Little Big 10: Trends Changing Travel in Asia€¦ · Travel Agencies’ Business in Japan -...
Transcript of Little Big 10: Trends Changing Travel in Asia€¦ · Travel Agencies’ Business in Japan -...
Little Big 10: Trends
Changing Travel in Asia
Asia will become a major source of tourists with 1 billion Asian travelers by 2030
Source: Winning the next Billion Asian Travelers – Starting with China, The Boston Consulting Group / TripAdvisor co-brand report, December 2013.
China will account for >60% of the opportunity
*Others includes Philippines, Vietnam, Hong Kong and Singapore; Note: Population figures exclude individuals under the age of 15 Source: Euromonitor, BCG analysis
(Mill
ion
s o
f p
eop
le w
ith
an
nu
al in
com
e >$
15
k U
SD)
Source: Winning the next Billion Asian Travelers – Starting with China, The Boston Consulting Group / TripAdvisor co-brand report, December 2013.
0
100
200
300
400
500
600
700
800
China Japan India South Korea
Indonesia Taiwan Thailand Malaysia Other*
2013 2020 2030
80
250
700
2013 2020 2030
China outbound travel spend will reach 250Bn in 6 years
China Travel Market money spent on travel (in US$ Billion)
1750 total
711 total
260 total
Outbound travel
Domestic travel
Source: Winning the next Billion Asian Travelers – Starting with China, The Boston Consulting Group / TripAdvisor co-brand report, December 2013.
What destinations are Chinese travellers dreaming of?
Next trip
Maldives
Japan
Taiwan
Korea
Thailand
Singapore
Hongkong
Australia
France
US
UK
Italy
New Zealand
Malaysia
Spain
Source: Winning the next Billion Asian Travelers – Starting with China, The Boston Consulting Group / TripAdvisor co-brand report, December 2013.
Maldives
Japan
Singapore
Australia
France
US
What destinations are Chinese travellers dreaming of?
Next 5–10 years
UK
Greece
Italy
New Zealand
Canada Germany
Switzerland
Egypt Taiwan
Source: Winning the next Billion Asian Travelers – Starting with China, The Boston Consulting Group / TripAdvisor co-brand report, December 2013.
Between 2010 and 2020, the
number of Chinese travellers
to the EU will grow by 5x
Source: Winning the next Billion Asian Travelers – Starting with China, The Boston Consulting Group / TripAdvisor co-brand report, December 2013.
China to account for ~20% of inbound trips to EU* by 2020
*Asia excl. Japan and Korea; Source: WTO (World Tourism Organization); WTTC (World Travel and Tourism Council), Euromonitor; BCG analysis
North America
EU
China arrivals as % of total arrivals
China arrivals as % of total excluding intra-region trips
Source: Winning the next Billion Asian Travelers – Starting with China, The Boston Consulting Group / TripAdvisor co-brand report, December 2013.
1% 2% 5%
19%
2010 2020 1%
3% 3%
9%
2010 2020
Winning Chinese Travellers
Source: Winning the next Billion Asian Travelers – Starting with China, The Boston Consulting Group, December 2013.
Top 4 cities account for <30% of outbound travellers
The 4 mega cities
Beijing, Shenzhen, Shanghai,
Guangzhou account for only
27% of traffic
(Roughly 300) account for the
remaining 73% and show growth
of 2–3x that of the mega cities
The other cities
China unique visitors to TripAdvisor
for outbound travel
Source: Winning the next Billion Asian Travelers – Starting with China, The Boston Consulting Group / TripAdvisor co-brand report, December 2013.
Where are Chinese travellers willing to spend more?
Dining
70%
57%
Shopping Entertainment
43%
Hotel
54%
Airline
16%
Source: Winning the next Billion Asian Travelers – Starting with China, The Boston Consulting Group / TripAdvisor co-brand report, December 2013.
What would make their hotel stay more enjoyable?
Wi-fi Air-con Menu with pictures
City map or travel-related brochures
Chinese-speaking staff
Cash machine that accepts UnionPay card
Chinese & Western-style breakfast
Free airport pick-up/drop-off
Kettle
中文服务
Source: Winning the next Billion Asian Travelers – Starting with China, The Boston Consulting Group / TripAdvisor co-brand report, December 2013.
For more info….
Download report for free at
www.bcgperspectives.com
1. Mobile Dominates Asia
14
15
Google Search Queries for
Travel Related Keywords on Smartphones
18.6%
by Google Japan
– Jul-Dec 2013
Germany
16
Google Search Queries for
Travel Related Keywords on Smartphones
30.0%
by Google Japan
– Jul-Dec 2013
Indonesia
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Google Search Queries for
Travel Related Keywords on Smartphones
55.2%
by Google Japan
– Jul-Dec 2013
Japan
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Google Search Queries for
Travel Related Keywords by Devices
by Google Japan
– Jul-Dec 2013
56.0%
40.0%40.9%
59.0%73.7%
61.5%57.5%71.5%
55.9%
34.8%55.2%55.2%
28.7%
23.2%
30.0%25.4%
18.6%
32.6%
9.2% 4.8% 3.9%12.3%
3.1% 8.5%17.0%
9.9% 11.5%
Tablets
Smartphones
PCs
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Growth of Smartphone Queries, 1H vs 2H in 2013
by Google Search Queries for Travel Related Keywords
by Google Japan
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Jan-Jun
Jul-Dec
+ 3.5
+ 3.3
+ 6.7
+ 7.7
+ 11.2
Traffic on Travel.jp + Hotel.jp
by Travel.jp, Hotel.jp 20
Jan
Feb
Ma
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Ap
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Ma
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Jun
Jul
Au
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Sep
Oct
No
v
De
c
Jan
Feb
Ma
r
Ap
r
Ma
y
Jun
Jul
Au
g
Sep
Oct
No
v
De
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Jan
Feb
Ma
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Ap
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Ma
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Jun
Jul
Au
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Sep
Jan 2011 Sep 2013
Threefold YoY increase via smartphones
Over 40% of All Traffic via smartphones
2. Legacy in Asia
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Rank Companies
1 JTB 9,082 M
2 Hankyu Travel 3,874 M
3 NTA 3,870 M
4 HIS 3,784 M
5 Recruit Holdings * 3,300 M
6 KNT 3,278 M
7 Rakuten Travel 3,275 M
8 JTB-Syutoken 3,200 M
9 JTB-Worldvacations 2,478 M
10 ANA sales 2,035 M
11 JTB-West 1,914 M
12 JALPAK 1,690 M
13 Club Tourism 1,530 M
14 JTB-Corporate Sales 1,495 M
15 i.JTB 1,305 M
16 JTB-Chubu 1,246 M
17 JTB-Kyusyu 1,077 M
18 KNT-Individual Tour Sales 970 M
19 Meitetsu 893 M
20 JTB-Kanto 833 M
Gross Sales (US$)
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Top Travel Agencies in Japan
- Gross Sales Volume 2012
by Ministry of Land, Infrastructure,Transport and Tourism, Japan
* estimate data (USD/JPY 100.0)
Pure OTA
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Travel Agencies’ Business in Japan
- Breakdown of 1st category agents(*) Gross Sales (2011)
by Japan Association of Travel Agents
(*)1st Category Travel Agents : Companies that organize and sell overseas and domestic tours, and also make travel arrangements for the clients as agents.
Domestic (Overnight)Trip
Overseas Trip
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Breakdown on Travel.jp + Hotel.jp
by Travel.jp, Hotel.jp, 2013 data
Lead Generations
Packages Flights Hotels
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Search Queries
in Vacation Packages Category
by Flocations’ data
47%
Gross Bookings in APAC Tour Packages 45B
Hotels 153B
Q3 2013 in Indonesia
3. Diversified Customers in Asia
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Median Age of The Total Population (2010)
by United Nations
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Diversified Customers
Young Inexperienced Guided Tour Packages Sightseeing Shopping : :
Senior Experienced
Non-Guided Tour Packages Spas
Entertainment Gourmets
: :
29
Travel.jp User Profile
30
Diversified Interests
Girls party plans
Spas
Private Outdoor bath
4 hours stay
@keishibata
Follow Me On Twitter
Instagen. [in-stuh-jen] 1.The ‘instagram-able’ generation: digitally-savvy people who constantly share personal details and experiences with words, abbreviations, #hashtags, emoticons, photos, and videos primarily with a smartphone or tablet device; not scoped by age, gender, nationalities, sexual orientation, income level, or education.
2.The most influential consumers to have ever roamed Earth; people who will make or break your brand.
INSTAGEN SEGMENTS
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Marie: Gen Y Frontierswoman;
ditched Facebook, Instagram
rules, about to SnapChat
Ivan: Mainstream Gen Y; he’s on
all the social and mobile
platforms but WeChat rules him
Morris: Gen X Connoisseur;
tech-background, quick to
browse/experiment but slow to
share
Rob: Mainstream Gen X; no-
tech background, on Facebook
and Instagram; little content
Don: Boomer Arbiter; tech
background, categorizes new
services, still mostly on emails
Hilary: Mainstream Boomer; no-
tech background, discriminate
about services to use
Rich SOCIAL MEDIA GROWING FAST
Source: Frank N Magid Associates, n=2K, 2013 34
• September 11: Destabilized sense of security
• China as a New Global Super Power: Altered global competition
• Global Financial Crisis, 2008+: Destabilized financial security
• High Unemployment Levels: Destabilized career optimism
• Potential Fiscal Debt Challenges: Rise in need to depend on selves
• Cheap/Available Computing: 24x7 global access to loads of stuff,
including shared goods
• New ‘Geek’ Entrepreneur Heroes: Positivity towards technology and
lack of privacy
• Social Connectivity: Able to find/share/create/provide + get feedback
• Rise in Value of Social/Virtual vs. Financial/Physical Currency:
Shortened expectation on time to gratification/recognition
Formative Events For The Generation
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Big Data 1.Big Data is the term for a collection of data sets so large and complex that it becomes difficult to process using on-hand database management tools or traditional data processing applications.
2.Where competitive advantage exists, if you can discover them.
Data Creating New Opportunities
Source: Waze, Jawbone, Yelp 37
Each Generation: More Data
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1st Generation Wearables are Here
Source: MIT, KPCB 39
Sharing Economy 1.The Sharing Economy is an economic system built around the sharing of human and physical assets. These systems take a variety of forms but all leverage information technology to empower individuals, corporations, non-profits and government with information that enables distribution, sharing and reuse of excess capacity in goods and services.
2.Potentially, the biggest disruptor to the travel industry.
Rise of instagram and snapchat
Source: KPCB 41
100 Hours of Video uploaded/min.
Source: YouTube 42
Sharing Economy INNOVATIONS
43
Sharers are in Emerging Markets
*Source: Ipsos OTX, n=12,000, 2013 44