BDA-淡馬錫中國旅游市場洞察研究China's Travel Industry-20151130

Confidential?BDA2015CapturingtheChineseConsumptionOpportunitythrough2020

PartII:Deep-DiveStudyofTravelIndustryinChina2TableofContentsSummaryDemandSideAnalysisSupplySideAnalysisNewBusinessModelDemandSide:Chineseconsumersaremovingtowardsoutboundtravelanddesiremorefreedomtodevisetheirroutes,withmorebudgetallocatedtoshopping;theirconcernsforservicequalityindifferenttypesoftravelandsupplierandchannelselectionsstillexist3DemographicChangeBehaviorChangeRiseofmillennials:Millennials,makingup31%ofChina’stotalpopulationandrepresenting415MNconsumers,areenteringprimeconsumptionyears.Increaseofincome:ConsumerswhosemonthlyincomefallintorangebetweenRMB5K-10Kmakeupthemajorforceoftravelconsumption.Astheirincomerises,theyaremoreinclinedtoincreasespendingonfunactivitiesliketravel.Demandforoutboundtravelprevails:Asconsumersaremoreeducatedandgloballyaware,outboundtravelsectorisboomingwithconsumerstravelingoverseasmoreoftentobroadentheirhorizons.Morefreedomtodevisetheirroutes:Consumersdesiremorefreedomandwishtoplantheirownadventureduringtravel,intheformatoffree-independenttour,self-guidedtourormorefreetimeduringgrouppackagetours.Spendingpattern:Totalspendingincreasedwithbudgetlargelyallocatedtoshopping,andwiselyallocatedtoaccommodationandtransportation.Chinesetravelers’overallspendingontravelexhibitsanupward

trendwithmorebudgetallocatedtoshopping,especiallyinoutboundtravel.Meanwhile,theyconsidervalueformoneymostimportantinaccommodationandtransportationsoastosparemorebudgetforshopping,theytendtofindmostfavorabledealswhenbookingairlineticketsandhotels.Channelselection:Moresophisticatedinaccessinginformationandpricecomparison.Consumersespeciallymillennialsarepoweredandshapedbytechnologyandinternet.Intermsofbookingchannels,theycaremostabouthighvalueformoneyinpriceandservicequality,andaremorerelyonmobiledeviceswhenbooking.ConsumerDynamicsKeyFocus&PainPointsSource:BDAresearchandanalysisConsumers’primaryunfulfilledneedsintravellieinservicequalityconcernsintermsof1)differenttypesoftraveland2)suppliersandchannelsselections.Typesoftravel:Ingrouppackagetours,consumersaredissatisfiedwithlimitedfreetimeandtheexcessofself-paidactivities;Indomestictravel,consumersaredissatisfiedwiththeinformationtransparencyofdomesticattractionssuchaspricesinpeakvs.off-peakseasons;Inoverseastravel,there’surgentneedfortranslatorsorinformationinChinesewheneverandwhereverpossibleSupplierandchannelselections:Travelagencies:Consumersdesiremorevarietiesoftravelpackagestochoosefrom,andtheabilitytocatertodiversifiedneedsoffamilymembers.OTAs:Consumersarealsoconcernedbythelargeamountsofdeposits

prepaidanddesiretimelyandmorecomprehensiveonlineservices.Inhotelandairlineticketbooking,theydesiremorevalue-addedserviceslikefreeWIFIandluggagetransport.SupplySide:OTAscontinuestopenetrateintothemarketwithfurtherconsolidationpotential,especiallyinoutboundpackagetoursectors;AmongOTAs,trafficleadersorthosewhocontrolupstreamresourceshaveadvantagesoverpeers4Supplier/ChannelDynamicsKSF&PerformanceStructuralChangesStrategicMovesofChannelsConcentrationlevelandconsolidation:Suppliers:Airlineticketsuppliershaveconcentratedandstableshares,whilehotelsuppliersarehighlyfragmentedandareundergoingslowconsolidation,drivenbytheramp-upofmid-to-highendhotelsChannels:Traditionaltravelagenciesareextremelyfragmented,butareexperiencingconsolidationespeciallyindomestictravelDigitaldisruptionandverticalintegration:OTAsarecontinuouslypenetratingintothedownstreamoftravelmarketinallsubsectors;midstreamwholesalersespeciallyairlineB2BplayersarebeingsqueezedbyOTAandarefacedwithpressureofbeingintegratedOTAs:OTAsaregraduallyshiftingtheirfocusfromthewell-penetratedstandardproducts(i.e.hotel,airlineticketandattractions)totheunderpenetratedpackagetoursector;besides,leadingOTAsaretappingintotheupstreammarketandtryingtocontrolmoreupstreamresourcesfortheirpackagetourbusinessTraditionaltravelagencies:Outboundtravelhasbecomethemajorbattlefieldfortraditionaltravelagencies;TheyarealsoproactivelydevelopingtheironlinechannelstocompetewithexistingOTAsOTAs:Ctriphasbecomethedominantplayerinstandardproducts(i.e.hotelandairlineticket);futureprofitwillmainlycomefromhotelbusinessespeciallyhigher-endhotelsCtriphasunmatchedappealstoservicesensitivecustomersduetoitsunparalleledservicelevelForvalue-for-moneycustomers,CtriphasbeencatchingupQunarinprice,thusCtrip,asthetrafficleader,ismorelikelytobethelong-termwinnerAirticketbusinessisunprofitableandwillbemainlyusedtomaintainandrefertraffictootherbusiness,whilehotelbusinesswillenjoymarginimprovementwhenpricewarendsNonstandardproductsespeciallyoutboundpackagetourisstillunderfiercecompetition,andbothtrafficleadersandthosewhocontrolupstreamresourcescanhaveadvantagesoverpeers;long-termmarginismoreattractivethanstandardproductsOTAsthatcontrolupstreamresourcescansellmoreself-procuredproducts,whichenablestheOTAtohaveadvantagesinselectionandproductqualityoveritspeersConsideringCtripisstillfocusingonthepricewaragainstQunarinhotelsector,playersinthepackagetourmarketcanenjoythetimewindowandexpandtheirpresenceOTAsenjoybettereconomicsaspackagetourisunstandardizedTraditionaltravelagencies:Competitionincontrollingupstreamresourcesisalsofierceamongofflinetravelagencies,andconsolidationhasbeenonthewayfordomestictravel,butoutboundtravelisstillintheearlystageofconsolidation;theironlinechannelsperformpoorlySource:BDAresearchandanalysisInvestmentSweetSpots:OTAsandpremiumtravelagenciesaredeemedtohavethemostinvestmentvalue,meanwhileopportunitiesforupstreamsuppliersstillexist5InvestmentHighlightsRationaleOTAsTraditionalTravelAgenciesLeadingplatformplayers(i.e.Ctrip)withdominanttrafficadvantagesinstandardtravelproductsWiththeaccumulationoftrafficanduserstickiness,itispossibletoutilizethesehigh-frequencydemand(i.e.hotel,airticket,attractionticket)topromotelow-frequencydemands(i.e.packagetourproducts)Besides,thelong-termmarginforhotelbusinesscanbefurtherimprovedalongwiththedeclineofcouponandhighercommissionratechargedtohotels,whenCtripfinishesthepricewarwithQunarandgainsalargermarketshareinthefutureOutboundpackagetourplayersthatcanquicklyrampupinsomespecificdestinationcountriesand1)increasethepercentageofself-procuredproductsbytappingintoupstreamresourcesor2)providedifferentiatedproductswithbetterservicequalityThoughit’sratherdifficulttoexpandpresenceinalloutboundtravelspots,averticalplayercanfocusonsomespecificroutesandquicklyboostthetraffic,thenitwillbeabletodirectlycooperatewithupstreamsuppliersandincreasethepercentageofself-procuredproducts,whichwillresultinbettercontrolofproductqualityandcompetitivenessoveritsrivalsBesides,giventhatCtripisstillfocusingonthepricewaragainstQunarinhotelsector,verticalplayerscantakethechancetorampupLeadingplayersinoutboundtravelwhocan1)havebettercontrolofupstreamresourcesor2)providedifferentiatedproductswithbetterservicequalityWiththedominanceinupstreamresources,itispossibletocornerthesupplyandoutperformcompetitorsinbothproductofferingandpricesDifferentiatedproductswithbetterservicequalitycanenablethetravelagencytochargepremiumstoconsumers,resultinginhighermarginSource:BDAresearchandanalysisUpstreamSuppliersLeadingmid-to-high-endchainhotelsThetradingupofhotelconsumersespeciallyintier-1citiesislikelytoboostmid-to-high-endchainhotelsWell-operatedglobalthemeparksinChinaProfitablethemeparks,especiallythoseintroducedbyglobalplayers,arelikelytobenefitfromthegrowthofvisitorsandrisingspendingpercapitaLeadingforeignretailcompaniesinpopularoutboundtravelspotsforChinesetouristsGiventhatChineseconsumersallocateasignificantportionoftheiroutboundtravelbudgetonshopping,someleadingforeignretailcompaniesarelikelytobethebeneficiary6TableofContentsSummaryDemandSideAnalysisSupplySideAnalysisNewBusinessModel7Domestictravelandoutboundtravelhaveinvestmentpotentialthankstotheirlargemarketsizeandrapidgrowth,whileinboundtravellackspotentialduetoitssmallmarketsizeSource:CNTA,BDAresearchandanalysisDomesticTravel(WithinChina)InboundTravel(IntoChina)OutboundTravel(OutofChina)DefinitionNumberofTouristsTotalSpendingofTouristsChineseForeignerslivinginChinaChineseForeignerslivinginChinaForeigners2014:3,600MN2009-2014CAGR:14%Est.9-yearCAGR:9%2014:109MN2009-2014CAGR:18%Est.9-yearCAGR:14%2014:128MN2009-2014CAGR:<1%2014:RMB3TN2009-2014CAGR:24%Est.9-yearCAGR:12%2014:RMB1TN2009-2014CAGR:33%Est.9-yearCAGR:20%

2014:RMB361BN2009-2014CAGR:7%InvestmentPotentialHugeHugeLow8Domestictravelandoutboundtravelhavewitnessedhugegrowthinthepasttenyears,andareexpectedtomaintainthemomentum,especiallyforoutboundtravelSource:CNTA,ChinaTourismAcademy,BDAresearchandanalysisDomesticTravelOutboundTravelTotalSpendingofTourists(RMBBN)NumberofTourists(MN)AverageSpendingofTourists(RMB)X=2023FCAGR:13%CAGR:9%20142005CAGR:8%2014CAGR:3%20052023F2023F2014CAGR:12%CAGR:21%20052014CAGR:20%CAGR:22%20052023F2014CAGR:14%CAGR:15%2023F2005CAGR:5%2005201414,567CAGR:6%2023FFreeindependenttravel(FIT)hasbecometheprevailingtypeoftravel,whilesemi-self-guidedpackagetourprovidedbytravelagenciesisalsorisinginpopularity9Source:CNTA,Ctrip,BDAresearchandanalysisDomesticTravelOutboundTravel~40%~40%~20%GroupPakcageTour2Self-guidedPackagedTour1FreeIndependentTravel(FIT)NumberofTouristsbyTypeofTravel,Domesticvs.Outbound~20%~20%~60%FreeIndependentTravel(FIT)Self-guidedPackageTours1GroupPakcageTour2AccordingtoCNTA,in2014totalnumberofoutboundtravelersisover100MN,amongwhich~40MNpeopletravelbypackagetours.Mostoutboundtravelersconductfreeindependenttravelsdueto1)largenumbersofoutboundtravelsforbusinesspurposeand2)itscurrenthighpenetrationintier-oneandtier-twocities.Asoutboundtravelfurtherpenetrateintolower-tiercities,theproportionofpackagetourinoutboundtravelwillincrease.Fordomestictravelers,mostseniorcitizensoftentraveltogetherbyorganizedtours.Moreandmoregrouptourconsumersaregettinginterestedinsemi-self-guidedtour,whichgivesthemmorefreedomduringthetourNote:1.Referringto“airlineticket+hotel”combination2.Includingsemi-self-guidedpackagetour,whichmeanshalfofthetourisorganizedgrouptour,whiletheotherhalfwasself-guidedThetop10mostvisiteddestinationsfordomestictravelaremainlysouthernprovinces,whileforoutboundtravelaremainlyneighboringSoutheastAsiancountries10DomesticTravelOutboundTravelSource:CNTA,BDAresearchandanalysis2Q2015packagetourTop10MostVisitedDestinations,Domesticvs.Outbound4%JiangsuZhejiangGuangdong5%6%6%14%7%11%4%8%9%HubeiFujianShanghaiShandongHunanYunnanAnhui2%ThailandHongKongKorea3%3%7%17%8%14%2%10%11%JapanTaiwanSingaporeFranceUSMacauMalaysiaDomestictravelersallocate50%theirbudgettoshoppingandpackagetourenrollmentfees,whileoutboundtravelersallocatenearly60%oftheirbudgettoshopping11DomesticTravelOutboundTravelSource:Ipsos,BDAresearchandanalysisBudgetAllocationbyCategory,Domesticvs.OutboundEntertainment4%Attractiontickets4%Food6%Transportation11%Accommodation18%Shopping58%FoodPackagedtourenrollmentfees8%13%27%Accommodation12%TransportationShopping23%Entertainment18%Total100%Total100%DemographiccharacteristicsofChinesetourists12DemographicsDomesticTravel1OutboundTravelDemographicsAgeEducationMonthlyIncomePost70sPost60sandolderPost80s38%17%6%Post90s39%6%11%56%26%Post70sPost90sPost60sandolderPost80sSource:iresearch,ChinaInternetWatch,BDAresearchandanalysis5%JuniorCollegeHighSchoolandbelow11%Master’sdegreeandaboveBachelor’sdegree31%54%12%2%4%JuniorCollegeBachelor’sdegree12%70%HighSchoolMaster’sdegreeandaboveMiddleSchool9%1-5KBelow1K55%32%5-10K10-20KAbove20K2%3%Above15KBelow5K13%58%13%10-15K5-10K16%Note:1.MainlyChinaonlinetravelersdemographicdataandmayincludebothdomesticandoutboundtravel.Unit:RMBUnit:RMBChinesetravelersaregroupedintofivesegments,namelybudgetyouth,urbanmass,experiencedurban,affluentelderandmasselder,amongwhichurbanmassandexperiencedurbansegmentsareconsideredtobeofhighestinvestmentpotential13Source:BDAresearchandanalysisDomesticTravelFITpackagetourüPost60/70sAffluentElderMassElderüüüüüPost80/90sBudgetYouthExperiencedUrbanUrbanMassDescriptionOutboundTravelFITpackagetourüüCollegestudentswithoutfinancialindependenceUrbanbluecollarworkersormigrantworkersHighlyeducatedurbanwhitecollars,SMEownersorgovernmentstaffElderswhoareabouttoretireorhavemoreleisuretimeAffluenturbanmiddle-agedpeoplePost60/70sPost80/90sAmongthem,“urbanmass”and“experiencedurban”ofpost80/90swilldrivethefuturedemandgrowthinthetravelsector14AffluentElderMassElderBudgetYouthExperiencedUrbanUrbanMassHeisanundergraduatestudentinWuhan,wholovestotravelwithhisclassmatesduringholidaysorvacationsHemainlytravelsindomesticcities3or4timesayear,andusuallybookhotelsandairlineticketsonlinehimselfHecarefullycontrolsthetravelbudget,andthebulkofwhichgoestotransportationandaccommodationHereviewsothertravelers’experiences,andsometimesshareshisexperiencesonaftertravelSheworksinYangzhouandisinterestedinlong-haultrips,whichincludesbothdomesticandoutboundtravelShepreferstouseOTAstobookhotelsandairticketsherselffordomestictravel,butstillreliesongrouptourforoutboundtravelasshehaslittleexperienceSheusuallycomparespricesamongOTAsandtravelagenciesbeforemakingdecisionsSheusuallysharesherexperienceswithfriendsthroughWeChat,andsometimesonMafengwoHeworksforawell-knownforeigncompanyinBeijing,andhastraveledabroadforseveraltimesHeenjoysfreeindependenttravelforbothdomesticandoutboundtour,andusuallyusesOTAsHemakesthoroughplansbeforehand,andspendsmoneywiselyonshopping,transportationandaccommodationHeisinterestedinothertravelers’experiences,andisalsowillingtosharehisownexperiencesthroughSNSShehasworkedforanSOEfor25yearsinChongqing,andisinterestedinbothdomesticandoutboundtravelwithherfamilySheusuallygoestoofflinetravelagenciestopurchasetheirgrouptourproducts,andrarelyusesOTAsShedoesn’tmakedetailedplansforeachtravel,anddoesn’tstrictlycontrolthetotaltravelbudgetShelovestoshareherexperienceswithcolleagues,butusuallythroughchattingHehasalreadyretiredfromamiddleschoolinLuoyang,andisinterestedintravelingindomesticsoutherncitieswithhiswifeHetruststraditionaltravelagencies,andusuallyjoingrouppackagetoursHeusuallyreliesontravelagencies’plansandschedulesinsteadofmakinghisownplansHelikestochatwithfriendsandsharehistravelexperiencesSource:BDAresearchandanalysisTheypreferoutboundtraveltodomestictravel,anddecideondestinationsmainlybypersonalpreference,budget,traveltimeanddurationarrangements15Tier1Domesticvs.OutboundKeyChoosingFactorsDesireddestinationsarefartherandnotlimitedtosurroundingcountries,suchasEurope,NorthAmericaandeventhetwopolesTier2Tier3Source:BDAFocusGroupDiscussion,In-depthInterviewandAnalysisMillennialspreferoutboundtravelthankstoitsperceivedhighervalueformoney.Undertheconditionthattraveldurationandspendingonaccommodationandtransportationaresimilar,outboundtravelisconsideredtohavehighervalueformoney.Consumersaremoresatisfiedwiththeiroutboundtravelingexperiencesandconsiderdomesticonestohavebeenoverlyexploited.Theychoosedestinationsbyconsideringtheirpersonalpreferences,budgetsizeandoff-peaktraveldesires.DesireddestinationsaremainlysurroundingcountrieslikeKorea,Japan,Thailand,etc.Mainlydomestictravelatpresent,verylimitedoutboundtravelexperience.Moreshrewdinbudgetbyspendingmoreeffortfindingdiscountsorflashsaleinformationtodecideontheirdestination“IcanvisitdomesticplaceswheneverIwant,sotheyarelessattractivetome.”--Tier2cityconsumer“AtpresentItraveldomesticallymoreoftenandfriendsofminealllackoutboundtravelexperience.”--Tier3cityconsumer“Ithinkoverseastravelhashighervalueformoney,givensimilartravelduration.”--Tier1cityconsumerDecisionmainlydependsontheirbudgetsizeduetotheirrelativelylowdisposableincome,followedbytravelingdurationandotherfactorsPersonalpreferencecountsmostTravelingtimeanddurationisequallyimportant:Preferoff-peaktravel,willconsideravailabilityofdaysofvacationorannualleaveBudgetsizeislessimportantbutwillstillinfluencetheirdecisionDestinationTheyaregenerallywell-preparedandwillmaketravelplansbeforehand;theymainlymakeuseoftheirfriends’recommendations,OTAandtravelUGCwebsitestogetinformation16Tier1Plannedvs.RandomAccesstotravelinformationDuetolimitedfreetime,tier-1consumersaremorefocusedandresult-drivenwhenmakingtravelplans.Theytrustinfriends’recommendationsmost,andutilizepocketsoftimetoreadtravelguidesonMafengwo,Ctrip,Qunar,etc.Tier2Tier3Source:BDAFocusGroupDiscussion,In-depthInterviewsandAnalysisMillennialsaremorewell-preparedandwillmaketravelplansbeforehand,especiallyforoutboundtravel.Theymakeplansbylisteningtofriends’recommendations,OTAandtravelUGCwebsites,andadvertisements.Tier1consumershavelimitedfreetimesotheyrelymoreontheopinionoffriendswhohavebeentoplacesofinterest.Tier2andTier3consumershavemoreleisuretimesotheywillreadtourguidesandsearchfortravelproductsandroutesindetail,whichmakesOTAandtravelUGCwebsitesmoreimportanttothem.Spendmoretimeontravelplans.Tier2andtier3consumershavemoresparetimetoreadtourguidesandlookingthroughvarioustravelproductsorroutesprovidedbytravelagenciesindetail.OTAandtravelUGCwebsitesaremostmentionedbytier2consumersassourcesoftravelinformation.Tier-3consumershavethemostleisuretimeandarelikelytoabsorbtravelinformationfromvarioussources.Friends’recommendationscountmost,followedbyadvertisementsandinformationonOTAandtravelUGCwebsites.“IwilldefinitelyreadtourguidesonMafengwoandmakemyowntravelplaninadvance.EvenifIhavenospecificdestinations,Iwillalsolookthroughtravelinformationonlineorreadbrochuresprovidedbytravelagenciestokilltime.”--Tier3consumerPlanningTheywilltravelindependentlytodomesticdestinationsandmakereservationsonline;theycaremostaboutlowpriceinbookingairtickets,whiletheyexhibitatrading-uptrendinbookinghotels17Tier1FITvs.PackageToursConsumersintier-1citiesaremore

safetyandtimesensitivethanconsumersinlow-tiercities.Theycareaboutpricebuttheyconsiderthesafetyrecordandconvenienttimeslotsmoreimportantthanlowprice.Tier2&Tier3Source:BDAFocusGroupDiscussion,In-depthInterviewsandAnalysisMillennialsmainlyconductfreeindependenttravelindomesticdestinationsbybookingonlineviamobilephone.Whenbookingairticketstheycaremostaboutlowprice;specifically,consumersintier-1citiesprioritizesafetyrecordsandconvenienttimeslots.Whenbookinghotelstheyconsiderlocationthemostimportantelement,thenlivingenvironment;consumersintier-1citiesalsoexhibitatrendoftradingupMostofthemwillchoosefreeindependenttravelAirlineTicketKPCHotelChannelBookhotelsandairlineticketsmainlyonOTAslikeCtrip,Qunar,Aliandmostoftheirreservationsaremadeviamobileend.Bookattractionticketsaftertheirarrival;consumersfromlow-tiercitiesmainlyusegroup-buyingwebsiteslikeMeituanandDianping.Consumersfromtier-2andtier-3citiesdon’thavemuchpreferencebetweenairlinebrands.Theycaremostaboutlowprice.Consumerscaremostaboutlocationconvenience,andtheywillreaduserreviews

withphotoscarefullywhenmakingadecision.Moredemandforcomfortwithanobvioustrading-uptrend.Consumersfromlow-tiercitiesprefereconomyhotelchainsandthetrendformid-endhotelswillcontinuetodominate.DomesticTravel-Supplier&ChannelForoutboundtravel,millennialsfromtier-1citiestendtotravelindependentlyorbyself-guidedpackagetour,whilethosefromlower-tiercitiesaremoreconservativeandtendtochoosegrouppackagetours18Tier1FITvs.PackageToursSameasdomestictravel,considersafetyrecordandconvenienttimeslotsmoreimportantthanlowprices.Tier2&Tier3Source:BDAFocusGroupDiscussion,In-depthInterviewsandAnalysisMillennialsintier-1citiestendtoconductfreeindependenttravelor(semi-)self-guidedpackagetourtooutbounddestinations.Theymakedecisionsaccordingtodifferentscenarios(Semi-)self-guidedpackagetouraregettingmoreandmorepopularthankstotheirfavorableprices.Millennialsinlow-tiercitiesaremoreconservativeandhavemoreconcernsforlanguage,safetyandbudget,sotheytendtochoosegrouppackagetours.MorewillingtotravelindependentlyorbyamixofFITand(semi)self-guidedpackagetoursTravelbygrouppackagetoursonlywhenit’stheirfirstvisitortherearesignificantlanguagedifficultiesAirlineTicketKPCHotelChannelMostlybookhotelsandairlineticketsseparatelyorintheformof(semi)self-guidedpackagetoursmainlyonOTAsandofficialwebsitesoflargetravelagencies.Alsorelyontheofflinestoresoftravelagenciesthankstotheirsafetyinsuranceandin-timecustomerservices.Mainlytravelbypackagetours,cannotchooseairlinesontheirown.Evenmoredemandforcomfortandmorelikelytotradeupthanindomestichotels.Mainlytravelbypackagetours,cannotchoosehotelsontheirown.Morewillingtotravelbygrouptour,givensafetyandbudgetconcernsMorerelyonofflinestoresoflarge-scaletravelagencies,butwithnospecificpreferencebetweendifferenttravelagencies.OutboundTravel-Supplier&ChannelBesidestransportationandaccommodation,theyspendmuchoftheirbudgetonshopping,especiallywhentravelingabroad;theyarewillingtobuymoregiftsinoverseasthemeparksratherthandomesticones19Source:BDAFocusGroupDiscussion,In-depthInterviewsandAnalysisTier1Tier2&Tier3Consumersspendmuchmoremoneyonshoppingandoftenprepareshoppinglistswhentravellingabroad,becausetheyshopnotonlyforthemselvesbutalsofortheirfriendsathome.ConsumerspreferintegratedparksandamusementparkslikeChimelong,HappyValleytominiatureslikeSplendidChinaandarewillingtoconsumemoresouvenirsinsideinternationalamusementparkslikeDisneylandandOceanPark.TotalbudgetSize:BelowRMB10KAccommodation,transportationandshoppingaccountforthemajorityofthetotalbudgetDomesticTravelThemeParkTotalbudgetSize:~RMB5-10KAccommodationandtransportationaccountforthemajorityofthebudget,spendingonshoppingislessOutboundTravelTotalbudgetSize:OverRMB15KShoppingaccountsforthemajorityoftotalbudget,followedbyaccommodation,transportation,etc.TotalbudgetSize:OverRMB10KAccommodation,transportationaccountforthemajorityofbudget,spendingonshoppingisless.“Idon’tliketogotothemeparkforsightseeingpurpose,IpreferamusementparklikeHappyValley.Ithinkoverseasamusementthemeparkshavebetterfacilitiesandwell-madegifts,Iwouldspendmoremoneyinoverseasthemeparks.”--Tier1consumer“Iwon’tspendextramoneyafterenteringathemeparkexceptforfoodandbeveragesthatIcannotbringinside,giftsindomesticthemeparksareexpensiveandnotworththemoney.”--Tier2consumerDomesticthemepark:RMB200forentrancetickets,RMB100forfoodandgifts.Internationalthemepark:RMB500-1,000forentrancetickets,overRMB1,000forgiftsDomesticthemepark:RMB200forentrancetickets,RMB100forfoodandgiftsInternationalthemepark:Lackexperienceinoverseasthemeparksandarelesslikelytospendmoremoneybeyondtheentrancefee.BudgetAllocationInthefuture,theywillcontinuetoincreasetheirtotalbudgetandallocatemoremoneyonshoppingandentertainment;atthemeparks,theyaremorewillingtobuyadditionalgiftsandliveshowsininternationalthemeparks20Source:BDAFocusGroupDiscussion,In-depthInterviewsandAnalysisGeneralTrendContinuetoincreasetotalspendingbothindomesticandoutboundtravelTotalBudgetThemeParkAllocationTrend“Myspendingontravelwillcontinuetoincrease,especiallyonoutboundtravel.”--ConsumerDomesticthemepark:UnwillingtospendextramoneyInternationalthemepark:Highwillingnesstospendmoremoneyonsouvenirs