EMBRACING THE NEW ERA
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1 EMBRACING THE NEW ERA Joseph Wang Chief Commercial Officer, TravelDaily
2 Agenda Steady Growth of Outbound Travel & Int l Air Passengers Organized Tours Kept Growing How Travelers Search, Shop & Book Emerging Independent Travelers Habits at the Mobile Frontier Embarking On Globalization
3 Steady Growth In Outbound % % 22.43% 18.41% 19.49% % % % % % H1 2020P 8% 15.00% 10.00% 5.00% 0.00% Source: CNTA Passenger (Million) Annual Growth (%)
4 Steady Growth In Air Passengers 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 33.30% % % % 9.70% 10.30% 10.85% 10.70% 9.50% 11.30% 10.50% 8.95% Jan-May Source: CNTA International Routes Annual Growth (%) Passenger (Million) Annual Growth (%)
5 Top 20 International Routes (H VS. H1 2015) Passengers(Thousands) Growth Rank by Destinations H H Rate% Growth Rate Thailand 2,559 1, % 6 South Korea 2,218 1, % 12 Japan 2,062 1, % 10 Hongkong 1,654 1, % 18 Taiwan 1,354 1, % 16 The US % 4 Australia % 7 Singapore % 13 Macau % 17 Vietnam % 2 Germany % 19 Canada % 9 France % 14 Malaysia % 1 Indonesia % 5 The Philippines % 3 Cambodia % 20 Italy % 11 Russia % 8 The UK % 15 Source: TravelSky (GDS in China)
6 ORGANIZED OUTBOUND TOURS KEPT GROWING
7 Steady Growth In Outbound % % % 15.05% % 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Source: CNTA USD / Billion Growth Rate YoY(%)
8 Outbound Travel, 2015 Total Outbound Travel Spend, 2015* $205.7 Billion = 1.3 Trillion Shopping 22% Dining 6% Air 10% Lodging 9% Other (Rail, Coach, Cruise, Car) 2% Destination activities 3% Leisure trips outside of China in 2015** 120 Million Visitors Vacation packages 48% Source: * Phocuswright s China Unbounded: The Rapid Rise of China s Outbound Millions Special Project ** CNTA
9 Outbound Travel, % 23% 47% of Chinese travelers took outbound leisure trip in 2015 For 23% of them, it was their first trip outside of mainland China Source: * Phocuswright s China Unbounded: The Rapid Rise of China s Outbound Millions Special Project ** CTNA
10 Outbound: Locals Lead Sites Used to Book Outbound Travel, 2015: 69% 56% 36% 32% 29% Ctrip Qunar Tuniu Ly.com Alitrip/Taobao Expedia, Priceline outside the top 10, each used by less than 3% of China s outbound travelers. Source: Phocuswright s China Unbounded: The Rapid Rise of China s Outbound Millions Special Project
11 EMERGING CHINESE INDEPENDENT TRAVELERS
12 When I m used to the ease of mobile travel in China, I don t want to give up this comfort when traveling outside China.
13 656 million Smartphone Users in China H1 2016
14 Smartphone Users By Age Groups (China vs. Japan) 36% 37.30% 34% 15% 16% 13.40% 19% 16% 8.90% 3.90% < >55 Source: TalkingData & Morketing China Japan
15 The Highest Growth Rate Comes From 3rd-tier Cities In China. 35.1% 33.2% 41.5% 1st-tier Cities 2nd-tier Cities 3rd-tier Cities Source: TalkingData Chinese Smartphone User Analytics Q Q1, 2015 Q3, 2015
16 225 Cities In China Will Reach Over 1 Million Population By China 2015 Europe 2030 China Source: TravelDaily China
17 Index of Travelers Preferences of Apps Education Radio VIdeo Game Travel O2O App Market Banking Transportation Video Photography Beijing Shanghai Guangzhou Tianjin Hangzhou Source: TalkingData Chinese Outbound Travel Analysis Report 2016 Lunar New Year
18 EMBARKING ON GLOBALIZATION
19 Strategic Layout Map of HNA Group
20
21 It is clear that the global travel market is swirling with this "China whirlwind".
22 Summary Outbound travel market continued to make strides in China. Despite the slowing of economic growth, its move away from an investment-led economy to a consumption-driven economy will further stimulate demand for outbound travel over the long run. Not just traveling farther and spending more, but also experimenting with how they experience the world. Requests for tailor-made tour products are providing an opportunity to online travel agencies to expand market share in China. Beijing, Shanghai and Guangdong are relatively mature markets in terms of product development and consumer travel behavior. The potential growth will come more and more from 2nd-tier and 3rd-tier cities. China is the first country in the world where mobile accounts for a majority of online transactions. The use of online sources was well above the average across all markets. China's travel companies are quickly embarking on globalization.
23 THANK YOU! Joseph Wang Chief Commercial Officer, TravelDaily
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