Pierre Gervois: “Chinese Millennial Tourists in the U.S. might prefer to read travel-related content in English”

Chinese Millennial tourist - Gervois magazineThey speak English now (Just in case you didn’t notice).

They are the millennial Chinese travelers in the United States.

They are the Chinese tourists coming to discover the United States of America and to buy high quality Made in USA products.

They are the Chinese businessmen and businesswomen coming to invest in American companies and create U.S. jobs.

They are the smart Chinese millennial entrepreneurs coming to America to create start ups and contribute to America’s leadership in future technologies.

They are the Chinese guests fed up to be disrespected in luxury hotels when asking if they really can afford to pay for a suite when they ask for one and are offered first the cheapest room available.

They are the Chinese businessmen walking into a bespoke suit company in New York City and asking for a hand made in America suit because they also deserve to wear the finest clothes. (No, they are not only interested in “I Love NY” Made in China T-shirts)

They are the Chinese travelers annoyed to be depicted by U.S. marketing agencies as using only Chinese social media networks such as Weibo and WeChat, when they are actually using Instagram, Twitter and Facebook to stay in touch with their U.S. friends and freely discover the world.

They are the tourists who have spent $40Billion in the U.S. in 2016

They are the LGBTQ+ Chinese travelers wanting to be as respected as any other tourist and find safe places to just be who they are.

They are the Chinese shoppers who find utterly ridiculous when Western luxury brands add a dragon or a Chinese symbol on a watch or a handbag and expect that they’ll specifically want to buy this model.

They are the Chinese tourists who are grateful for the warm welcome they have received by American people when they were doing horseback riding or cowboy shooting. (Yes, they are not only obsessed by shopping in large shopping malls but want to discover the various aspects of America’s culture and heritage).

They are the Chinese travelers who are proud of their Chinese cultural heritage and Chinese language, but who also speak English and prefer to read in English original stories about the United States.

They are the Chinese travelers who are fluent in English and understand exactly what some people say about them when they are traveling overseas.

Actually, they are exactly the same as any other traveler in America.

By Pierre Gervois, Founder of Gervois Hotel Rating, Publisher of Gervois Magazine, Hospitality & tourism keynote speaker and expert about marketing to outbound Chinese tourists.

 

Wealthy Chinese travelers favor boutique hotels when traveling overseas

STC Display 2016Among the biggest trends among China’s luxury travelers is the growing popularity of boutique hotels, according to the ILTM Asia event in Shanghai.
With 60 percent of High Net Worth Individuals (HNWIs) reporting that they spend over 3,000 RMB (US$441) per night when they stay at hotels, the future looks bright for luxury hotels catering to China’s growing number of high-end travelers. While large luxury chain hotels remain dominant on the list of HNWIs’ preferred accommodation providers, the report finds that HNWIs now increasingly favor boutique hotels—a clear significant shift from the trend just a few years ago.
For wealthy Chinese travelers, The Ritz-Carlton was the most popular hotel group in 2016, followed by the Banyan Tree, the Four Seasons, Mandarin Oriental, Fairmont and the Peninsula. The luxury boutique hotel group Aman also broke into the top 10, and Chinese HNWIs’ favorite boutique hotel brand, Banyan Tree, keeps climbing on the list of hotel brands preferred among luxury travelers. Hilton, while not topping the overall list, still remains the preferred business hotel for survey respondents. Ritz-Carlton, which tops the list, also has the by far most popular membership scheme among overall luxury travelers and millennial luxury travelers alike at 33 percent and 31 percent membership rates respectively. In comparison to airline membership schemes, hotel membership rates remain low among China’s wealthy. Nevertheless, Ritz-Carlton’s jump in membership rates by 19 percent compared to the year prior indicates that there is substantial interest in membership schemes among luxury travelers given the right incentives.

Advertisement Tower - Gervois Hotel Rating May 2017 featuring Pierre GervoisAccording to Pierre Gervois, Expert in marketing to affluent Chinese outbound travelers and Publisher of the prestigious STC magazine, “High Net Worth Chinese outbound travelers’ behavior pattern is now exactly the same as other HNWI travelers from the U.S. and Europe. They want sophistication, exclusivity, and experiences that money only can’t buy”
Among the biggest trends among China’s luxury travelers is the growing popularity of boutique hotels. With 60 percent of High Net Worth Individuals (HNWIs) reporting that they spend over 3,000 RMB (US$441) per night when they stay at hotels, the future looks bright for luxury hotels catering to China’s growing number of high-end travelers. While large luxury chain hotels remain dominant on the list of HNWIs’ preferred accommodation providers, the report finds that HNWIs now increasingly favor boutique hotels—a clear significant shift from the trend just a few years ago.
For wealthy Chinese travelers, The Ritz-Carlton was the most popular hotel group in 2016, followed by the Banyan Tree, the Four Seasons, Mandarin Oriental, Fairmont and the Peninsula. The luxury boutique hotel group Aman also broke into the top 10, and Chinese HNWIs’ favorite boutique hotel brand, Banyan Tree, keeps climbing on the list of hotel brands preferred among luxury travelers. Hilton, while not topping the overall list, still remains the preferred business hotel for survey respondents. Ritz-Carlton, which tops the list, also has the by far most popular membership scheme among overall luxury travelers and millennial luxury travelers alike at 33 percent and 31 percent membership rates respectively. In comparison to airline membership schemes, hotel membership rates remain low among China’s wealthy. Nevertheless, Ritz-Carlton’s jump in membership rates by 19 percent compared to the year prior indicates that there is substantial interest in membership schemes among luxury travelers given the right incentives.

While authentic and unique experiences are highly sought after by China’s luxury travelers, the same applies to a much lesser degree in terms of accommodation. Only 25 percent of HNWIs interviewed for the report had even considered Airbnb-style accommodation options, and instead preferred private boutique hotels and yachts when considering options other than brand hotels. In fact, only 30 percent of respondents said that they have the impression that Airbnb-style rentals allow them to better experience local life—arguably defeating the purpose of rentals for travelers that put little importance on cost-effectiveness. “I think that in a close future the category of luxury Airbnb’s will attract the youngest generation of Chinese HNWI. Now is the right time for Airbnb owners to promote themselves in China”, Pierre Gervois added.
Instead, boutique hotels seem well-positioned to benefit from Chinese HNWIs’ lust for authentic and unique travel experiences. With accommodation cost of little concern for these travelers, boutique hotels certainly have an exciting future ahead of them in China’s luxury travel market.

Source: ILTM Asia / Skift / Jing Daily / Ritz Carlton

Chinese travelers want personalized service

Chinese wealthy gentleman - China Elite FocusChina’s outbound luxury travelers spend $65,000 per household on tourism per year, including $34,000 on travel shopping, according to a new study from Marriott International.

Chinese outbound tourists have long been a high-priority group for luxury brands, but the demands and habits of younger travelers are changing quickly. The digital natives aged between 18 and 36 years old want a more personalized experience, including superior guest services and smart device integration.

China’s young luxury travelers go abroad between three and four times a year on average, primarily for leisure. While France remains the most popular destination in Europe, Japan is the preferred shopping destination given its proximity and favorable exchange rates, while Australia is the preferred leisure destination.

Australia has long been a developed economy, but it is less commonly seen as a haven for growth than North America, and luxury’s home in Europe has also pushed Australia to the back burner for many brands aiming to capitalize on China’s growing tourism rates. A strong presence in Australia could entice wealthy vacationers to make a purchase.

Moreover, western brands should be aware that summer travel is less common in China. National Day Golden Week travel in the early fall and travels for Chinese New Year are nearly two and three times as likely, respectively.

As with North America’s millennials, China’s young travelers get most of their travel information digitally, largely from official WeChat accounts, underscoring the platform’s importance. C-Trip, Qunar and Tuniu are also popular third-party platforms on which hotels should strive for good placement.

While the above generation is more closely defined by a desire for material goods, a reaction to globalization and advertising in the wake of China’s emergence from poverty, its young travelers strive for more adventurous travel. Hotels and retailers alike should tailor messages to these consumers to emphasize experiential components and offerings.

More specifically, over the next three years global travel is expected to increase 25 percent, while polar exploration grows 32 percent, adventure travel by 52 percent and road trips by 75 percent.

However, personalized service is still the biggest consideration in traveling for luxury travelers. Besides a liking for amenities, being able to choose pillows of different firmness and having a butler or personalized service through digital channels are also important. Seventy-three percent demand WiFi while 55 percent want smart TVs, while unique art and design are also high draws.

With luxury growth stalling around the world and quarterly earnings being largely at the mercy of Chinese tourists and which markets they enter, the country remains the top concern for marketers. As it transitions to a consumer-driven economy, China’s growth has fallen below the double-digits that were beginning to feel normal, but it still offers enormous opportunity.

Chinese residents will make 90 million outbound trips in 2020, with that number increasing by an additional 36 million over the following decade, according to a report by Euromonitor.

Outbound trips have increased on average by an impressive 13 percent since 2000, helping China overtake Japan as the second largest consumer market in 2011. With the significance and size of the Chinese tourist market only projected to swell, brands will need to develop a more nuanced understanding of the market in order to reach consumers. In particular sophisticated native advertisement campaigns in influential digital travel publications catering to China’s super-rich, such as the Shanghai Travelers’ Club (STC) magazine, give good results to reach China’s elite.

However, as brands cater to Generation Y consumers and look to the future, they must be as aware of generational differences in China as they are in the West.

In a reversal of the more materialistic tendencies of their parents, almost 95 percent of Chinese Generation Z consumers say it is essential for brands to be sustainable and environmentally conscious, according to a report by RTG Consulting.

The continued growth of China over the next several years will ensure that its consumers remain prime targets for brands for the foreseeable future, as even a slowed China exceeds the growth rate of western nations. As a result, brands will need to make a connection to this group, the first born in a fully modern China, in the interest of long-term success

Source: TheTopTier