HONG KONG: IMAGINE. HAWAI I. YOUR DISCOVERIES PRESENTED BY YVONNE MA HTHK DIRECTOR MARCH 7, 2018
INDUSTRY UPDATE AND TRENDS INDUSTRY FACTS IN 2017 72.8 million air traffic, 3.3% YOY 12.6 million (Jan Jun 2017) departed at the airport, 11.6% YOY 80,000,000 70,000,000 Civil International Air Traffic Statistics at HKIA 2010-2017 87% prefer FIT in 2017 compared to 84% in 2016 60,000,000 50,000,000 2010 2011 2012 2013 2014 2015 2016 2017
HONG KONG TOURIST ARRIVALS IN HAWAI I 119 NEW HAWAI I TRAVEL PRODUCTS CREATED FROM JAN DEC 2017 16% 7,586 ARRIVAL NO. JAN DEC 2017 YOY 8,800 JAN DEC 2017 EXPENDITURE USD 15,840,000 AVG STAY #Research based on MIDT report of all airlines booking data 2017
AIRLIFT ACCESSIBILITY Airlines Via (1 stop) Total Duration Air Fare USD (excluding tax) ANA Tokyo 13 hr 574 *United Airlines Guam / Tokyo 13 hr 5m/ 15h 20m 495 / 685 China Airlines Taipei 13h 10m 595 *China Eastern Airlines Shanghai 13h 20m 1,319 *Korean Air Seoul 14h 40m 1,248 Asiana Airlines Seoul 15h 805 Air China Beijing 15h 30m 1,217 *Japan Airlines Tokyo 15h 40m 1,321 *Top 4 Airlines Players driving traffic to Hawai i in 2017 #Research based on figures from various OTA in HK May 2018
PRICE POSITIONING OF HAWAIʻI AGAINST COMPETITIVE DESTINATIONS Pricing Comparison (Flight + Hotel 5D3N) USD Variance 2018 Hawaiʻi Package 1,147 USA Mainland Package 1,053 8.2% cheaper Australia / New Zealand Package 785 31.6% cheaper Finland Package 963 16% cheaper Maldives Package 691 39.8% cheaper Fiji Package 1,085 5.4% cheaper Guam / Saipan Package 560 51.2% cheaper Bali Package 511 55.4% cheaper Thailand Package 281 75.5% cheaper Japan Package 601 47.6% cheaper
STRATEGIES IN 2018 Continue to drive brand awareness and assist in trip planning activities to reduce perceived barriers Increase in educational sessions for travel trade Encourage island dispersal and enlarge spectrum of product offers Expand Hawai i presence across online channels Continue to focus on nature and cultural experiences
KEY CO-OP PARTNERS IN 2018 Goal: +20% Total of Arrivals by 2018
KEY INITIATIVES: HONG KONG 2018 Trade Education CAMP ALOHA SALES MISSION Green Dreams Nikon I am ALOHA! Pink Dot - LGBT Romance
GREEN DREAMS (MAY) Target: High-end Travelers Promote eco-friendly destinations/activities Enjoy travel with a conscience KEEPING IT PONO! Educate the visitors via earned media
NIKON I AM ALOHA (JUL)
PINK DOT HK X LGBT (OCT) Capture a greater market share of LGBT travelers from HK market = 700,000 population New product offerings to retail agencies and high spending niche market Pink Dot HK is a free, annual outdoor carnival and concert in support of inclusiveness and diversity Increase awareness of range of Hawai i offerings Promote equality to HK market, spreading Aloha spirit!
CHINA : HAPPY HEALTHY HAWAI I REENE HO-PHANG HTC MANAGING DIRECTOR MARCH 07, 2018
China Market Overview CHINA OUTBOUND TRIPS CHINA TO USA ARRIVALS Million 140.0 120.0 100.0 80.0 70.3 83.2 94.2 107.0 117.0 122.0 128.0 25% 20% 15% 10% 3500 3000 2500 2000 1807 2190 2591 2972 2797 80.0% 70.0% 60.0% 50.0% 40.0% 60.0 57.4 5% 1500 30.0% 40.0 0% 1000 20.0% 10.0% 20.0-5% 500 0.0% 0.0 2010 2011 2012 2013 2014 2015 2016 2017 P -10% 0 2013 2014 2015 2016 2017 P -10.0% *Source: China Tourism Academy *Source: NTTO China Outbound Tourist Growing Rate SLOW DOWN China to USA Arrivals 5.9% Business + Leisure Travel China to Hawai i 2017 Arrivals 7.9% 151,295 pax
Intense Competition Airlift Changsha LA Beijing Las Vegas Chengdu LA Chengdu New York Chongqing LA Shenzhen Beijing LA Shanghai San Jose Shenzhen LA Hangzhou San Francisco Chengdu New York Chengdu Hangzhou LA Xiamen Shenzhen Seattle Fuzhou New York Xiamen LA Chongqing New York Shanghai Chicago Kunming Qingdao San Francisco Beijing LA Shanghai - Atlanta Xi an San Francisco 300 Weekly Direct Flights into Continental USA 20 Launched in 2017 12 Weekly Direct Flights into Hawai i
Airlift 2017 Total FIT 140,576 PAX Direct Airlift Capacity Top 10 Airlines China to Hawai i * Data from Airline DDS System Airlines Weekly Frequency Weekly Seats 70,000 60,000 50,000 46% 3 879 3 903 6 1,806 40,000 30,000 20,000 10,000 22% 9% Total 12 3,588 0
Airlift - 2018 Chinese New Year 2018 Chinese New Year Increase Air Seats Charter Flights 696 N/A Total Flights 1,674 2,547 4,917 Total Increase 2,370 2,547
HTC Initiatives Market Performance *Data from HTA
Hawai i - China s #1 Highly Recommended Destination YouGov Syndicated Research * Data from SMG Insight / YouGov
China Target Segments Luxury Escapees Other Family Culture Adventure Religion Self Travel YOLOs Multi-Generation Families Relax Business *Research from Sabre China Traveler Need
Camp Aloha 2018! Buyers From 16 China Cities Hong Kong Shenzhen Guangzhou 5 First Tier Cities 11 New First Tier Cities Wuhan Beijing Chongqing Chengdu Changsha Xi an Shanghai Hangzhou Suzhou Ningbo Shaoxing Wuxi Nanjing Camp Aloha Station Participate Partner City
300 New Products OTAs, Luxury, Travel Operators
FIT Co-op Partners
Luxury Co-op Partners
MCI Overview Upcoming Potential Business Tentative MCI Groups Top 3 Groups Attendance Date 19 Groups Direct Sales Company 3,000 May, 2019 9,575 Attendance Direct Sales Company 1,600 April, 2019 21,105 Room nights Insurance 450 April, 2018 Short-Term Market Hurdles Concerns for VISA Approvals Rate Uncertainty and changes for Executive Order
MCI Overview Market Counter Measures Sales Promotion Sales Blitz Counter Measures HTC Visa Support HTC VISA SUPPORT SERVICES Group Appointments Documentation US Embassy & Consulate Liaison Incentive Pack Special Airfare
Happy Healthy Hawai i 2018 INITIATIVES 7. Be Inspired MCI Pack 1. Sky Traveler 6. Little Astronomer of Hawaiʻi 乐活 2. Diamond of Islands 5. Cuisine of ALOHA Lè huó 4. Island Styles of Seasons 3. Hawaiʻi Baby Ambassador
Leisure Initiative #1 : Hawaiʻi - Diamond Of All Islands
Leisure Initiative #2: Hawaiʻi Island Styles Of Seasons
Leisure Initiative #3: Hawaiʻi Baby Ambassador
Leisure Initiative #4: Food Culture Of Aloha
2018 Targets! Target KPI 24,000 Incremental Visitor Arrivals US$43.2 Million Incremental Expenditures Generated 88 Million Number of Impressions US$16.5 Million PR Value 45,000 Total Tentative Room Nights 14,000 Total Definite Room Nights 10,000 Total Definite Room Nights (New to Hawaiʻi)