So what do hotel suppliers, airlines, ancillary service providers and travel distribution players face when they think about China?
I’ll be attending the annual China Travel Distribution Summit in Beijing on September 15-16 - coming at a time when China’s tourism industry has grown 19% in first half of 2010 and is expected to exceed original estimates of $205 billion.
Eva He, editor of TravelDaily.cn and the organizer of China TDS, shared some thoughts in an email interview.
EN: What are some of the important trends featuring in the upcoming Travel Distribution Summit?
EH: One key theme is how China can lead the way in helping the world’s travel industry rebound from the recession.
China’s travel market is still one of growth in all areas. I’m also very interested in how travel companies should be using the social media tools to engage with Chinese consumers and build brand loyalty.
Many travel industry professionals [in China and internationally] do not realize how important social media is and how to get started.
Trends in the Chinese search engine market is also important. Google's well-documented troubles in China have presented significant challenges to international travel companies who are relying on SEM tactics to reach Chinese online travelers.
Understanding and projecting the future of search in the country - what players will dominate, how they will do business, and how they will interact with travelers - is a key to navigating this dynamic market.
EN: You mentioned Google’s troubles. And recently Jeff Immelt, CEO of GE, as reported by Financial Times, shared his frustration with China, saying “I am not sure that in the end they want any of us to win, or any of us to be successful.” Why should international travel companies even look at China? Isn't it a waste of money and time on an unfair playing field?
EH: While most global industry leaders are charting their courses prudently, some however, are looking at creating exciting new opportunities or new markets in the midst of the entire crisis.
China has remained the hotspot of world’s travel market by achieving 19% growth rate for the first half of 2010, measured by total domestic travel revenue.
China’s domestic air traffic also achieved 17.6% growth on a year-to-year basis. For global companies, China is no long the future. It is the present.
China has become the focus of a world that is looking for a way out of swamp.
The anticipated deregulation of China’s outbound travel and GDS market will present the significant growth opportunities to the world’s travel and tourism industry.
EN: What advice do you have for foreign travel companies who are looking at the Chinese market?
EH: First, building a strong local team should be the No.1 priority. Trust them, empower them and listen to them. For some reason, this seems to be harder than it sounds.
Second, in the China market you need to learn from making mistakes. It is always hard to make no mistakes while you are entering a new market. Learning from your own mistakes is the best way for future improvement. Be patient to your local team.
Third, you need to focus on the long-term growth rather than on the short-term P&L.
Fourth, you need to invest time in talking to the consumers. Chinese travelers are different. Do not try to duplicate all your winning strategies into your China operation
NB: Discount code for Tnooz readers - 10% discount off of the current rate of RMB 3800 from the event. Use the code “CTS555″ when you register and obtain a $50 off. Register.
NB: Chinese tourists photo credit Jing Daily.