EMBRACING THE NEW ERA Joseph Wang Chief Commercial Officer, TravelDaily
Agenda 1 2 3 4 5 6 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
Steady Growth In Outbound 250 25.00% 200 20.42% 22.43% 18.41% 19.49% 200 20.00% 150 100 50 0 107 83.18 89.55 70.25 57.38 7.65% 47.65 3.95% 120 12.15% 59.03 4.30% 2009 2010 2011 2012 2013 2014 2015 2016 H1 2020P 8% 15.00% 10.00% 5.00% 0.00% Source: CNTA Passenger (Million) Annual Growth (%)
Steady Growth In Air Passengers 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 33.30% 436 392 354 26.10% 319 293 18.80% 194 13.70% 9.70% 10.30% 10.85% 10.70% 9.50% 11.30% 10.50% 8.95% 2011 2012 2013 2014 2015 Jan-May 2016 500 450 400 350 300 250 200 150 100 50 0 Source: CNTA International Routes Annual Growth (%) Passenger (Million) Annual Growth (%)
Top 20 International Routes (H1 2016 VS. H1 2015) Passengers(Thousands) Growth Rank by Destinations H1 2016 H1 2015 Rate% Growth Rate Thailand 2,559 1,845 38.70% 6 South Korea 2,218 1,897 16.92% 12 Japan 2,062 1,574 31.00% 10 Hongkong 1,654 1,606 2.99% 18 Taiwan 1,354 1,243 8.93% 16 The US. 942 640 47.19% 4 Australia 575 417 37.89% 7 Singapore 494 423 16.78% 13 Macau 439 413 6.30% 17 Vietnam 267 147 81.63% 2 Germany 257 259-0.77% 19 Canada 253 185 36.76% 9 France 222 193 15.03% 14 Malaysia 211 114 85.09% 1 Indonesia 192 134 43.28% 5 The Philippines 179 120 49.17% 3 Cambodia 173 177-2.26% 20 Italy 155 128 21.09% 11 Russia 148 108 37.04% 8 The UK 145 127 14.17% 15 Source: TravelSky (GDS in China)
ORGANIZED OUTBOUND TOURS KEPT GROWING
Steady Growth In Outbound 30 25 20 15 10 5 0 40.11% 19.96 17.349 14.034 23.62% 10.016 14.84% 15.05% 25.243 2011 2012 2013 2014 2015 26.47% 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(%)
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
Outbound Travel, 2015 47% 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
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
EMERGING CHINESE INDEPENDENT TRAVELERS
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.
656 million Smartphone Users in China H1 2016
Smartphone Users By Age Groups (China vs. Japan) 36% 37.30% 34% 15% 16% 13.40% 19% 16% 8.90% 3.90% <25 26-35 36-45 46-55 >55 Source: TalkingData & Morketing China Japan
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 Q3 2016 Q1, 2015 Q3, 2015
225 Cities In China Will Reach Over 1 Million Population By 2030 225 150 35 2015 China 2015 Europe 2030 China Source: TravelDaily China
Index of Travelers Preferences of Apps Education Radio VIdeo Game Travel O2O App Market Banking Transportation Video Photography Beijing Shanghai Guangzhou Tianjin Hangzhou 112 85 109 107 87 95 85 107 117 95 107 123 96 78 97 112 112 89 89 98 95 96 114 96 99 94 135 82 86 103 107 112 88 85 108 61 75 113 143 108 89 85 62 137 126 93 92 83 104 127 Source: TalkingData Chinese Outbound Travel Analysis Report 2016 Lunar New Year
EMBARKING ON GLOBALIZATION
Strategic Layout Map of HNA Group
It is clear that the global travel market is swirling with this "China whirlwind".
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.
THANK YOU! Joseph Wang Chief Commercial Officer, TravelDaily