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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
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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
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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
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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.
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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]
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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
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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
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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
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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
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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)
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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.
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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
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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.
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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
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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
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2014 SALES GUIDE
Useful Links
Leading Extranet
The Leading Hotels of the World - Extranet
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2014 SALES GUIDE