China overtakes the UK as the number one source of international visitors to the USA

China

This will be the headline within 5 years from now, according to the Department of Commerce/National Travel and Tourism Office.
The forecast predicts 4.9 million Chinese visitors versus 4.4 million Brits. China generated 1.8 million arrivals in 2013, setting a new record for arrivals to the United States for the seventh consecutive year. China now ranks 7th in visitors to the United States. Spending by Chinese visitors to and within the United States was a record $21 billion in 2013, second only to Canada.
5 years is not a long time in global marketing. Are we ready? What lessons can we learn from the past?
Many years ago before the modern world existed (1992 pre-internet) I was Chairman of the International Marketing Committee with the American Hotel and Lodging Association.
Inbound tourism to the USA was in its infancy in general marketing terms. Many larger travel, tourism and hospitality companies had established international sales strategies that were simple in nature due to the (then) lack of electronic sophistication.
The US industry was familiar with marketing to the European countries and were embarking on South American initiatives. South America was regarded as an emerging market.
Making many headlines back in the early 1990’s was the super resilient Japanese market. They were known as high spenders and everybody wanted a piece of the Yen action. Back in 1990 3.2 million Japanese visited the USA. They spent on average $2,312 per person. Compare that to the $330 per person coming from Canada, but there were 17.3 million Canadians and were much easier to reach from a marketing perspective. Japan became the “Market du Jour” and we went all out to sell the USA to the Japanese.
The big “ah-ha” moment was quickly learnt, how do we not just attract but more importantly, how do we serve international travelers. Being smart and savvy marketers we began to gain insight into the Japanese traveler.
Food, as an example, was very American. Asian items simply didn’t exist in mainstream hotel menus. We weren’t too good in understanding other cultures, traditions and matters of protocol.
We can’t attract international visitors and forget that we have to serve them. This was the key driver behind my small team writing and publishing a book on International Marketing, called “The Hospitality Guide to Attracting and Serving International Travelers”. This was published by the American Hotel and Lodging Association.
It became so popular that we teamed up with the Department of Commerce, US Travel Association and many DMO’s and developed a road show providing a practical approach to the topic.
Fast forward.
Today, China is the country getting all the attention. Our government has just announced the extension of the validity of tourist and business visas to ten years, Brand USA have compelling sales and marketing programs in place, many states have launched aggressive marketing plans with China as a stated top priority, NTA have a dedicated China program, many mega hotel brands have sales programs and regional Chinese offices in place – some for many years.
A few weeks ago, CITM (China International Travel Mart) took place in Shanghai with the largest contingent of American suppliers. The participants ranged from large to small suppliers, each wanting to grab a share of the rapidly expanding Chinese outbound market.
Many participants will not get Chinese visitors. That may sound harsh but it will be a matter of fact. If you build it they may not necessarily come. Do you have something that will appeal to a Chinese traveler? What will it take to woo these Chinese travelers? Are you prepared to make the long term investment required and have you built your ROI model?
China expert Chris Spring, president of New York based Spring O’Brien, represents the China National Tourist Office here in the USA. He suggests that a good first step is to develop relationships with the established Chinese inbound operators here in the USA. Chris noted “If you have the right product in the right place you will get immediate business. By developing product with the inbound operators you will learn the nuances of the Chinese traveler first hand. It will be an invaluable learning tool and a lot less expensive than a sales or marketing program in China.”
China has four times the population of the USA. How much do you invest in the easier to reach domestic market? Is your investment in China going to resonate?

Before you follow in the footsteps of Marco Polo and begin your Chinese adventure I would strongly suggest a deep understanding of what the road ahead looks like. In the words of a Chinese proverb “Dig the well before you are thirsty”. Be prepared. Here is a basic check list that may help you before you start seeing Chinese travelers at your front door.

  • Are there any Chinese travelers already visiting my area?
  • Do I have Chinese translations of any informational material?
  • I have Chinese translations of any informational material?
  • Do I have a Chinese speaker on staff or in my community?
  • Are Chinese language menus available?
  • Are menu items Chinese friendly?
    •   Rice option
    •   Asian veggies
    •   Chili sauce (Chinese not Heinz)
    •   Soy sauce
    •   Tea
  • Appropriate dining utensils
  • Is there a smoking area
  • Are there globally understood symbols in place
  • Where can currency be exchanged
  • Is there a local doctor who speaks Chinese
  • Free WiFi connectivity

A pragmatic self assessment will help you define your real potential. Do you have a marketing plan? Does your location have appeal to the Chinese market? Are you accessible? Does your DMO have a plan in place that you can co-op with? Do you understand your defined target market? As with any market Chinese travelers do not all share the same demographic. Are you up to date with current affairs that may impact your plans? Can results be measured?
China will, without doubt, have a dramatic impact on inbound tourism. There are many who have been marketing to China for numerous years. It would be prudent to listen to those who have made this marketing journey before. Let’s learn from lessons of the past. I will end appropriately with another Chinese proverb…”Only he that has traveled the road knows where the holes are deep”.

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The Art of Content Strategy

Content Strategy 2

For years we have known that Content is King. More recently (our current Social (R)evolution), we have engaged Content in a different place. Namely, at the intersection of Search and Social.

Sometimes we shy away from content because we don’t understand its hierarchy in our attempts to captivate and intrigue the customer. Traditionally, content is for publishers. However, by having a website automatically makes us a publisher. We need to think as a publisher and act as a publisher. Our audience thrives on content. Relevant content, refreshed on a regular basis is a necessity. No news is actually bad news.

Content has re-emerged as the marketing go-to superstar in the social world we live in. Yet so many companies do not have a Content Strategy. First we have to agree on what a Content Strategy is all about. To me, it is simply stated as “getting the right stuff, to the right folks, at the right time, in the right channel, on the right device”. Easier said than done. The customer is at the epicenter of the universe attacked by a non-stop barrage of whirling junk debris and we as customers have become smarter and do a decent job of avoiding this clutter.

How do we avoid being part of the clutter? Embracing the “getting the right stuff, to the right folks, at the right time, in the right channel, on the right device”  definition, where do we start ?

We start with customer insights. Understanding needs and wants and delivering a ‘sensing and serving’ approach to the customer. As seamless as possible. Data driven. Relevant, timely and personal. A good Content Strategy will extend the Life Time Value of your customers.

Successful Content Marketing is developed by organizing your customers into clusters or persona’s. This allows us to message appropriately. It keeps our eye on the ball and we can build Objective Profiles that relate to your defined customer group(s).

As we gain insight from this defined group we determine the triggers that will drive them to (as an example) your website. The goal here is to get your product or service, your destination or hotel, on to the radar screen and in to the consideration zone. But first we need to intrigue them with relevant content to fuel their planning and ideation process.

We should learn the timing of this from insights gained from the characteristics and behavior patterns of the defined group. Maybe even overlaid with transactional data.

Next develop your Communication Calendar. The Communication Calendar should again be driven by data insights. Preferably triggered by the customer as opposed to “Spray and Pray”. If you have specific events, make sure that you have created the persona group that will improve response rates and conversion. Remember the mantra “getting the right stuff, to the right folks, at the right time, in the right channel, on the right device”.

You are now ready to share your content. Make sure your content is the right content for the defined group. Is there anything missing? Do you need to grab additional content. Does the content fit the group. As an example, mountain biking content at a resort might not fit a customer group composed of Boomers. (Although a number of Boomers do enjoy mountain biking).

Today’s Über-Connected consumer can reach you from a multitude of channels and devices. Your content strategy should identify the various customer touch points. This requires some creativity in repackaging your content in to something that looks new and fresh. As an example; a series of top notch consumer generated themed photos collected over the last few months repackaged to tell a themed story. All content shared should be classy, polished and compelling. And remember that the first point of contact is likely to be mobile. Make sure you content renders well in this environment.

As you define your Content Strategy ensure your framework has good metrics. If you can’t measure it seriously consider it being part of your plan. What can’t be measured normally doesn’t get funded.

Another major reason for a Content Strategy (as if we needed another reason) is the continually changing algorithmic playing field from Google as they continue to tinker with their search bots. We have witnessed Google give content a higher priority over keywords. Cramming keywords in to posts and messaging doesn’t cut it anymore. We should be more concerned about the topic searched and make sure it is found in an authoritative and naturally flowing content. This landscape will be in continual flux as Google’s encrypted organic search keyword algorithms change in future updates.

Bottom line is that consumers love content, fresh compelling content…and so do Google bots.

So, let’s head in the right direction at the intersection of Search, Social and Content or you could be headed down Lonely Street and checking in to Heartbreak Hotel.

heartbreak-hotel

You Have the Power. Use it Wisely.

As we approach summer, there are many that feel the need to create a summer campaign because that’s what’s expected and what we have been doing since summer vacations were invented.

I suggest we turn the concept of a summer* campaign on its head.   (* spring, fall, winter)

It’s not necessarily a radical approach when you really think about it.

As sophisticated hoteliers, we have data everywhere. As an example, we know:

  • The guest name
  • Where they live
  • When they book
  • How long they stay
  • How much they spend
  • Visits to spa, golf, dining and other activities
  • How often they visit
  • The channel they book
  • Their credit card of choice
  • Etc.

So, at the very least, you have what I would call the basics. And it’s a great place to start.

Multiply this data by all the guests that have stayed with you over the past few years. Hopefully, your records go back several years. This is your active database. You collect guest data from all key touch points. If you are lucky they have opted in to receive information on your property.You are sitting atop a gold mine.

Let’s create a scenario.  Mr. and Mrs. Seymour Profit visit your property 2 times every winter because they enjoy cross country skiing. They are in your database. They live a 3 hour drive away. Fast forward. Your Summer Family Special is emailed to your entire database because it’s your Summer Family Special. It has a great rate and kids eat free. You blast your past guests with this Summer Family Special.

You may give your Summer Family Special a fancy marketing name but it’s what we call Spray and Pray. There is no defined strategy and clearly no targeted focus behind this promotion, other than summer is coming. There is no benefit to Mr.  & Mrs. Seymour Profit, who have no kids and only visit in winter. You may perceive it as a great offer but meaningless without relevance and good timing. In fact, you have probably upset Mr.  & Mrs. Seymour Profit because they feel you really don’t know them and they now have you in their Junk Mail folder. Goodbye Seymour Profit.

This illustrates a one way communication path reminiscent of the 1980’s.  More importantly you have valuable data, but not gaining insight from it. Correct analysis of basic data provides wisdom to create relevant, well targeted promotions that will provide a higher ROI. Highly personalized, relevant and timely. You have rich data that assists in extending the customer life cycle. It enhances engagement. You can begin or expand the conversation with your guests on their needs. This is not new.  I remember successfully working on these types of models several years ago with hospitality and DMO clients. Baby steps, leading to more sophisticated modeling.

What you have is powerful. More powerful than the dollars OTA’s spend on search. You own the customer relationship built on all the data that an OTA does not have. You know the guests likes and dislikes.

Einstein said “We should take care not to make the intellect our god: it has, of course, powerful muscles, but no personality.”

OTA’s may have intellectual transactional  data but you have powerful insights into the behaviors and characteristics of your guests. You have the ability to learn more about your guest than any OTA.

You have the power, use it wisely.  And Seymour Profit will become a very good friend and frequent visitor.