The Art of Travel

Bridging the Gaps in Chinese Outbound Travel

Posted on: April 17th, 2011 by variarts-admin

Local operators seek solutions at Beijing conference
Beijing—As the world’s destinations, resorts, and other travel providers scramble to market to the fast-growing Chinese outbound travel market, China’s own operators are also in a race to understand how best to link their clients’ needs with a dizzying array of overseas offerings. China’s outbound travel market is projected to grow by 17% each year from now until 2020, according to a Boston Consulting Group study released in March.

To address the gap in understanding, the China Outbound Travel & Tourism Market (COTTM), held last week at Beijing’s China World Exhibition Center, brought together 230 suppliers from 55 countries, and 3,300 Chinese travel buyers for seminars, panel discussions, and an exhibition—all in the interest of building stronger links to serve the unmet needs of travelers in the world’s fastest-growing outbound market. COTTM is organized by Tarsus Group, a London-based exhibition management company.

One well-attended panel discussion on independent, themed and luxury travel, “Catering for the New Chinese Tourist,” made it clear that even many domestic companies which have first-hand contact with well-heeled Chinese travelers find it difficult to deliver the travel experiences that their clients seek. The standing-room crowd of tour operators peppered panelists with questions about creating customized itineraries, navigating relationships with international suppliers and addressing niches like adventure, family, and education travel.

“For the most part, Chinese operators are not familiar with industry practice or the overseas supply chain,” said Lin Xu, founder and CEO of VariArts Travel Group, who fielded most of the questions from the enthusiastic crowd.

Xu encouraged audience members to reevaluate some of their practices, starting with how they guide travelers through the planning process. “We need to rethink our destination focus. The planning process doesn’t start with asking ‘Where do you want to go?’” said Xu. “It starts with asking ‘Why do you want to travel? What do you want to do and who do you want to do it with?’”

A customer-centric approach, added Xu, can help China’s outbound tour operators deliver something they aspire to—luxury. “Luxury is not about staying in the big, brand-name hotel, and spending as much as possible,” said Xu. “It’s about finding the experiences you are looking for.”

Toward the end of the session, the room erupted in applause when one audience member suggested that Chinese tour operators need more frequent and meaningful interaction, in the form of a professional network or association.

“It’s something that we are working on,” said Xu. “We hope to introduce a way soon for Chinese travel professionals to share their challenges and leverage their collective expertise.”