China
China Message from Fiza Han, Director China Dear Member Hotels: China’s economy expanded rapidly in recent years despite a dire international context, though it slowed in 201112. Rebalancing has made headway: externally, the current account surplus has fallen sharply, from over 10% of GDP in 2007 to under 3%; domestically, growth has lately been pulled more by consumption than by investment. With the slowdown, inflation has been brought under control. More recently, activity has regained momentum, helped by policy easing and a pick-up in infrastructure spending, but the global economic context remains fragile. If needed, there is room for further cautious monetary and fiscal stimulus. In a longer-run perspective, China has now overtaken the euro area and is on course to become the world’s largest economy around 2016, after allowing for price differences. Living standards will continue to improve fast provided reforms are implemented. Leading Hotels’ China has performed remarkably well in 2013 generating USD 4.62 million (24% increase) to LHW member hotels. This increase should accelerate with a few LHW new marketing initiatives like the LHW VIP Product Program, the enhancement of the Leaders Club membership with unique experiential packages, the solicitation of potential marketing partners and the Leading Leisure program. We look forward to work closely with all member hotels to generate more business and revenue from all market segments in China. Sincerely, Fiza Han Director, China 1 2014 SALES GUIDE Table of Contents Page Budget 2014 3 Top 10 Outbound Countries & Cities in 2014 3 Groups in 2014 – Total Office 4 Member Hotel Services 5 Sales Team / Shanghai & Beijing 6-7 China Market Overview 8 Corporate / Consortia 8 Travel Trade 9 - 11 MICE 11 - 12 Leaders Club 12 CHINA Events 13 Public Holidays In China - 2014 14 Public Relations (PR) 15 Useful Links 16 2 2014 SALES GUIDE Member Hotel Revenue Target 2014 BUDGET 2014 - BY SEGMENT % of total 2014 Budget CHINA 2014 Budget 2013 Actual Variance Corporate/Consortia USD 844,705 USD 542,309 USD 302,396 Travel Trade USD 1,813,826 USD 1,278,183 Groups USD 1,236,238 USD 1,957,150 Direct Consumer USD 811,747 Leaders Club Total % Change 55.76 % 15.59% USD 535,643 41.91 % 33.49% USD 720,912 - 36.83% 22.82% USD 474,968 USD 336,779 70.91% 14.99% USD 710,129 USD 370,682 USD 339,447 91.57% 13.11% USD 5,416,645 USD 4,623,292 USD 793,353 17.16% 100% Top 10 Booked Outbound Countries In 2013 CHINA Destination country TAIWAN SWITZERLAND UNITED STATES ITALY UNITED KINGDOM FRANCE GERMANY SWEDEN MONACO JAPAN TOP 10 COUNTRIES TOTAL GRAND TOTAL OFFICE REVENUE Total Revenue 2013 USD 1,056,441 USD 537,280 USD 403,171 USD 314,505 USD 277,514 USD 273,415 USD 162,348 USD 138,927 USD 137,098 USD 127,724 USD 3,482,423 USD 4,623,292 % of total office revenue 22.85% 11.62% 8.72% 6.80% 6.00% 5.91% 3.51% 3.00% 2.97% 2.76% 74.16% 100 % Total Revenue 2013 USD 1,056,441 USD 261,758 USD 251,518 USD 237,330 USD 203,654 USD 138,927 USD 137,098 USD 120,481 USD 98,904 USD 81,540 USD 2,587,651 USD 4,623,292 % of total office revenue 22.85% 5.66% 5.44% 5.13% 4.40% 3.00% 2.97% 2.61% 2.14% 1.76% 55.97 % 100 % Top 10 Booked Outbound Cities In 2013 CHINA Destination city TAIPEI LONDON ZURICH HONOLULU PARIS STOCKHOLM MONTE CARLO TOKYO ROME SOUTH MALE ATOLL TOP 10 CITIES TOTAL GRAND TOTAL OFFICE REVENUE 3 2014 SALES GUIDE GROUPS in 2014 – Shanghai & Beijing NUMBER OF GROUPS TOTAL REVENUE TOTAL ROOM NIGHTS AVERAGE GROUP VALUE AVERAGE RATE 85 USD 1,957,150 5,541 USD 23,025 USD 353 Lead time: Groups up to 30 rooms – from 20 days up to 90 days prior to arrival. Groups up to 80 rooms – from 30 days up to 180 days prior to arrival. Groups above 80 rooms – from 30 days up to 360 days, and beyond prior to arrival. 4 2014 SALES GUIDE Member Hotel Services The Shanghai sales team provides a range of services on behalf of our hotels. On the following pages you will find an introduction to the specialist team members, their areas of responsibility, an update on the latest trends and priorities for 2014, and the services that this office provides. Also included is an overview of our corporate rate program via Leading Advantage, our events and sales missions, as well as how to communicate to our database. Along with the information that you will find on the following pages, we also provide the following services: Office presentations: We encourage you to visit the Shanghai office for presentations to the staff. The sales presentation should be one session lasting a maximum of 30 minutes, to include questions and answers time. Please allow a minimum of three weeks’ notice to book your presentation time in order to ensure maximum participation. Sales calls assistance: The Shanghai office is able to provide, upon request, detailed contact lists or arrange client appointments with top accounts from major markets. To have sales visits arranged, please contact the Shanghai office in writing with a minimum of four weeks’ notice, however no more than three months out. A minimum of three and a maximum of 4 sales appointments per day can be arranged, with a maximum of two days per annum, per hotel. Kindly note that no appointments will be arranged one month before and after our annual Showcase, in order to avoid a conflict of interest and a dilution of impact. China Showcase 2014 LHW China will have its annual Showcase on 30 May, 2014 in Beijing and 5 & 6 June, 2014 in Shanghai. Please contact Rita Zhang to organize your visit at: [email protected] 5 2014 SALES GUIDE Sales Team - Shanghai Candy Chen Senior Manager, Sales E-mail: [email protected] Direct Tel: +86 21 6279 8956 Mobile: +86 139 1671 2833 Candy is based in Shanghai office and is responsible for Leisure FIT & Groups and Corporate accounts (Government, Auto Industry, Technology and Education) in Southeastern China Michael Xu Senior Manager, Sales E-mail: [email protected] Direct Tel: +86 21 6279 8957 Mobile: +86 156 1896 6255 Michael is based in Shanghai office and is responsible for MICE group, Leisure FIT and Corporate accounts (Financial Institution, Luxury Brand, Consulting and Pharmaceutical) in Southeastern China Vincent Wang Coordinator, Sales E-mail: [email protected] Direct Tel: +86 21 6279 8968 Mobile: +86 13918831849 6 2014 SALES GUIDE Sales Team - Beijing Yina Mao Associate Director, Sales, North China E-mail: [email protected] Direct Tel: +86-10 5123 5096 Mobile: +86 139 1007 3032 Yina is based in Beijing office and is responsible for all market segment in Northern China. TBA Manager, Sales E-mail: Direct Tel: Mobile: Position is current vacant 7 2014 SALES GUIDE China Market Overview China's economic growth rate is forecast to drop from 9-10 percent in the Eleventh Five year plan to 7-8 percent in the Twelfth Five year plan. Over the past two years, although China’s economic growth rate has slowed down; there has been no significant decline in domestic employment. It is estimated that under current circumstances, the growth rate of China's economy can continue around 7.5 percent. GDP growth in 2014 is expected to be slightly better than in 2013, remaining within a reasonable range of 7.5-8 percent, initially estimated at about 7.8 percent China outbound tourisms evidenced dramatic increasing in the past few years and it will keep growing in 2014 In 2012, 83.2 million border-crossings from Mainland China have been recorded, an increase of around 20% compared to 2011. By the end of 2013 the figure is estimated to continue to rise by almost 15% compared to 2012. China overtook Germany and the USA in terms of numbers of travelers and spending to become the new number one global outbound tourism source market. A combination of China’s fast-emerging middle class, improved transportation links and more favorable policies are all contributing to the boom of outbound tourism. China's first tourism law, aiming to upgrade the country's tourism industry, has caused travel agencies to raise prices, spurring more Chinese to become independent. The “New Chinese Tourists” are travel-savvy, welleducated and mostly under 45 years of age. They do not follow the typical pattern of rushed trips to as many famous destinations as possible, but slow down and develop more interest in specific regions and activities. Corporate / Consortia The corporate travel trade throughout the region is dominated by larger consortia firms, namely American Express, HRG, Carlson Wagonlit Travel, and BCD Travel representing between them approximately 80% of business from the various countries in our region. Generally, the volume of business delivered by these large consortia agencies is driven by key financial institution clients along with electronic, manufacturing, IT with preferred corporate hotel program. Corporate travel has been slow down over the past years as many corporations has selected lower category hotels due to price sensitivity. Meanwhile, AMEX report has been consistently indicating that over 75% of China business traffics are consumed in the domestic market. A majority of the MNC corporations in China are sub-branches which the Travel Managers makes decisions of the hotel travel program only within China. We are influencing the respective decision makers in order to receive a Global RFP invite through local office in the same time targeting the key global accounts where the decision makers based in China to ensure our hotels are included in global hotel program. In order to maximum the business volume and strengthen hotel exposure in the market, we encourage hotel conduct presentation to TMC companies whenever they are in town for sales mission or exhibitions. Corporate rates not negotiated through Leading Hotels If you have negotiated any rates directly with corporate companies, please be aware that unless these rates are loaded in the GDS, you will not see the maximum benefit of your negotiation. It is always beneficial if the Account Manager Corporate at the China office is kept informed of these negotiations. If an agent is unable to access the rate in the GDS, Leading Hotels are always contacted by the travel agent for assistance 8 2014 SALES GUIDE Travel Trade Chinese tourism industry has emerged as a new growth avenue with increasing purchasing power, rapid economic liberalization, and favorable government policies. These developments and reforms have taken the tourism industry to new heights and introduced multistage transformations that not only attract tourists from within the country, but from overseas countries as well. According to “China Tourism Industry Forecast to 2014”, the domestic and outbound tourism segments have witnessed positive growth, despite economic slowdown and changing industry landscape. Besides, the Chinese government has taken various initiatives, such as bilateral agreements with neighboring countries, granting Approved Destination Status, easing VISA norms, tourism promotion, branding and positioning of China as a tourism hub, cultural promotion, golden weeks etc, to boost the tourism industry Chinese high net worth individuals tend to rely on travel agencies in China for outbound travel arrangements because of visa application and language barrier while travelling overseas and the preference of pre- payment. LHW China has created VIP product program in 2013 to help member hotels develop and manage direct business relationships with luxury retail travel agencies in China. A number of hotels have been enjoying the benefit from participation of this program. We encourage hotels that are located on top 10 china outbound destinations however yet to participate VIP product program take consideration to be included in 2014 VIP Product for LHW’s network of luxury retail travel agencies in China Background • • Chinese high net worth individuals tend to rely on travel agencies in China for travel arrangements because of : - visa application (required by most countries) - language barriers when travelling overseas (and hence will need airport transfers and personal travel guides) - the habit/preference for cash payment Travel agencies in China (and actually most of Asia) tend to book through wholesalers for the following reasons : - Lower rates as these wholesalers blatantly undercut hotels’ retail rates - Immediate commission payment by the wholesalers (compared to buying commissionable retail rates where the commission is paid later; plus the cost of banking in the commission cheque usually exceed the value of the cheque) - Credit facility extended by the wholesalers (who in turn receive credit from member hotels) LHW’s strategy to grow the luxury retail travel segment • • Create a network of luxury retail travel agencies in China to help member hotels : - reduce dependency on low yield wholesalers - develop & manage direct business relationships with luxury retail travel agencies Offer this network of luxury retail travel agencies a ‘VIP Product’ so that : - their high net worth customers have a great experience at LHW member hotels - the luxury retail travel agencies impress their high net worth customers 9 2014 SALES GUIDE ‘VIP Product’ Offering This ‘VIP Product’ offering that we have created has a room rate product and a guest services aspect to it: • • Room Rate Product : - Breakfast (for 2) inclusive net rate that includes taxes and service charge and excludes standard commission (however, depending on the rates offered by wholesalers in China, we may recommend a lower rate). - Room rates to be prepaid prior to arrival (usual cancellation/no-show policy will apply) - Room upgrade (subject to availability) - For a mini-group of 5 to 9 rooms, guaranteed room upgrade for one room. - Early check-in/late check-out (subject to availability) - In-room check-in : Junior suite & suite room booking - 1 RN FOC to travel agency for every 25 RN consumed at the same hotel (to incentivize volume instead of giving upfront discount) - Optional : airport meet & greet and transfers (in Chinese) Guest Services : - Chinese speaking staff (not necessarily front desk staff) - Chinese Language newspaper : popular newspaper include : China Daily, Guangzhou Daily, Beijing Evening News and Xiamen Evening News (Highly recommended) - Chinese TV channels (CCTV 4 & CCTV 9 ) - Rooming to be done in Chinese language - In-room amenity : - - Welcome note on behalf of travel agency and LHW Welcome amenity : fruit basket & bottle of wine Hot water flask & selection of Chinese tea (Chrysanthemum, Jasmine, Long Jing, Pu Er) Dental Kit, Mouth Rinse, Shaving Kit and Comb Slipper Power point adaptor Welcome pack (all in Chinese) for the guest : Welcome letter from hotel GM Mention availability of Chinese speaking staff (not mandatory) Room facility guide Directory of services Room service menu Spa menu List of recommended activities in the city City map SIM Cards (can be available at Concierge desk) 10 2014 SALES GUIDE • • Food and Beverage - List of authentic Chinese restaurants in the neighborhood & city - Selection of authentic classical Chinese breakfast items including Dim Sum and Congee included in the restaurant and In Room Dinning menus (Highly Recommended) - Selection of authentic classical Chinese dishes included in the In Room Dinning, restaurant lunch and dinner menus (Highly Recommended) - Chinese ‘Cup Noodle’ Snacks in the mini bar (Highly Recommended) - Chop sticks (for room service & restaurants) Payment - China Union Pay credit card acceptance (for payment of hotel incidentals; since room rate will be prepaid) If you are interested to participate China VIP Product Program, Please contact Ms. Rita Zhang at [email protected] or via office telephone: +86 21 6279 8951 MICE China team is jointly responsible for driving corporate and business travel agency revenue to our hotels from the region. This includes transient and MICE business from our corporate clients. We are committed to identifying new opportunities for hotels with existing accounts and we are individually targeted to develop new business from small to medium size high-end corporations. For 2014, one of our main objectives is to convert direct MICE business and to identify new revenue sources from the corporate market which also includes executive assistants and other key travel bookers. In china, the majority of MICE groups are organized via travel agents and event houses because of visa and payment issues. The corporate groups are handled by the company’s in-house events team. Popular MICE destinations in 2013 are America, London, Amsterdam, Barcelona, Munich, and Berlin. Ad hoc group only and destination rotated from one to another. Company incentive trip, government delegate group and management meeting group will still are the key segments for group business. The length of stay and size of government delegates group has been cut to 8-10 days instead of 12-14 days with maximum 5 rooms according to the new policy made by Chinese central government in late 2012. Also potential leisure family groups usually with a size of 4-6 rooms thus special group rate is important to secure the business lead What the MICE agent will need to sell your hotel more effective • • • • • • • • • • • High quality images of accommodations, meeting space or private dining venue Destination information with unique selling points Fast response time with a maximum of 24 hours Flexibility with terms, conditions and contracts (especially to government delegate groups) Direct contact person information with address Accurate proposals Commissionable rates when requested Day delegate rates and what is included Up-to-date floor plans News of any refurbishment plans Visual material, i.e. up-to-date conference collateral, etc. 11 2014 SALES GUIDE Leaders Club With the increasing of the affluent and well-travelled consumer in the luxury segment in China Market, Leaders Club will play more important role in the market. The need for a tailored travel itinerary is key, the personal attention and particular requirements needs to be catered for. To target this audience, we organize several Leaders Club and consumer events during the year with a more lifestyle and experience approach – we encourage our hotels to take part in these activities in order to reach these high-net individuals. We also will exposure partnership marketing opportunity with the selected Chinese Financial Institutions, high-end clubs and high-end car dealers and SCC (Sports Car Club) to target the proper audiences. Some facts and figures 2013 LEADERS CLUB ORIGIN China TOTAL SPEND IN U.S.D. $ 370,682 AVERAGE RESERVATION IN U.S.D. $1,090 Leaders Club Dinner Event to be scheduled in both Beijing and Shanghai To target this segment, we encourage you to familiarize yourself with the program and your opportunities using the following link to the Leading extranet: Leaders Club - Marketing opportunities 12 2014 SALES GUIDE China Events CALENDAR Event name Cities Dates ILTM Showcase Event Beijing May 30, 2014 (Fri) ILTM Asia Shanghai June 2-5 (Mon – Thu) ILTM Showcase Event Shanghai June 5-6, 2014 (Thu – Fri) LHW Appreciation Event Shanghai Nov 5,2014 (Wed) LHW Appreciation Event Beijing Nov 7,2014 (Fri) The China sales team organizes many events throughout our markets, from showcase cocktail receptions, multicity road shows, consumer and trade shows to gala dinners. We will be able to assist you with all your needs to promote your hotel to the travel trade and Leaders Club members. All of our events are highlighted on the Extranet and can be found on the worldwide calendar by visiting www.leadingextranet.com. We urge you to regularly visit this website for updates. Please visit our worldwide Event Calendar for Events 2014 on www.leadingextranet.com. In this section of the Extranet you will find a monthly calendar of events, with detailed information by clicking on the individual event. To see all events on one page please click on the "Year@Glance" option, where you can also sort by date and region. We strongly recommend visiting regularly as event details are constantly up-dated. Importantly please look out for weekly Bulletins from our Corporate Headquarters for each event. 13 2014 SALES GUIDE Public Holidays CHINA 2014 New Year’s Day st 1 January th th 30 January – 6 February Spring Festival th th Qing Ming Festival st rd Labour Day 5 –7 April 1 –3 May st nd June Dragon Boat Festival th th September The Mid-Autumn Festival st th 1 –2 6 –8 National Day 1 – 7 October 14 2014 SALES GUIDE PR – Public Relations The Leading Hotels of the World, Ltd. retains the services of via various PR agencies across the globe, for more information how to maximize your opportunities, visit the Leading Extranet using the following link: LHW Public relations Media • 2014 Global editorial theme calendar, please refer to the Leading Extranet at the following link: LHW Public relations • Target total 25 key Medias from China Market for PR coverage at LHW Corporate and member hotels. Advertisement Campaign • • Brand Image Advertisement of Leaders Club campaign on top travel magazine and the media to target First Class & Business Class customers. Special PR campaign / initiative with Condé Nast Traveler, e,g. Exclusive offers to readers. Familiarization Trip • • Liaison with Tourism Bureau / Airline to organize at least 2 media groups for member hotels visiting in 2014. Key destination countries tourism bureau promotion theme for 2014: - Swaziland: View Switzerland. Launch Swiss Pass (4 days / 8 days train ticket package) to cover the tourism of selected 8 mountains) - Germany: World Heritage - France: Shopping / Wine / Culture Heritage - United Kingdom: Highlighted: Scotland, Yorkshire, Shakespeare - Italy: Expo 2015 at Milan - Germany: World Heritage Social Media • • Sina Weibo / Wechat Public Account / Youku contents maintenance. Key contents to be updated: LHW brand history, LHW News Release, LHW Hotels in the film, LHW promotion, Leaders Club introduction, Leaders Club exclusive offer, interactive with member hotels social media account. Launch special promotion program to increase the number of followers Brand Identify • • • Produce Corporate giveaway for China market Produce Leaders Club brochure for China market 2015 LHW calendar printing 15 2014 SALES GUIDE Useful Links Leading Extranet The Leading Hotels of the World - Extranet 16 2014 SALES GUIDE
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