2014 China Marketing Plan

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1 2014 China Marketing Plan Presented by Brenda He Travel Link Marketing

2 Today s Agenda Introduction China Market Profile Review of Existing Hawai i Product 2014 Strategies Working with Industry Partners Q & A

3 Travel Link Marketing Your Presence Across China Shenyang Chengdu Chongqing Beijing Dalian Tianjin Jinan Qingdao Nanjing Hangzhou Shanghai Xiamen Guangzhou Shenzhen

4 Travel Link Marketing TLM s Establishment, Development and Accomplishments The agency Only focuses on and specialises in the Tourism Industry Seasoned Experience - 13 representation clients Strong Trade/Media Network - 4 China offices and coverage in Over 20 cities 8 years experience with 35 full time employees News Wire Service - Over 3,000 journalists E-publication Travel Link Daily - Over 56,000 travel trade First MICE specialized marketing representative in China

5 China Outbound Travel

6 Source: CNTA report 2012 China Outbound Travel Table: Chinese outbound visitors

7 2012 Chinese Outbound Travel Flow Source: CNTA Report 2012

8 China Outbound to USA Chinese travelers are visiting the United States in increasingly large numbers -and will continue to grow Source: U.S. Department of Commerce. OTTI 2010 Visitation Reports ( 000)

9 Chinese per person per trip spending in USA China ranks No.1 in spending per traveler to the US - $6,250 per person per trip

10 Visa improvements New visa improvements encouraging Chinese travelers to visit U.S. Visa Improvements Made Reduced Fee Easier Application & Payment Enhanced Consular Operations Interview Waiver Pilot Program Effect Lowers the cost to visit the US for Chinese travelers Offers more convenient access to US visas Processes more visa applications annually Offers easier and quicker renewal for expired visas

11 Travel Distribution Channels

12 Travel Distribution Channels 1,240 outbound travel agents Chengdu Chongqing Beijing Dalian Tianjin Jinan Qingdao Nanjing Hangzhou Shanghai Xiamen Guangzhou Shenzhen Shenyang - Wholesaler - Tour Operator with Retail branches - Special interest - OTA - MICE companies

13 Media Landscape

14 Consumer Media Broadcast media (includes radio and TV) Printing media (includes newspapers and magazines)

15 Online Media Online New Media

16 Social Media

17 Travel trade media Travel Link Daily (In House) TTG Asia Travel Weekly For more details please refer to Appendix 1 Chinese Media Analysis

18 Traveler Profile

19 Chinese traveler profile

20 Chinese traveler profile

21 Chinese traveler profile

22 Chinese traveler profile Inexperienced Travelers Value = how much can I do for my money. Large groups, range from low end to quality group packages. Continue to grow geographically from tier 3 cities to tier 4 cities Attracting the quality groups is more sustainable for the destination in the long term. 1.5 Experienced mass travelers Value = what am I going to personally get out of it, e.g. prestige. Independent travel in China is primarily Individually organized small group travel. High level of involvement in the planning of the trip. to offer Air plus Hotel plus optional tour package is ideal for repeat visitors Experienced Affluent travelers More likely to be from Tier 1 city. They are likely to travel in a small groups of 3 to 10 people More likely to stagger their trips to avoid peak seasons They are involved in, or control, the booking process Destinations are selected based on the experience rather than price; unique experiences are sought after

23 Targeted Market Size

24 Emerging Chinese middle class 3 times of GDP USD $6,190 * 3 = USD $18, million in million in 2020

25

26 Airlift

27 Airlift (Direct Flight) Shanghai 234 Seats/Flight 3 Flights/Week 52 Weeks 3 Flights per week = 36,504 seats/year

28 Airlift (One Stop Flights) Beijing 180 flights/week Shanghai 349 flights/week Guangzhou 52 flights/week

29 Airlift (One Stop Flights) Northern China Tianjin Dalian Shenyang Eastern China Nanjing Hangzhou Jinan Southwest China Qingdao Chengdu Chongqing South China Shenzhen (flights / week) Xiamen

30 Review of Existing Hawai i products

31 Brochure Audit Reviewed 388 brochures featuring US product By 87 tour operators in tier 1 cities Plus 20 OTAs featuring the US 1206 US products within the brochures 36% included Hawai i product (413) 9 featured themed products: - Golf tours: 4 - Honeymoon: 3 - National Day Celebration: 1 - Summer Festival: 1

32 Brochure Audit: Hawai i Product

33 Brochure Audit: Island distribution O ahu 370 Maui 31 Hawai i Island 37 Kaua i 7 Moloka i 0 Lāna i 1

34 Brochure Audit: Image? Image could be made clearer Strong competition Limited trade knowledge

35 Brochure Audit: Itineraries O ahu Most tour operators offer the same itinerary which sells O ahu only; not the other islands. Many tour operators are not aware of the other islands and the uniqueness of these islands.

36 Market Potential

37 Important factors of destination choice Safe & Secure Friendly citizens and cultural heritage Shopping World class beauty Value for money & family friendly Good food and wine

38 Preferred international luxury destinations 1. France 2. US 3. Singapore 4. Switzerland 5. UK 6. Italy 7. Australia 8. Dubai 9. Germany 10. Maldives Source: The Hurun Report, 2013, The Chinese luxury traveler

39 Competitor island tourism destinations 1. Maldives 2. Bali 3. Tahiti 4. Phuket 5. Mauritius 6. Seychelles 7.Pattaya 8. Koh Samui 9. Fiji Source: The Hurun Report, 2013, The Chinese luxury traveler

40 2014 Targets for China 2012 Final 2013 T 2013 Anticipated (1st Half Actual +2nd Half Targets) 2014 T (Aug 2013) % Chng (2014T vs Ant.) Total Expenditures (in Mil.) % PPPD$ % Total Arrival 116, , , , % LOS %

41 Strategies Hawai i Capacity Building Need strong commitment from industry partners New Product Development Launch new products for greater diversity Travel Trade Reach Breadth and depth PR Focus Branding, theme products/campaigns communication

42 Target Market Tier 1 cities Beijing, Shanghai and Guangzhou Target market: people that have visited the USA (Avid Leisure) Activity: Promote Hawai i as stand-alone leisure destination, increase the number of Hawai i 7-8 Nights ; both FIT and GIT product Brand communication: Through themed product Golf, Romance (Honeymoon), Family, Education to build the image of Hawai i as attractive Island destination

43 Target Market Tier 2 cities Target 11 Cities Target market: 1st time travelers to USA (Families) and rich Chinese who have been to USA Activities: Ensure that Hawai i is featured in itinerary of every product to the USA, Launch themed product Romance (Honeymoon), Education, Family Brand communication: must see Islands with unique culture; increase the profile of the Hawai i in Tier 2 cities

44 Working with Industry Partners TLM Hawai i Representative Office c/o ESP Hawai i Product Development Branding Create New Themes / Itineraries Group Package FIT Package Hawai i Supplier, China TT TLM Trade Managers & MCI BD manager Beijing, Shanghai, Guangzhou, Chengdu Travel Link Daily TLM PR manager, Digital Manager Sales Channels Marketing Channels OTA INTEGRATED COOP MARKETING Digital Airlines& Tour Operators Tour Operators, Airlines, Hawai i Suppliers, Embassy/ Govt

45 Working with Industry Partners Joint Sales Call Opportunities Beijing, Shanghai, Guangzhou, Chengdu Target MICE Agent Target wholesalers, tour operators Target FIT/OTAs/Niche market 11 Tier 2 cities Develop trade relationship with tour operators Sales Mission Leisure & MCI

46 Working with Industry Partners New Product development Quarterly networking, industry updates workshop On-going inquire support Monthly industry updates newsletter Bi-weekly E-newsletter sent to travel trade Feature and free distribution PR/Social media Feature and on-going promotion campaign

47 Contact Us Brenda He General Manger/Director

48 Mahalo! 谢谢!

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