websites/blogs, and 21% use social media (social media as the primary source of travel information rises to 28% for millennials according to Fung Global Retail & Technology, 2017). Travelers may also use Baidu and other search engines, and check forums like Baidu Zhidao or Douban. Travel experience as shared on WeChat Moments

12 Digital for Travel Booking Phase 94% of Chinese travelers visit price-comparison websites when planning their travel (Chinese International Travel Monitor 2017). Over 60% of travelers under 44 years old in China prefer booking online, while those over 45 years old prefer booking offline. Online vs Offline Bookings According to Age Online Offline 38% 35% 34% 37% 52% 62% 65% 66% 63% 48% Total (PhocusWright, 2016)

Digital for Travel In-Destination Use Chinese travelers, especially FITs, will also look for in-destination information through WeChat mini-programs, restaurant and attraction review platform

13 Digital for Travel In-Destination Use Chinese travelers, especially FITs, will also look for in-destination information through WeChat mini-programs, restaurant and attraction review platform Dianping, and travel review sites. Chinese millennials love to share their travel experiences online, usually through WeChat Moments, as well as on travel sharing and review sites like Mafengwo and Qyer.com. Apps for Sharing Travel Updates WeChat QQ 39.0% 73.9% Weibo & Similar Apps Travel Apps Online Forum Apps Other 18.2% 14.5% 5.1% 7.4% Ctrip currently lists recommended restaurants and allows users to share reviews (Tencent CDC Survey)

Digital for Travel In-Destination Payment Offline: UnionPay s penetration in the USA is 80% among merchants, with withdrawals allowed at almost any ATM.

WeChat Pay users: 668 million Market Share: (TenPay) 40% Int l markets available in: 15 countries and regions in 12 currencies Filed for a license in Malaysia Partner with German Wirecard to cover EU

14 Digital for Travel In-Destination Payment Offline: UnionPay s penetration in the USA is 80% among merchants, with withdrawals allowed at almost any ATM. In Canada, UnionPay is accepted by 100,000 merchants and at 90% of ATMs. WeChat Pay users: 668 million Market Share: (TenPay) 40% Int l markets available in: 15 countries and regions in 12 currencies Filed for a license in Malaysia Partner with German Wirecard to cover EU Local wallets in South Africa and Hong Kong Silicon Valley startup Stripe will offer WeChat Pay in the US Adopted by: Galeries Lafayette, New Chitose airport in Hokkaido, taxis in Hong Kong VS Alipay users: 600 million Market Share: 54% Int l markets available in: Invested in local e-wallet and fintech startups including Paytm (India), Kakao Pay (South Korea), Mynt (the Philipines), Ascend Money (Thailand), and HelloPay (Singapore). Silicon Valley startup Stripe will offer Alipay in the US market Adopted by: Alipay became available at 10 international airports in 2016, taxis in NY, Las Vegas & high end shops

Latest WeChat Data WeChat is China s most popular social media app.

WeChat Monthly Users: 1 billion (Mar, 2017) WeChat Daily Users: 902 million (Nov, 2017) Average

of corporate WeChat accounts: 14 million (Nov, 2017) % of active corporate WeChat accounts: 38%

15 Latest WeChat Data WeChat is China s most popular social media app. It combines elements of Facebook, messaging, e-commerce, payments and more. WeChat Monthly Users: 1 billion (Mar, 2017) WeChat Daily Users: 902 million (Nov, 2017) Average n. of voice messages sent on WeChat each day: 6.1 billion (Nov, 2017) N. of corporate WeChat accounts: 14 million (Nov, 2017) % of active corporate WeChat accounts: 38% > 5.6 million (Nov, 2017) Average time spent on WeChat on a daily basis: 60 minutes per day % of users that spend at least 90 minutes a day: 50%

The mother s travel diary featured plenty of images as well as practical information

16 Marketing to Young Families WeChat Content - DMOs Dubai Department of Tourism & Commerce Marketing recently published a post about a mother traveling to Dubai with two toddlers. The mother s travel diary featured plenty of images as well as practical information including costs and the contact details of the venues and attractions visited

Marketing to Young Families WeChat Content - NTOs Visit Sweden positions itself as a family friendly destination, playing on the country s special care towards children and on its pristine

17 Marketing to Young Families WeChat Content - NTOs Visit Sweden positions itself as a family friendly destination, playing on the country s special care towards children and on its pristine environment. Many of the articles published on WeChat feature outdoor activities suitable for children, while other posts focus on the Swedish education system, a topic of great interest among Chinese parents. Tourism Vancouver recently engaged celebrity and Vancouver s winter ambassador, Tao Guo to bring his kids to Vancouver. The post documents some of the family s trip activities. Results: 6,500 page views Visit Sweden post on recommended destinations for children Tourism Vancouver created a 2-week series of posts with KOL Tao Guo

Marketing to Extended Families WeChat Content Cruises & Airlines Looking after older parents and treating them to new experiences is a fairly common and successful strategy used by brands to market

Viking Cruises this year ran a successful campaign encouraging young adults to write a short paragraph about why they would like to take their parents traveling to Europe.

18 Marketing to Extended Families WeChat Content Cruises & Airlines Looking after older parents and treating them to new experiences is a fairly common and successful strategy used by brands to market themselves in China, playing off the Confucian value of filial piety. Cathay Pacific s post about tickets from 1,091 RMB to take older parents traveling saw over 25,000 page views. Viking Cruises this year ran a successful campaign encouraging young adults to write a short paragraph about why they would like to take their parents traveling to Europe. The post saw 11,000 page views, with the campaign running multiple times within the first few months of the year Cathay Pacific s post encourages readers to take their parents traveling overseas Viking Cruises campaign about winning a trip to travel with one s parents

19 Travel Review Websites Family Travel Diaries Outside of WeChat, Chinese travel review websites Mafengwo and Qyer are popular resources for both user-generated and professionally created content. - Both sites have travel guides, apps, and also act as OTAs. 60% of users for both platforms are Chinese millennials, who mainly travel as FITs. - Users can review attractions, download professionally written Chinese-language guidebooks, and post their travel diaries and photos. Both sites have their own KOL travel bloggers. Traveling with kids to the Maldives - This travel diary published on Mafengwo has very detailed information about child-friendly activities, attractions and costs

Travel Review Websites 3 Different Trips in One Place This post about

Couples activities include romantic experiences like walking on the

Parents traveling with children are recommended fun activities like

20 Travel Review Websites 3 Different Trips in One Place This post about Phuket provides different tips for different types of family travelers. Couples activities include romantic experiences like walking on the beach and spa treatments. Parents traveling with children are recommended fun activities like swimming with fish, and trips with older parents are all about relaxation and safe activities

Sina Weibo An Evolving Platform After months of decline, mass communication tool Weibo made a

users (+30% yoy) Dec 2017 90% traffic is from mobile Live streaming 23,000,000 sessions in Q3

21 Sina Weibo An Evolving Platform After months of decline, mass communication tool Weibo made a comeback in 2017 and recorded strong growth in advertising and usage driven by video and live streaming. Luxury content is trending again on the platform, and the platform is most popular among the Post-95 generation ml registered users 376 ml monthly active users (+33% yoy) Dec ml daily active users (+30% yoy) Dec % traffic is from mobile Live streaming 23,000,000 sessions in Q3 (+124% Q2 over Q3 increase) Short videos 1,840,000,000 average videos posted per day in Q3 (740% y-o-y increase) Weibo post about a patisserie in Paris by KOL Linlin, a professional photographer 2 bl videos watched daily! (Feb 2017)

Weibo s mass communication platform is a

22 Mommy Posts on Weibo Like in the West, China has no shortage of Mommy s blogs. Weibo s mass communication platform is a popular channel for mothers to share their experiences with their children online. Tapping into KOLs and celebrities is an effective way for travel brands to gain parents trust and attention

23 Video Content Digital video content is watched by 90% of Chinese internet users. New, short video platforms especially are becoming more popular, with older, long-form video platforms like Youku fighting to keep up. The most popular apps are Miaopai, Toutiao Video, Kuaishou and Meipai. These, alongside live streaming platforms, have been embraced by luxury brands and KOLs. Having your destination featured on a TV show or film that s popular in China can also make a big impact. Destination Canada invited Chinese celebrity Nana Ouyang to visit Montreal and created a long-form video of her trip. The NTO also uses short-form and live streaming video platforms

to rural places. The series attracts 75 million viewers on average.

24 Video Where are we going, Dad? 爸爸去哪儿 The popular TV show sees five fathers and their children traveling to rural places. The series attracts 75 million viewers on average. Mostly set in China, the show s second edition took place in New Zealand, Australia and Fiji

25 Marketing to Family Travelers A Few Tips 1. Think about the type of family traveler who is more likely to visit your destination/hotel/attraction and adapt your product accordingly. Be ready to accommodate large groups of family members traveling together and understand that a older person might prefer to eat more Chinese food, while the younger family members will be more adventurous. 2. Consider the time of year when family travelers are likely to travel and plan your marketing campaign accordingly. Extended families will travel together during Chinese New Year and parents will take their children abroad during the summer months when school is off. 3. Evaluate who the real decision maker is. Mothers will often be the ones doing most of the research for the trip, but they will pay special attention to any child-friendly hotel services, to fun and educational activities for children. If traveling with grandparents, mothers will make sure to choose a safe and quiet location, such as a cruise, which offers good entertainment options for the young as well. 4. Create content which resonates with the decision maker and make sure to use the right digital channels to reach your audience. Young families traveling with children and bringing their own parents overseas are likely to be digitally savvy and conduct their research online

Michaela Mentasti Marketing Director M +86 186 1174 0817 Email: michaela.mentasti@dragontrail.

26 Michaela Mentasti Marketing Director M michaela.mentasti@dragontrail.com Website: HelloDragonTrail

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