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Behind the changes is the fact that Chinese travelers made
107 million outbound trips in 2014, according to the China National
Tourism Administration. The United Nations World Tourism Organization
reported that these travelers spent a record US$165 billion the
same year, making them the world’s biggest spenders and the world’s
largest outbound tourism market.
With a total population of 1.4 billion and 25 percent of that popula-
tion attaining middle-class status, “It’s a $300 billion market waiting to
happen,” says Dom Albanese, Marriott Vacations Worldwide regional
vice president of marketing, sales, and service for Asia/Pacific.
“Already, we’re seeing great results from limited efforts.”
The Welcome Mat
Anantara Vacation Club is also investing in this market. The company’s
sales center in Phuket, Thailand, as well as new preview centers in
Shanghai and Sanya, China, has staff fluent in Mandarin. Customer
call centers in Shanghai and Bangkok have the capability to serve
customers in nine different languages, including Mandarin. “About 50
percent of owners that purchased in the last 18 months are from
China,” says Martin Tolan, chief operating officer. “We think the
Chinese consumer is going to be a big part of future business.”
Both companies are on the right track for success, says Joe
Hickman, vice president and executive director, Asia/Pacific, at Interval
International. “You have to make that commitment and hire salespeople
who speak Mandarin. You have to produce sales materials and
contracts in their language,” he advises.
The resort experience will also need to change. “Cultures and travel
preferences, all of these need to be taken into consideration,” says Jan
Freitag, senior vice president of hospitality industry research firm STR.
“Chinese travelers need staff that speaks their language, and maps and
destination information also in their language. On the food and bever-
age side, they’ll have the expectation of getting their own food on the
breakfast buffet.” (Apparently, fried savory dumplings are key.)
Because the Chinese are often family-oriented, the apartment-
type setup of timeshare accommodations is a natural fit. “They often
have three generations living together,” Tolan says. “On vacation, rather
than renting three hotel rooms, they all can stay together in one unit. It
reinforces the sense of unity and family values. They’re not used to
getting that, so when they walk into our villas, they really love the prod-
uct for the convenience and privacy it provides.”
When it comes to vacation activities, they won’t be relaxing on the
beach. “In Thailand, elephant tracking is popular,” Tolan says. “When they
go the beach or pool, they go to swim. What they really want to do is
experience the destination, not get a tan.”
Social Media and Brand Consciousness
Just as in the U.S., younger Chinese consumers are Internet-savvy and
active on social media. “They’re interested in what people like them have
to say about the product,” Kane-Hanan says. “They’re also very brand-
conscious, which is good for us.”
That brand consciousness works for Anantara, too, as the company
uses affinity marketing to reach Chinese consumers. “We offer unique
experiences in partnership with luxury lifestyle and financial brands,”
Tolan says. In-house marketing at the company’s resorts and nearby
hotels is also done.
Another factor shaping the Chinese travel market is the popularity
of international education. According to the Ministry of Education of
the People’s Republic of China, approximately 460,000 students from
China are studying abroad each year. “Many young executives have
been educated in the West, so they speak English well and want to
travel. We’re seeing the rise of the free and independent traveler,”
Albanese says.
Currently, it seems most sales to Chinese nationals are happening
in Asia, but eventually that may change as their numbers grow in top
international destinations. In Dubai, Al Mohannad Sharafuddin, CEO
and chairman of Arabian Falcon Holidays, says the number of
21
Chinese travelers made 107 million
outbound trips in 2014, according to the
China National Tourism Administration. The
United Nations World Tourism Organization
reported that these travelers spent a record
US$165 billion the same year, making them
the world’s biggest spenders and the
world’s largest outbound tourism market.
Jeff Gilbert/Alamy; Robert Fried/Alamy
At Marriott Vacations Worldwide, the information technology structure is changing.
“We have to make sure our systems are ready for different [typographic] charac-
ters,” explains Lani Kane-Hanan, executive vice president and chief inventory and
growth officer. The vacation ownership powerhouse is also consulting experts in
feng shui about unit design and color palettes.
n
1.4 billion
Population of China in 2015
n
28%
Increase in tourism expenditures in 2014, reaching
a total of US$165 billion, according to the UNWTO
n
US$5,400
Amount the average Chinese tourist spent
during a trip to the U.S., according to Brand USA (21 percent
more than the average for other international tourists)
CHINA BY THE NUMBERS