Tag: china

Briefing: Ctrip and OTAs globally

Posted on by Guy Lean

In January Ctrip invested US$180m in MakeMyTrip Limited, India’s largest online travel company and also entered the UK market by buying a majority stake in Travelfusion, a UK-based meta-search website.

The words OTA and disruption have almost become synonymous in the hospitality industry. Ctrip is a major OTA in China and is now making an impact across the globe. Ctrip’s pricing methods are also relevant to rate parity discussions across the industry.

In these videos experts discuss Ctrip and the OTAs’ disruptive potential across the globe.

Constant deals and consolidation in the OTA market means that the powerful are getting more powerful, and as discussed above rate parity is not yet an issue the industry has put to bed.

Ctrip was launched in 1999. It’s net revenue for 2015 was US$1.7 bn. Accommodation reservation revenues increased 44% year-on-year, reaching US$713 m, and transportation ticketing revenues increased 51% year-on-year, reaching US$688m.

Ctrip’s agreement with MakemyTrip means that it “may beneficially own up to 26.6% of MakeMyTrip’s outstanding shares. Upon completion of the investment, Ctrip will acquire the right to appoint a director to the MakeMyTrip board of directors.”

Ctrip claim that its relationship with Travel fusion will “enhance the efficiency and effectiveness of [Ctrip’s] IT system by leveraging Travelfusion’s advanced technology” as well as “further extending [Ctrip’s] leadership in China’s international travel market”

Last Year Ctrip also acquired a stake costing $400m in eLong, its rival OTA in China.

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Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Hospitality and tourism drive luxury consumption

Posted on by Guy Lean

The latest edition of the Bain Luxury Study has found that the overall luxury market exceeded €850 billion in 2014 and showed a growth of 7% overall. The report says that luxury hospitality (9%) was driving this growth, along with luxury cars (10%).

The worldwide market study states that: ‘The luxury-goods industry in most markets is now driven by touristic spending.’ It says that many tourists are willing to spend more when abroad than at home, and that this is particularly true of Chinese tourists who spend three times more when abroad. It is interesting to note that in 2014 luxury spending within China showed a negative trend of 1% growth for the first time since the study has been published. However, the consumer segment which report calls the ‘upper-middle-class “wannabe”’ in China is expected to double by 2017.

In this briefing experts discuss luxury brands and consumer behaviour worldwide:

In the hospitality market, luxury hotels have had steady growth (up 9%). According to the report it is ‘younger generations seeking superior lifestyle experiences’, who have helped to fuel 5% growth in the cruise market.

Research by the Travel Leaders Group found Luxury hospitality bookings in the U.S are going strong. The survey states that 92% of luxury oriented travel agents had increased or steady bookings in 2014.

The Affluence & Wealth Survey by Time Inc. and YouGov sheds some light on the luxury consumer. In a survey of high earning individuals (predominately American), 78% of people said they enjoy being treated like a VIP. 73% said they worry less about money while on holiday.

So how can brands appeal to luxury consumers? The Affluence & Wealth Survey found that 82% of people prefer brands that reflect their values, and 82% prefer brands that stay true to their history and heritage. There is also a strong use of mobile devices among luxury consumers. According to Criteo, 33% of Fashion and Luxury Transactions are on mobile.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: China’s ground-breaking demand

Posted on by HPG Advisory

The unrelenting growth of all industries in China is too much to ignore for the big hotel brands. Entering this market isn’t as simple as cut and pasting Western philosophies into the new cities. Strategic alliances need to be sought and alternative business techniques understood.

Of paramount importance is capitalising on a fast-growth market. Whether that be creating new brands or twisting existing ones, many brands are attempting to be malleable in this Chinese market.

In this briefing we hear from key experts on their thoughts about China. Including:

  • Ed Fuller, former President and Managing Director of Marriott International on the unprecedented growth in hotel development.
  • Yann Caillère, COO of Accor Hotels, on Accor’s strategy for tackling the Chinese market
  • Chris Boulton, CEO of yoo on demand for hotels, particularly branded ones.
  • And James Chappell, of Horwath HTL, on a different development perspective in Asia.

If you’ve been sent to this page but you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do so here. It’s free.

Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interviews from industry conferences such as the most recent IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Dragon breathing fire on Chinese market

Posted on by HPG Advisory

The emergence of China as a dominant global player is no secret. Capitalizing on this new opportunity is something which many hospitality brands have been looking to tackle for some time.

Many questions have arisen due to the assumption that Western products will appeal to Chinese consumers. This is not the case. In this briefing we hear from key executives on tackling this exciting and growing marketplace, including:

  • Taleb Rifai, Secretary-General of the World Trade Organisation (UNWTO), on the wrong perception of the Chinese market but the opportunity that lies there
  • Ed Fuller, Former President & CEO of Marriott International, on the markets that the brand are looking to enter
  • David Scowsill, President & CEO of the WTTC, on the growth seen in China
  • And Yann Caillère, COO of Accor Hotels on appealing to the Chinese consumer.
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