1 Marketing Analysis Report 2015 TAT Guangzhou Office Responsible areas /markets: Guangdong , Hunan , Jiangxi , Fujian and Hainan Province SECTION 1: Market trends 1.1 Overall Below is the basic information on economic and population of these five provinces in 2013. GDP Rank (from 31 Provinces) Province 1 Guangdong 10 Growth Rate CPI Population 5.7068 8.20% 2.80% 104,303,132 Hunan 2.2154 11.30% 2.50% 65,683,722 12 Fujian 1.9702 11.40% 2.40% 36,894,216 19 Jiangxi 1.2949 11.00% 2.70% 44,567,475 28 Hainan 0.2855 9.10% 3.20% 8,671,518 (Trillion RMB) Guangdong: located at the southern part of China. Its GDP is ranked No. 1 in China in 2013, which means the spending of Cantonese tourists are very strong and potential to be high spending. Generally, the tourists from this Pearl River Delta which includes Guangzhou, Foshan, Shenzhen, Zhongshan, Jiangmen, Dongguan, Zhuhai and Huizhou are wealthy and easily visit to Hong Kong because of connected border. About 60% of them have already visited Thailand. Therefore, this group prefers new destinations and new packages to Thailand. For those who have never visited Thailand are interested in the traditional Thai tour packages; such as, Bangkok-Pattaya, BangkokPhuket, etc. There are about 20% of the tourists are FIT travelers. Regarding outbound , there were 750,000 travelers to Thailand from overall 9,600,000 outbound travelers in 2012. And for 2013 , there were about 940,000 tourists visited Thailand from overall 11,500,000 outbound tourists. Hunan: Located in the southern inland of China. Its GDP is ranked No. 10 in China in 2013. Changsha, Zhuzhou, and Hengyang are the developed industrial cities in this province. The tourists from these three cities are wealthy. Many of them have already visited Thailand by group tour where the popular destination are all beach cities in Thailand . Thus, they would like to visit the new destinations in Thailand as FIT, especially the young generation group. The other provinces apart from these three cities are still not good in term of their economic. Fujian: Located in the southeast coast of China and close to Taiwan . Its GDP is ranked No. 12 in China in 2013. Fujian people usually have their relatives/friends overseas, including Thailand. Regarding the first visit tourists, more than 60% prefer to join tour group due to the language problem. Traditional tourist destinations are Bangkok, Phuket and Pattaya. There are also many of Fujian people who have already visited Thailand as FIT tourists. Their purposes are usually to travel and to visit friends/relatives. Fuzhou and Xiamen are the first tiered cities in Fujian. The people of these two cities are well educated and high potential spending for tourism. More and more of them like to visit new destinations in Thailand, and some local young white collar people prefer to travel as FIT repeaters. Jiangxi: located in the southern inland of China. Its GDP is ranked No. 19 in 2013. There is only new one direct flight to Thailand from Jiangxi by Orient Thai Airline. The tourists from Jiangxi can also go to Thailand via Guangzhou Baiyun Airport or Hong Kong Airport. Nanchang and Jiujiang are the first tiered cities in the province, which are the current targeted market in Jiangxi. Some people from these two cities have visited Thailand as group 2 tourists. The other parts of Jiangxi are still very poor for their economic and many people have not yet traveled abroad. With development of mine resource in Jiangxi, it is believed that this market is pretty potential and should be developed in a few year. Hainan: located at the southernmost island of China. Its GDP is ranked No.28 in China in 2013. Hainan is just a smallest province in China in terms of GDP and population. Due to its tropical climate and many beaches, Hainanese people do not eager to visit the beach and island destinations in Thailand. On the contrary, they are interested in heritage, leisure and sightseeing places. Many Hainanese people have lots of friends/relatives overseas including Thailand, especially Koh Samui. Therefore, they are likely to travel to Thailand as FIT to visit their friends and relatives. Haikou and Sanya are the first tiered cities in the province. Hainan Airlines runs “Haikou-NanningBangkok” route two flights per week. However, most of the local tourists still prefer to visit Thailand via Hong Kong as they can do some shopping in Hong Kong. 1.2 Outbound outlook January and also follow by Chinese New Year for Febuary is the high season for all Chinese including Southern Chinese , both are still very big opportunity for all destination in Thailand. From January to May 2014, The Royal Thai Consulate General in Guangzhou issued 192,000 tourist Visa. The figure was significantly decreased, approximately 30 % decreased . Since, the anti-government demonstration in Bangkok was the major reason coming to the present of the military administration, these negatively affected the travel of Southern Chinese tourists to Thailand when compared with last year. They prefer to travel to the other countries during the peak season and long weakend; such as Korea Japan Cambodia Bali Maldives Philippines etc while USA and Europ still popular for the long hual destinations . Most of them travelled with family or in couple. Volume and growth rate of outbound to Thailand (2013 – 2015) from China: Year Outbound volume (to Thailand) Growth Rate 2013 4.7 million 8% 2014 5.25 million 4.25% 2015 5.78 million 10% Forcast on 2014 and 2015 3 1.3 Airline Information Guangdong: 30% of the tourists from Guangdong to Thailand depart from Guangzhou Baiyun Airport. 35% depart from Hong Kong International Airport whereas 20% depart from Macau Airport and 10% depart from Shantou Airport. The main airline with regular flight from Guangdong to Thailand are China Southern Airline, Thailand Airway, Air Asia and SriLankan Airlines, details are as follow: Guangzhou – Bangkok TG: 2 trips/day/Daily CZ: 3 trips/day/Daily Air Asia: 1 trip/day/Daily Srilankan Airline: 2 trips/day/Daily Hainan: 40% of tourists from Hainan to Thailand depart from Hong Kong International Airport. The other 30% depart from Guangzhou Baiyun Airport whereas 25% depart from Haikou Airport, and 5% depart from other airports. There are one regular flight from Haikou to Bangkok but with one stop in Nanning Wuxu International Airport, details are as follow: Haikou - Bangkok Hainan Airline: 3 trips/week Hunan: 40% of Hunan tourists depart for Thailand from Changsha Airport. The other 30% depart from Hong Kong International Airport whereas 25% depart from Guangzhou Baiyun Airport and the rest ( 5% ) departs from other airports. The main airline with regular flight from Hainan to Thailand are Xiamen Airline and Thai Airline, details are as follow: Changsha – Bangkok CZ: 1 trips/day/ Daily TG: 5 trips/week Air Asia: 1 trips/day/Daily Changsha – Phuket CZ: 3 trips/week Jiangxi: 4 Starting from 1st April, Orient Thai Airline shall launch Nanchang-Bangkok regular flight, 4 flights per week on Tuesday, Thursday, Saturday and Sunday, aircraft will be Boeing 737. Departure time from Nanchang will be 13:20, arrival time in Bangkok will be 17:35. Fujian: The main airline with regular flight from Fujian to Thailand are China Southern Airline, Air Asia and Thai Airway, details are as follow: Xiamen – Bangkok Xiamen Airline: 4 trips/week TG: 4 trips/week Fuzhou – Bangkok Xiamen Airline: 3 trips/week 1.4 Shift in destination preferences Beyond conventional destimation from Bangkok Pattaya Chiangmai Phuket , the chinese market start to shift to around Bangkok such as Ayuthaya Khaoyai Hua-Hin (Cha-Am) and also new provinces like Krabi Trang Surat-thani (Samui) for premium destinations. 1.5 New product preferences Islands, Beach, Golf, Gourmet and Spa are more and more popular. Shopping for “Family and Leisure” groups is still pay an important role for chinese market 1.6 Change in consumer behavior Exclusive tailor made outbound trips are required by high end group. “Selfie” is easily seen on WeChat. The tourists tend to share their experiences on Weibo. Fly low cost, award themselves with good accomodations. 1.7 New/Potential product & destination preferences Family and Leisure: Chiang Mai, Phuket, Nakorn Ratchasima (Khaoyai), Krabi, Samui and Pattaya Young generation and white collar groups: soft adventure (Zipline, Rifle Shooting, ATV, snorkeling, trekking), Thai cuisine - food - fruit (incl organic food & fruit) and shopping OL and executives: beauty – health - wellness incl clean air + healthy food & fruit Golfer: Bangkok and neighboring , Khaoyai , Hua-Hin , Kanchanaburi. Diving group: Moo Koh Similan, Koh Tao, and Koh Chang 5 SECTION 2: SWOT Analysis 2.1 Strengths and Weaknesses of Thailand: Marketing mix (compared to Thailand’s competitors in the market) Strengths Weaknesses Internal environments - Tourism products and - Good service and products - Chinese language inability services (product variety, - Variety - Malpractice of Thai ground agents quality, attractiveness, - Still offer traditional packages with etc.) options - Thailand tourism - Good airports - Poor inter-city connections infrastructure - Availability of Public transports (transportation in/between destinations, etc.) - Price (package tour, - Diversity of prices accommodation, air fare, - Value for money etc.) - Reasonable air fares -Communication and - Regular communication with the promotion programs public through Weibo (sales promotion, - Joint sales promotion with advertising, public alliances relations, direct/online marketing, etc.) - Thailand products cover all - No deep penetration to retail ends traditional channels. - No new social media usage - No 2nd & 3rd tier cities sales -Image of Thailand and Thailand tourism industry (political stability, safety, hygiene, eco-friendly, etc.) Capability of tourism personnel (guides, hoteliers, drivers, etc.) Thailand’s crises/negative issues (political unrest /safety issue/environmental issue) - Value for money - Look “unrest destination” + “not hygienic” - Lack of professional and standard tour guides - Cyclical political unrest Disaster: Tsunamis along the coast 6 2.2 Opportunities and Threats in the market that influencing to Thailand Tourism : Macro-environments Opportunities Threats - The respect and love for the - Cyclical political unrest Political environment (legislation – regulation; King; esp HRH Princess taxation, Social Unrest Siridhorn etc.) Economic environment - Exchange rate to RMB is good - Possible devaluation of RMB (exchange rates, fuel - Possible economic collapse of the price, unemployment, People’s Republic of China inflation ,etc.) - (Thai) Chinese people in various Social/Cultural parts of Thailand environment (population age structure, cultural values, demography, holidaytaking habits, social concerns, tourist behavior, etc.) - Chinese young generation group Technological environment (internet is more open minded and able to usage, social networking involve themselves in social /media usage, smart platform phone user, etc.) - Unhealthy air of Guangdong Natural environment (climate changes, etc.) makes people seek for good quality of air Accessibility to Thailand (availability, capacity etc.) - Not only seats / flights of the areas but also there are a lot more from HK and Macao - No direct flights from some provinces to Thailand; such as, Hainan SECTION 3: Market segmentation Please list and describe all market segments available for 2015 with available and practical details of demographics and psychographics to be used in developing strategies and tactics. Leisure market: Size & Segments Preferences/Values/Benefits Competitors growth Family 500,000 Variety of destinations and products Korea, Hong Kong, Taiwan +10% Wellness 50,000 Variety of destinations and products Korea, Hong Kong, Japan +5% 7 Special interest market: Size & Segments growth Golf 300,000 +10% Diving 5,000 +3% Muay Thai 3000 +5% Caravan 2000 +5% Preferences/Values/Benefits Variety of destinations Competitors Philippines, Indonesia and Malaysia Variety of destinations and products Philippines, Indonesia, Malaysia, and Maldives Uniqueness None Uniqueness Vietnam, Malaysia Hi-End market: Size & growth Medical Tour 8,000 +10% Pool-villa 3,000 Honeymooners +5% Segments Preferences/Values/Benefits Competitors Comprehensive Korea, Japan Service Bali, Maldives SECTION 4: Target segments [ - Please list market segments that you plan to target in 2015 by selecting from the available segments in SECTION 3. Leisure markets: Segments Wellness Family Thailand / TAT’s Strengths Competitors Korea, Bali - Korea, Hong Kong, Taiwan - Variety of destinations and standard products Variety of destinations and standard products What to be improved in Thailand to serve these segments - Chinese materials - Seminar for front-liner - Chinese materials For this market, TAT GZ will launch the projects as below: -Media and Agent FAM Trip for wellness and spa inspection, as well as new destinations for family tour, including Trang, Khao Yai and Krabi, etc. -Joint promo with local travel agents -Photo taking competition for the new destination on TAT GZ weibo in order to keep exposure on the new destinations. 8 Special interest markets: Segments Competitors Thailand / TAT’s Strengths Golf Philippines, Indonesia, Malaysia - Muay Thai None - Diving Philippines, Indonesia, Malaysia, and Maldives - Golf paradise Short distance to China Seasonal promotion by Thai golf clubs Good relationship with Muay Thai Club in Guangzhou What to be improved in Thailand to serve these segments - TAT should create one website for info on all golf clubs in Thailand, especially in Chinese. - Create Chinese materials promotion about Muay Thai There are various - More promotion diving sites for - More info on ground different level of dive clubs divers. Caravan Vietnam - Good location (as the - Chinese materials incl center of AEC) GPS For this market, TAT GZ will launch the projects as below: 1.Joint with main local agents for Muay Thai boxing tour package with Ad support. 2.Joint with Top Player Travel Service for Summer Dive packages targeting on dive school students and university students. 3.Joint local auto associations and Shenzhen CCT for Caravan and fly-and-drive packages, TAT will support welcome dinner and print Advertisement. Hi-End market: Segments Competitors Thailand / TAT’s Strengths What to be improved in Thailand to serve these segments Medical Tour Korea, Japan, HK - Comprehensive - Chinese materials Pool-villa Bali, Maldives - Wider range of pool- More packages Honeymooners villas towards China market 1. Launch Micro film campaign or join with film company to produce micro film/movie including Thai luxury tour attractions. 2. Joint with OTA incl www.ctrip.com, Mangocity.com so as to launch tour packages including the film shooting sites in Thailand. 9 SECTION 5 : Destination to Promote 1. Specify main destinations where you are promoting and who is your target group. Destination Target Group Krabi Trang Both Group & FIT FIT Khao Yai Family, golfers, OL, High-end Product Premium Accom , Snorkeling , Sea Sand Sun Golf , Agro-Tourism , wellness Reason why you are promoting this area Phuket is too crowded and old Phuket is too crowded and old Continuous promotion 1. MET/AET 2. Joint Ad campaign with local agents, especially FIT agents. 3. Specify new destinations that you plan to promote or possible to promote and who is your target group. Destination Target Group Product Trang Lipe Couples, High Social Status Travellers, Environment Lovers Diving, Honeymoon, Relaxation Chiang Rai & around North Caravan Soft adventure / food / fruit / Spa ………………………………….. Reason why you plan to promote this area Both our aircrafts and products already at close by airport like Krabi, we have to provide new destinations and products to our clients, especially those with larger budgets to spend. Promotional plan under AEC