Accenture Research Travel Flash Research China Insights€¦ · TRAVEL FLASH RESEARCH CHINA...

ACCENTURE

RESEARCHTRAVEL FLASH RESEARCHCHINA INSIGHTSFebruary, 2018

The insights in this deck are based on Chinese travelers participating in three Research studies conducted in FY17 and FY18 which have focused on:

SCOPE OF INSIGHTS

AIRLINE RETAIL – Study about behavior related to shopping behavior in airports and on flights during travel.

CRUISE – Study about attitudes toward cruising.

PRIVATE ACCOMMODATION – Study to better understand an emerging trend of private accommodation in the hospitality industry.

Copyright © 2018 Accenture. All rights reserved. Accenture 2

Chinese travelers have unique expectations and motivations regarding how they travel.

First, they have significantly higher levels of participation in retail shopping both in airports and on-board flights. They are also particularly keen on offerings such as ‘fly and collect’ which could pose a great opportunity for growth among Chinese travelers.

Second, they seem to be far less price conscious than their travel counterparts in other parts of the world. Particularly as it relates to retail shopping and with the accommodations they choose while traveling. Though they do show concerns with costs when it comes to cruising as a vacation option.

Finally, unlike travelers from other countries, Chinese travelers prefer more intimate accommodation when they travel such as staying at a bed and breakfast or with friends and family – for both leisure and business travel.

EXECUTIVE SUMMARY


1 2 3INSIGHTS FOR CHINESE TRAVELERS

RETAIL AIRLINE

Chinese travelers make up a larger share of those interested in purchasing retail on-board flights and present a tremendous opportunity to grow the ‘fly and collect’ service offering

CRUISE

Chinese cruisers are more price conscious when it comes to cruise experiences than they are with retail shopping or with accommodations when they travel

PRIVATE ACCOMMODATION

Prefer more intimate accommodations while traveling and are less price conscious regarding their selection of accommodations


AIRLINE RETAIL FINDINGS

17%

16%

35%

32%

Overall

I have never purchasedretail items when I fly

I rarely purchase retailitems when I fly

I sometimes purchaseretail items when I fly

I almost always purchaseretail items when I fly

17%11% 6%

22%30%

11%16%

10%

21%

21%32% 34%

50%

30%

27%

41% 39%34%

27%22%

Japan UnitedKingdom

China France UnitedStates

When you fly, how often are you likely to purchase retail items (duty free or otherwise)?

CHINESE TRAVELERS OUTPACE OTHERS ON SHOPPING WHILE THEY TRAVEL – UP 25% OVER PARTICIPATION COMPARED TO TRAVELERS STUDIED IN OTHER MARKETS

6Copyright © 2018 Accenture. All rights reserved. Accenture

25%

67% 84%

Chinese travelers are 25% more likelyto purchase retail items when they fly

17%6%

16%

10%

35%

50%

32% 34%

Overall China Only





15%5%

18%6%

19%7%

11%

5%

14%

14%

21%

11%

36%

47%

33%

39%

35%

58%

38% 42%35% 40%

25% 23%

Overall18-34

China18-34

Overall35-50

China35-50

Overall51+

China51+


MILLENNIAL PARTICIPATION IN SHOPPING AMONG CHINESE TRAVELERS EXCEEDS THAT OF MILLENNIALS STUDIED IN OTHER MARKETS BY 20%; OLDER CHINESE SHOPPERS DRIVE PARTICIPATION EVEN HIGHER – UP 35% OVER THE SAME AGE IN OTHER GEOS


67% v. 84% 74% v. 91% 68% v. 79% 60% v. 81%

20% 35%

17%

16%

35%

32%

Overall





29%20%

9%0%

6% 3%

18%

20%

15%

7%

10%5%

29%35%

38%

57% 43%53%

24% 24%

38% 36% 41% 39%

Low LowChina

Medium MediumChina

High HighChina


MEDIUM TO HIGH INCOME FAMILIES ARE ALSO SIGNIFICANTLY MORE LIKELY TO SHOP WHEN THEY FLY –CHINESE TRAVELERS AT THE SAME INCOME LEVELS ARE EVEN MORE LIKELY TO SHOP WHEN THEY FLY


39%

67% 93%

Medium income Chinese travelers are 39% more likely to purchase retail items

when they fly

MOST PURCHASE THEIR RETAIL ITEMS AT THE AIRPORT

14%

86%

Overall

Onboard my flight

At the airport

8% 5% 7% 10%

35%

92% 95% 93% 90%

65%

UnitedStates

Japan France UnitedKingdom

China

Regarding your retail purchases on average, are they typically completed at the airport or on-board your flight?

THE SHARE OF AIRPORT VS ONBOARD PURCHASE IS MORE BALANCED AMONG CHINESE TRAVELERS – WITH MORE THAN DOUBLE THE PARTICIPATION, COMPARED TO GLOBAL TRAVELERS, IN ON-BOARD PURCHASES...

Copyright © 2018 Accenture. All rights reserved. Accenture 10Base: Those that have ever purchased when they fly, 2070 respondents

Chinese travelers spend more on-

board than those in other markets

studied

1.5x

13%

31%

8% 9%18%

51%

87%

69%

92% 91%82%

49%

18-34 China18-34

35-50 China35-50

51+ China51+

14%

35%

62%

86%

65%

38%

Overall China

Only

China

Gen Z

Regarding your retail purchases on average, are they typically completed at the airport or on-board your flight?

…AND THAT NUMBER RISES FROM 35% FOR CHINESE TRAVELERS OVERALL TO 62% AMONG CHINESE GEN Z’ERS

11Copyright © 2018 Accenture. All rights reserved. Accenture

Chinese Gen Z travelers spend over 3x as much on

board than travelers overall

3.4x

Onboard my flight

At the airport

DIVERSE TRAVELER SEGMENTS HAVE

DIFFERENT MOTIVATIONS

What would influence you to buy more retail products on-board your flight? Ranked #1

32%

15%

7%

5%

18%

19%

9%

9%

DIFFERENT CATEGORIES OF PRODUCTS TO BUY

CHEAPER PRICES

PRICE IS IMPORTANT OVERALL, BUT PRODUCT AND CATEGORY SELECTION ARE IMPORTANT TO CERTAIN SEGMENTS


Chinese travelers may perceive the cost of onboard purchases less than the cost of airport purchases, which is driving their participation in on-board purchases at rates higher than their global counterparts

25% among Millennials24% among Airport purchasers

26% among Gen X

PURCHASES FOR AN EXTENDED PERIOD BEFORE AND AFTER FLIGHT

BETTER PRODUCT SELECTION

CHINA RESULTS

04

03

02

01

What would influence you to buy more retail products on-board your flight? Ranked #1

A NEW TOP MOTIVATOR EMERGES FOR CHINESE TRAVELERS… THEY WOULD BUY MORE ONBOARD IF THEIR PURCHASES COULD EXTEND BEFORE OR AFTER THEIR FLIGHTS


31%

15%

9%

6%

21%

18%

8%

9%

Different categories of products to buy

Cheaper prices

Better product selection

010203

18-34

36%

19%

6%

5%

14%

16%

9%

9%


Cheaper prices


35-50

29%

14%

6%

5%

14%

16%

9%

9%


Cheaper prices


51+

04Purchases for an extended period before and after flight

CHINA RESULTS

14% Gen Z

Purchases for an extended period before and after flight

Purchases for an extended period before and after flight

Chinese travelers – unlike travelers globally – rate likelihood to purchase before or after their flight in their Top 3

01020304

01020304

Cheaper prices


Different categories of

products to buy

Purchases for an extended

period before and after flight

Payment with loyalty points

Delivery/Pick up of

purchase at the airport

Online catalogs (via airline wifi)

Onboard advertising

Ability to customize the

product

Purchases via airline app

I do not plan to buy retail

products onboard flights in the

future

What would influence you to buy more retail products on-board your flight?

MORE THAN OTHER COUNTRIES CHINESE TRAVELERS ALSO PLACE HIGHER VALUE ON PAYMENT WITH LOYALTY POINTS…

15

32%

15%

7%

5%

5%

5%

5%

4%

3%

2%

17%

50%

36%

17%

11%

12%

12%

9%

7%

6%

5%

43%

12%

5%

4%

4%

2%

5%

3%

2%

2%

19%

60%

35%

15%

8%

10%

10%

9%

7%

5%

3%

43%

16%

7%

2%

4%

3%

5%

2%

2%

2%

15%

66%

39%

16%

6%

11%

9%

9%

5%

4%

5%

31%

11%

6%

3%

5%

4%

4%

2%

2%

1%

31%

47%

30%

14%

6%

16%

9%

6%

3%

5%

2%

23%

20%

9%

9%

3%

7%

3%

5%

2%

2%

16%

41%

39%

21%

18%

7%

17%

7%

9%

4%

4%

18%

19%

9%

9%

9%

7%

7%

6%

6%

5%

6%

35%

36%

19%

15%

18%

18%

12%

11%

12%

11%

Ranked Top 1

Ranked Top 2

OVERALL FRANCE UNITEDKINGDOM

UNITEDSTATES

JAPAN China

Copyright © 2018 Accenture. All rights reserved. Accenture

FLY AND COLLECT OPTIONS APPEAL TO SPECIFIC AUDIENCES

4%

20% 23% 23%

41%

5%

13% 11%16%

7%

13%

27% 26%

29%23%

50%

24% 22%

22% 16%

29%

16% 18%9% 13%

China France UnitedKingdom

Japan UnitedStates

22%

10%

24%

27%

17%

Overall

1 I am not likely to use aservice like this

2

3

4

5 I am very likely to usea service like this

What is the likelihood of you using a ‘fly and collect’ service (i.e., buy on-board a flight and collect at destination airport)?

…AND ARE SIGNIFICANTLY MORE LIKELY TO USE A ‘FLY AND COLLECT’ SERVICE, COMPARED TO OTHER TRAVELERS


79% 40% 40% 31% 29%44% v.

80%

Chinese travelers are 80% more likely to use a ‘fly and collect’ service compared to other travelers studied

22%

10%

24%

27%

17%

Overall


2

3

4


16%

2%

17%

4%

30%

5%

12%

3%

9%

6%

10%

6%

23%

10%

28%

24%

22%

11%

29%

48%

27%

36%

25%

58%

21%

38%

18%

30%

13%20%

18-34 China18-34

35-50 China35-50

51+ Chinese51+

50% v. 86% 45% v. 66% 38% v. 78%


YOUNG CHINESE TRAVELERS ARE EVEN MORE LIKELY TO USE A ‘FLY AND COLLECT’ SERVICE – 72% MORE THAN ALL OTHER MILLENNIALS STUDIED GLOBALLY AND 9% MORE THAN CHINESE TRAVELERS OVERALL


44%72%

30%

12%17%

12%

13%

12%9%

3%

5%

2%

26%

21%24%

13%

15%

6%

19%

35%32%

59%36%

49%

12%20% 18%

25%32%

41%

Low LowChina

Medium MediumChina

High HighChina

31% 55% 50% 84% 68% 90%

22%

10%

24%

27%

17%

Overall


2

3

4



CHINESE TRAVELERS WITH HIGHER INCOMES SHOW THE GREATEST PROMISE FOR A ‘FLY AND COLLECT’ SERVICE


44%

105%

High income Chinese travelers are twice as likely to use a ‘fly and collect’ service than travelers overall and 32% more likely than same income travelers in other geographies studied

0% 1%

8% 9%

34%

65%

7% 9%

19%

12%

19%

30%

30%

14%

34%

37%

13%

6%

32%

14%6% 3%

AlwaysPurchase

Sometimespurchase

Rarelypurchase

Neverpurchase

67% v. 93% 51% v. 83% 18% v. 40% 9% v 23%

22%

10%

24%

27%

17%

Overall

1 I am not likely to use aservice like this2

3

4



THE KEY TO A FLY AND COLLECT OFFERINGS IS TO APPEAL TO THOSE THAT ALREADY ENJOY PURCHASING – CHINESE TRAVELERS ARE THE BEST TARGETS


44% v. 79%China % in red

Because Chines travelers already make up a larger share of those who shop when they travel, they are the best candidates to exploit the ‘fly and collect’ offering

33%

69% 70% 70% 74%

67%

31% 30% 30% 26%

China UnitedKingdom

UnitedStates

Japan France

63%

37%

Overall

No Yes

Do you collect/use airline loyalty points on retail items outside of your flight itinerary (e.g., at the supermarket, gas station, etc.)?

CHINESE TRAVELERS ARE 81% MORE LIKELY TO USE/COLLECT LOYALTY POINTS OUTSIDE OF THEIR FLIGHT ITINERARY COMPARED TO THEIR GLOBAL COUNTERPARTS…


81%

63%

37%

Overall

No Yes55%

19%

61%

39%

72%

43%

45%

81%

39%

61%

28%

57%

18-34 Chinese18-34

35-50 Chinese35-50

51+ Chinese51+

Do you collect/use airline loyalty points on retail items outside of your flight itinerary (e.g., at the supermarket, gas station, etc.)?

…AND CHINESE MILLENNIALS ARE MORE THAN TWICE AS LIKELY TO USE/COLLECT AIRLINES POINTS OUTSIDE OF TRAVEL


119%


DEMOGRAPHICS

GENDER

54% 46%

Gen X

Greatest Generation

AGE

14% 24% 19%

Gen z Millennial

15%

BabyBoomer Generation

17%

Silent Generation

11%

COUNTRY

Total N=2,500N=500 per country

Among Chinese respondents only

23

China

USA

France

UK

Japan

20%

20%

20%

20%

20%

CRUISE FINDINGS

77%

76%

75%

A loyalty program with great offers anddiscounts

Having a resort-type vacation experience

Ability to choose a themed vacation

EXCECUTIVE SUMMARY: CHINA

02

03

Better pricing

Availability of unique on-board experiences/activities

More and better choices for off-shore excursions/off-shore activities

23%

13%

6%

18-34

35-50

51+

CRUISING ENTHUSIASTS

What would get you to considergoing on a cruise?

What would impact interest inbooking a cruise?

(Top 3)

Chinese travelers place high value on having unique traveling experiences, and this is more dominant for younger generations and higher income groups.

Younger generations and higher income groups are cruise enthusiasts.

4%

22%

25%

Low

Medium

High

Age Income


01

YOUNGER GENERATIONS AND HIGHER INCOME GROUPS ARE THE CRUISING ENTHUSIASTS. WHILE, OLDER AND LOWER INCOME GROUPS ARE THE LEAST ENTHUSIASTIC.Level of cruise enthusiasm

8% 3% 1%

88%

74%75%

4%

22% 25%

Low Medium High

Cruising Enthusiasts

The Open-Minded

The Landlubber

Income

4% 3% 7%

73%84%

87%

23%13%

6%

18-34 35-50 51+

Age

16%

80%

4%

WHO ARE THE CRUISERS?

Base: China sample, 500 respondentsCopyright © 2018 Accenture. All rights reserved. Accenture 26


THOUGH PRICE IS A BIG FACTOR, CHINESE TRAVELERS PLACE HIGH VALUE ON HAVING UNIQUE TRAVELING EXPERIENCES…

What would get you to consider going on a cruise?

Base: China sample, 500 respondents

48%

24%

24%


Better Pricing

Better options of ports of departure and return

010203

OVERALL

78%

78%

76%


Better Pricing

Availability of unique on-board experiences/activities

CHINA

Pricing and Better routes Pricing and Experience

WHAT DO CHINESE CRUISERS WANT?

27

010203

OV

ER

AL

L


…AND TWO-THIRDS OF CONSUMERS SAY ‘HAVING A RESORT-TYPE VACATION EXPERIENCE’ AND ‘ABILITY TO CHOOSE A THEMED VACATION’ WOULD IMPACT THEIR INTEREST IN BOOKING A CRUISE.Please indicate the extent to which each option would impact your interest in booking a cruise.


What would impact booking interest?

CH

INA

Percentages are Top 2 Box Scores (Some impact + Significant Impact)


28

Ability to customize my vacation options at the time of booking

74%

Ability to pre-pay for my vacation in advance order to avoid hidden

or extra charges

73%

Better dining options (dining times and choices)

72%

A loyalty program with great offers and discounts

77%


76%


75%

79%

79%

76%


WHILE YOUNGER GENERATIONS ARE MORE FOCUSED ON THE EXPERIENCE, OLDER GENERATIONS WANT LOYALTY PROGRAMS AND PERSONIZED VACATIONS OPTIONS.What would get you to consider going on a cruise?

Ability to customize my vacation options at the time of booking



18-34

79%

77%

76%



Better dining options

35-50

75%

74%

67%

Ability to fully research and book my vacation online from a single trusted website or app / Having a resort-type vacation experience


Ability to receive personalized vacation options based on the personal information and interests that I provide

51+

Loyalty and PersonalizationExperience and Discounts Themed vacations and Better dining



03

02

01

03

02

01

03

02

01

72%

70%

69%


HIGHER INCOME GROUPS ARE THE PIONEERS OF GREAT VACATION EXPERIENCE. MOREOVER, THEY EXPECT ADVANCED IN-ROOM TECHNOLOGY ALONG WITH CUSTOMIZED VACATIONS OPTIONS. FOR LOW-INCOME GROUPS LOYALTY PROGRAMS IS A TOP PRIORITY.What would get you to consider going on a cruise?



Better dining options

Low Income

78%

78%

76%

Ability to manage my vacation in real-time via a mobile device /Ability to book to the time of vacation: ability to receive notifications on improvements or changes I can make to my reservation

A loyalty program with great offers and discount


Middle Income

87%

85%

83%

Availability of advanced in-room technology /customize my vacation options at the time of booking / discounts



High Income

Experience, Technology and CustomizationDiscounts and Better dining Discounts and Experience


03

02

01

03

02

01

03

02

01


DEMOGRAPHICS

GENDERAGE

COUNTRY



54% 46%

China

USA

France

UK

Japan

20%

20%

20%

20%

20%

51+

39% 41% 20%

18-34 35-50

PRIVATE ACCOMMODATIONFINDINGS

31%

17%

14%

9%

10%

19%

43%

37%

37%

25%

22%

29%

26%

46%

49%

67%

69%

52%

3-Exclusively 2 - Usually 1 - Never


HOTELS ARE THE EXCLUSIVE OPTION FOR A THIRD OF BUSINESS TRAVEL, BUT CHINESE TRAVELERS ARE SIGNIFICANTLY MORE LIKELY TO EXCLUSIVELY STAY IN A B&B OR WITH FRIENDS AND FAMILYTo what extent do you consider each of the following accommodations when planning a business trip?

Traditional hotel room or suite

Private house accommodations

Private condo accommodations

Bed and Breakfast

Stay with friends or family

Other

BusinessTravels

Base: Total sample, 2500 respondents

Japan 39%

«Exclusively» Top Countries %

China 38%

China 24%

USA 18%

USA 18%

31%

19%

18%

12%

11%

25%

53%

51%

46%

33%

33%

39%

16%

30%

36%

56%

57%

37%

3-Exclusively 2 - Usually 1 - Never


THE SAME IS TRUE FOR LEISURE TRAVEL AS CHINESE TRAVELERS CHOOSE TO STAY WITH FRIENDS AND FAMILY AND MUCH MORE LIKELY TO SELECT A B&B OPTION FOR LEISURE TRAVELTo what extent do you consider each of the following accommodations when planning a leisure trip?

Japan 48%

China 38%

China 36%

USA 23%

USA 19%

Traditional hotel room or suite

Private house accommodations

Private condo accommodations

Bed and Breakfast

Stay with friends or family

Other

«Exclusively» Top Countries %

LeisureTravels



FOR MOST TRAVELERS GLOBALLY, PRICE IS THE MOST IMPORTANT FACTOR LEADING TO A CONSIDERATION OF PRIVATE ACCOMMODATION, BUT CHINESE TRAVELERS PLACE FAR LESS IMPORTANCE ON COSTWhat would get you to consider a private accommodation (private house, private condo, etc.) when deciding on where you will stay while traveling?

29%Better Pricing

14%The location of private accommodations are more appealing

The unique experience of a private accommodation

10%

What would get you to consider private accommodation?

37%

16%

Highest

Lowest

Japan

China

Chinese travelers are half as likely to say price drives their choice for private accommodation -- instead they are motivated by the opportunity for unique experiences.

18%

11%

Highest

Lowest

Japan

China

16%

4%

Highest

Lowest

China

France



CHINESE TRAVELERS ARE ALSO NOT LED BY PRICE WHEN IT COMES TO THE SELECTION OF PRIVATE ACCOMMODATION

What most drives your decision to select private accommodations (private house, private condo, etc.) when deciding on where you will stay while traveling?

21%Better Pricing

14%The location of private accommodations are more appealing

The unique experience of a private accommodation

13%

What drives the decision to stay in a private accommodation?

34%

14%

Highest

Lowest

France

China

24%

9%

Highest

Lowest

Japan

China

18%

5%

Highest

Lowest

US

France


US


UNDER HALF OF TRAVELERS STUDIED STAYED IN A PRIVATE ACCOMMODATION IN THE LAST 6 MONTHS -- CHINESE TRAVELERS WERE OVER 40% MORE LIKELY TO SELECT PRIVATE ACCOMMODATION*Have you ever made the decision to book a stay at a private accommodation (i.e., condo, home, beach-house, etc.) instead of a traditional hotel in the last 6 months?

41%

YesChina 59%

USA 49%

France 47%

UK 31%

Japan 19%

Yes

* It is possible that Chinese travelers consider staying with friends and family a private accommodation – so these results should be received with caution given potential ambiguity in interpretation by Chinese travelers

40%


Gen X

Greatest Generation

Age

39% 61% 48%

Gen z Millennial

25%


16%

Silent Generation

17%


DEMOGRAPHICS

57% 43%

Gen X

Greatest Generation

AGE

2% 35% 41%

Gen z Millennial

21%


1%

Silent Generation

0%



China

USA

France

UK

Japan

20%

20%

20%

20%

20%

ACCENTURE

RESEARCHTHANKYOU

Accenture Research Travel Flash Research China Insights€¦ · TRAVEL FLASH RESEARCH CHINA...

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Transcript of Accenture Research Travel Flash Research China Insights€¦ · TRAVEL FLASH RESEARCH CHINA...