Development Quarterly - Issue 3 IHG Europe's Development, Design & Openings magazine

TRENDS
Enter the Dragon…
The importance of being China Ready
In 2014 the Chinese became the largest nation of outbound travellers globally, overtaking the U.S. and Germany.
Between now and 2020, the number of Chinese travellers is expected to grow to over 150 million*. We look at how
Europe is preparing for this influx of new guests and what IHG ® is doing to welcome this most lucrative of markets.
Between 2000-2010, the Chinese economy tripled in size. It is now
the world’s second largest economy, with only the U.S. standing
in its way of the top spot. More people in its total population of
1.3 billion are enjoying financial security than ever before. And
it’s not just those in the major cities who are influencing this
boom. Tier two and three cities are also driving growth and the
middle classes have expanded massively. The number of Chinese
households earning above $35,000 per annum – identified as
the income level at which international travel becomes more
affordable – rose by 21 million from 2003 to 2013. An additional
61 million households will pass this threshold by 2023.**
With this rise in salary, the average family has disposable income
that was unthinkable only a decade ago. This, coupled with more
relaxed travel restrictions and simplified visa processes, it’s no
wonder the Chinese are flocking to Europe in their millions.
The UK, France and Germany look to benefit the most. According
to ‘The Future of Chinese Travel’, a joint Oxford Economics and IHG
study, London looks set to double the number of Chinese visitors
it receives between 2013 and 2023. That equates to over 60% of all
Chinese arrivals to the UK. France is ranked at number two for top
long-haul arrivals and German cities Munich, Frankfurt and Berlin
feature among the top city nights in Europe with absolute growth of
200,000, 199,000 and 169,000 nights respectively.
The traditional image of the Chinese tourist is one of touring en
masse to the most crowded tourist hotspots. But today, that trend
is changing. Drew Davy, Programme Director of IHG’s China
Outbound project throws some light on why, “It’s not that those
huge bus tours are stopping. They still have a place for first-time
travellers on multi-country tours. But what we’re seeing now is
once they have made that step, their confidence is boosted and
many more people are travelling solo or in smaller groups of
friends and family.”
In fact 71% of Chinese travellers are now choosing independent
travel over the 29% opting for group tours.* In addition to leisure
tourism, the growth of business travel also accounts for an increase
in the number of Chinese travelling solo. This adds to the number
of rooms Chinese guests are booking for individuals, as opposed to
family, friends and partners sharing a room. As a major business
hub, London is estimated to be the largest European market for
Chinese room nights.
This evolution in Chinese traveller comes with its own demands.
Where once it was just the hotels on the tour trails that were versed
in hosting Chinese guests, now more hotels need to be ready to
cater for the growth of this new type of traveller. The industry as a
whole has had to react and earlier this year IHG launched its own
response with the China Ready programme.
Offered across two tiers, China Ready is a self-accreditation
programme that acts as a guarantee to Chinese guests that their
stay will be everything they want it to be. “Being China Ready is
a mark of distinction” Drew points out. “Hotels merited with the
China Ready stamp are so much more likely to attract the Chinese
market and word of mouth is everything. We are also affiliated with
a Chinese government agency called the China Tourism Academy
(CTA), which adds a huge amount of credibility.”
Presented in an Essential and Premium tier, the programme was
devised after extensive research into what Chinese tourists want
from their stay. From the food & beverage (F&B) offering to the
TV channel choices to accepted payment methods. But just as
important as the services is the personal etiquette, something that
both tiers of the programme cover.
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