CHAPTER 7 - The Demand Side

Summary

This panel discussion explores the evolving travel preferences of Chinese and Japanese tourists in the post-pandemic era, with a focus on the Mekong region. Experts discuss how travelers now prioritize safety, smaller group travel, and experiential vacations. The session highlights the increasing role of digital marketing, with platforms like Xiaohongshu and Douyin gaining traction in China. The conversation also emphasizes the importance of clear communication and safety protocols to regain traveler confidence. Panelists share insights into how travel providers can prepare for the return of these markets, offering actionable tips for leveraging digital channels and building strong trade relationships.

Takeaways

• 😀 Business travel will recover slower than leisure travel, as people seek alternative ways to do business without the need to travel.
• 😀 Post-pandemic, Chinese travelers prefer smaller group tours and family travel over large group tours.
• 😀 Perception of safety will play a key role in travel decisions, as travelers prioritize destinations with a positive reputation for health and safety.
• 😀 Japanese travelers are cautious and focus on public health and safety, seeking destinations that follow global safety protocols like WTTC's Safe Travels stamp.
• 😀 Communication with local communities is crucial to restoring trust and confidence in tourism destinations.
• 😀 Japanese travelers are hesitant about booking trips due to uncertainty about service levels, information accuracy, and restrictions at the destination.
• 😀 The Japanese market favors single-destination stays rather than multi-destination itineraries, with an emphasis on business and residential travel for reopening.
• 😀 Japan's emerging trend of 'workations' combines remote work with vacationing in resort areas, which could influence travel patterns in the future.
• 😀 Mekong region countries are in a strong position to attract Japanese travelers, particularly due to low COVID-19 transmission rates and their reopening processes.
• 😀 Digital marketing should focus on emerging platforms like Xiaohongshu and Douyin (Chinese TikTok), in addition to traditional ones like WeChat and Weibo, to effectively engage the Chinese market.

Q & A

What are the main travel preferences of the Chinese market post-COVID?

The Chinese market has shifted towards smaller groups and family-oriented travel. The appeal of large group tours has diminished, and travelers now prefer more intimate experiences with family and friends. Business travel is expected to recover more slowly than leisure travel, and destinations need to focus on managing their image of safety.

How has the pandemic affected business travel in China?

Business travel is anticipated to recover more slowly than leisure travel. Many businesses have adapted to alternative methods of conducting business, such as digital communication, which may lead to reduced business travel even after the pandemic.

What should destinations do to address safety perceptions among Chinese travelers?

Destinations need to focus on public relations (PR) strategies to manage the image of safety. It's crucial to highlight safety measures, the handling of health issues, and the prevention of future flare-ups, as Chinese travelers prioritize perceived safety.

Are there any differences between the Chinese and Japanese markets in terms of travel preferences?

Both the Chinese and Japanese markets are moving towards smaller groups and family-oriented travel post-pandemic. However, the Japanese market is more cautious about travel and prioritizes safety. Additionally, Japanese travelers are more focused on ensuring that they receive the same level of service and enjoyment as before.

What are the key challenges for the Japanese market when considering travel post-pandemic?

Japanese travelers are concerned about the uncertainty of receiving the same level of service and enjoyment as before, the lack of accurate information about travel destinations, and the inability to move freely due to restrictions at the destination.

How can the Mekong region better prepare for the return of Japanese tourists?

The Mekong region should focus on maintaining clear communication with travelers and the Japanese community, ensuring safety protocols are in place, and offering a consistent level of service. Destinations should also be ready for workation travelers and cater to digital nomads looking for remote work options.

What role does digital marketing play in attracting the Chinese market?

Digital marketing remains crucial, but the channels have evolved. Platforms like short video content, live streaming, and social media platforms like Xiaohongshu (Red) and Douyin (Chinese TikTok) have gained prominence. Marketers should update their content strategies to focus on these emerging platforms and continue to highlight safety and health in their messaging.

What are the recommended strategies for destinations to engage with Chinese travelers while borders are still closed?

Destinations should focus on relationship-building with OTAs and the Chinese travel trade through virtual events, webinars, and online roadshows. It's also a good time to ensure that travel products are updated to address safety concerns and appeal to the evolving preferences of travelers.

What digital platforms should destinations focus on to engage with Chinese travelers?

Destinations should prioritize platforms like WeChat, Weibo, Xiaohongshu (Red), and Douyin. These platforms have strong advertising offerings and a wide reach. Additionally, destinations should consider collaborating with KOLs (Key Opinion Leaders) on these platforms to promote their offerings.

What is a key actionable tip for sellers targeting the Chinese market right now?

One key actionable tip is to invest in digital platforms like short video content and live streaming. Additionally, ensuring that the travel products are updated and ready to address safety concerns is critical. Maintaining relationships with OTAs and travel trade partners through virtual means is also important during this period of border restrictions.