WITH the booming Chinese business travel market expected to become the world’s largest in the near future, the travel industry has to innovate their products and services to keep up, according to Carlson Wagonlit Travel (CWT) China.

On the sidelines of the CTW China 2015 press conference yesterday, Albert Zhong, general manager of CWT China, told TTG Asia e-Daily: “To meet the needs of the evolving market, we have to constantly improve and innovate to better serve China-based business travellers.

“Besides the usual procurement-related activities, managing internal and external stakeholder relationships…our role has expanded to identifying new technology solutions and applying business analytics to support clients’ growth.”

As such, CWT China rolled out the first online booking tool for the Chinese market – CWT Online – to make booking international travel easier for China-based business travellers in 2012.

While CWT China had the privilege of having the “first-mover advantage”, he added it was a challenge to move business travellers from offline to online initially. “We saw the need to move bookings online and companies were also pushing for the mandate. It took some time but now, we are seeing 70 per cent adoption.”

TravelSky’s general manager, Bo Peng, said GDSs have to be ready to simplify the booking process to help corporates who want their bookings done fast. He said: “The usual challenges are the many steps in the booking procedure, especially if there are changes to be made, which is common for corporates.”

TravelSky thus allows changes to be made even at the airport, hours prior to departure, as corporates often make last-minute changes to their flights.

According to Global Business Travel Association’s (GBTA) report in March, the Chinese business travel market will overtake the US as the world’s largest by 2017 due to strong 16.2 per cent annual growth since 2000, with spend volume having surged from US$32 billion in 2000 to US$225 billion in 2013.

GBTA forecasts the Chinese business travel market will grow 14.2 per cent this year, and 12 per cent in 2016 to reach US$336 billion.

Read more in the TTG Official Show Daily ­– IT&CM China 2015

FAVOURABLE factors like Europe’s improving economy and China’s 72-hour visa-free transit policy for more than 50 countries are fuelling demand for longhaul MICE into China.

China may have become more expensive, but European buyers interviewed by TTG Asia e-Daily said the destination still has a lot to offer.

Among the wishlist for Henry Waltz of Gecko Incentives & Events Germany is the formation of a China CVB.

“A China CVB would be impartial and provide a central point of contact for the specific information buyers are looking for,” Waltz said.

But Alco-Tours Kafarski Poland’s Boguslaw Kafarski said China is too big and access to the provincial authorities would be more useful to buyers.

Kafarski is keen to expand into the less well-known provinces such as Shaanxi and Hunan. “Polish MICE groups are interested in mountainous and nature destinations.

“Although China has become more expensive in recent years, it is popular because direct flights from Warsaw to Beijing take only about eight hours.”

Said Gert Bakker, owner of The Netherlands’ First Class Business Travel, which handles high-end government-related mayors’ visits and trade missions: “With Europe’s economy growing again, more companies are heading to China. In 2014, we organised four trade missions and this will be increased to five this year.

“A mayoral visit may have a delegation of 30 to 40 companies and we can pick up new ideas at IT&CM China for our clients.”

Exclusive agent for Volkswagen in Germany and Eventives’ managing director, York Schluter, said the company is getting more business this year. He highlighted the Pearl River Delta covering Hong Kong, Macau and Guangdong as suitable for first-time MICE participants and the north for subsequent trips.

“What appeals to Germans is the mixture of traditional and modern China. Measures like China’s 72-hour visa-free transit policy does not only make access easier, there is also a cost saving,” Schluter said.

Read the full story in the TTG Official Show Daily ­– IT&CM China 2015

Additional reporting from Prudence Lui

MORE Chinese incentive groups are picking longhaul and exotic destinations thanks to improved air connectivity and more relaxed visa regulations, according to key DMCs interviewed at IT&CM China.

CITS International MICE Shanghai deputy general manager, Lu Yun, said 70 per cent of MICE traffic is longhaul, adding: “The market is booming and we are seeing new record numbers every year.

Clients rank ease of visa approval, security and connectivity as top criteria when selecting a destination.

Following a 10,000-pax incentive to the US last year, the company also sent a group of 3,000 people to South Africa, while a client has just picked the Netherlands.

Lu added: “This is unexpected and the key challenge is about logistics and capacity for a big group. Take the recent incentive to South Africa as an example, we had to transport all 3,000 staff to the destination within three days and we split them into groups.”

According to CTS HK Shenzhen Int’l Travel Service project manager, Sabrinnah Peng, most domestic clients have already seen China so they prefer to go abroad and hotspots are Europe, the US, Australia and New Zealand.

She believes demand for more exotic destinations such as North Europe have potential.

Changsha China International Travel Service vice general manager, Bo Hong, has already received such requests from younger travellers who crave new locations like Mauritius and Israel. “I want to find out more about Sri Lanka, Palau and Fiji at the show for our groups of around 20 people each.”

Shanghai CS Innovation Consulting, sales and marketing executive vice president, Lee Kuan-lun, said he has received an incentive request for a small group to Reunion Island near Madagascar because of the volcanoes for teambuilding activities after their meetings.

However, Shanghai-based Lord Corporation’s China Region specialist, Aya Wang, pointed out that choices are limited as the company’s policy is to avoid politically unstable destinations, while CITS (Jiang Su) MICE manager, Xu Xian Chan, said only corporates in first-tier cities like Shanghai and Beijing can afford such trips as they are expensive. “But I believe the China market will mature and the trend will pick up,” Xu said.

Read more in the TTG Official Show Daily ­– IT&CM China 2015

WITH more cities in China realising the potential and value of MICE, the Shanghai Municipal Tourism Administration (SMTA) is taking the lead in creating a platform at the annual two-day China International Meetings and Conferences Forum (CIMCF) to share expertise and raise standards.

Seven cities have joined forces to advance MICE: Shanghai, Beijing, Hangzhou, Nanjing, Suzhou, Jiaxing and Ningbo.

Patrick Chen, deputy director, international tourism promotion, SMTA said: “Many cities want to attract MICE, but are not ready. Many of the issues will be discussed at CIMCF and we hope more cities will participate.”

CIMCF is a networking and educational platform for MICE industry players to learn about new trends and how cities have to develop to be more ready as MICE destinations.

“Apart from sharing knowledge and new trends, the forum also looks at how to attract business,” Chen added.

Meanwhile, Business Events Hangzhou has come up with an ambassador programme, following in the footsteps of Shanghai, which has successfully appointed prominent figures in society, such as celebrities and well-known doctors or university professors, to promote the city as an association destination.

Roger Shu, MICE manager, Business Events Hangzhou, said: “What we do is to convince and help these ambassadors to bid for an event.

“It was not an easy start. We needed to convince them that they are stars of their own fields. We support them with accommodation, transport, setting up meetings,” he explained.

Last year, Business Events Hangzhou escorted an ambassador to bid for an event in Paris and won a meeting with an expected 700 delegates – 500 from overseas and the rest from China – in 2016.

Such an initiative is not new to some cities in China, but not all have been successful.

Speaking of Shanghai’s experience, Chen said: “Shanghai has 100 ambassadors from 30 industries.

“Looking after them is a tough job. Most of them are celebrities, scientists and professionals who are busy flying around the world. We have a team which is in contact with them, with a personal assistant sending updated information and small gifts as a token of our cooperation.”

Read more in the TTG Official Show Daily ­– IT&CM China 2015

GLORIA Hotels & Resorts is planning to open a sales and reservations office in Chengdu and beef up its Hong Kong, Shanghai and Beijing operations to cope with continued expansion in Asia.

Explaining the Chengdu move, Willie Ooi, executive vice president, said there is a huge developing market around the south-western region, describing it as an influential market.

Gloria’s portfolio comprises 43 hotels in China, Japan and Malaysia, with 27 more due to open over the next 36 months, and another 18 under negotiation.

New brand GtEL, a mid-tier business product, has opened in Qingdao, Ooi said, and will also enter Nyingchi in Tibet, Luotian, Hubei, and Changsha. Franchising will be part of GtEL’s development.

“This mid-tier business hotel concept is appearing to be a very viable product given the challenges in the Chinese market today, with the government clamping down on extravagant spending,” Ooi noted.

“It is not a budget hotel product and it is also not a first-class product, but sandwiched in-between.

“The growing middle-class have, by and large experienced staying in a budget hotel and would like to upgrade to slightly better-grade hotels.

“This growing trend is real and huge and I intend to grow this product over the next 24 months.

“But it needs a bit of fine-tuning over the next six to 10 months,” he commented.

Meanwhile, Gloria took over management of the Swan Garden by Gloria, Melaka, Malaysia in January and will be spreading its management expertise into the Malaysian market over the next 24 months with another three to four hotels.

Ooi said: “I found in my negotiations with owners in Malaysia, they are all keen to grab a piece of the huge Chinese outbound market.”

TAIWAN’S MICE Promotion Program (Meet Taiwan) will intensify efforts in China this year by venturing into cities eligible for its FIT programme.

Two sales missions are scheduled in 2015 with the first held this week covering Urumqi, Shanghai and Suzhou, followed by Harbin and Beijing in August.

A Meet Taiwan spokesman said that as there are still some restrictions for Chinese FITs travelling to Taiwan, first- and second-tier cities are being targeted to showcase Taiwan.

“We’ll hold roadshows and fam tours in China,” the spokesman added.

Patti Tang, director of Willy Event, which specialises in meeting and incentive traffic from China, said: “Chinese MICE is set to grow further this year due to many applications as well as proactive promotional efforts from Taiwan.

“I am a participant of the sales mission to China this month because many Chinese cities have not yet opened up and Meet Taiwan will connect us with local trade commissions, tourism bureaus and potential buyers.

“Chinese travellers are still not familiar with Taiwan so our workshops will help raise their awareness.

“Taiwan is also regarded by the Chinese as a once-in-a-lifetime destination. In the past, many of them wanted to come but couldn’t so it is full of mystery for them. Indeed, we offer a diverse range of tourism products,” Tang added.

Meanwhile, from April 15, 11 more Chinese cities will be granted FIT access to Taiwan. The cities are Haikou, Hohhot, Lanzhou, Yinchuan, Changzhou, Zhoushan, Huizhou, Weihai, Longyan, Guilin and Xuzhou.

This fifth round of approval brings the total number of eligible Chinese cities to 47. As of end-February, FIT traffic surged 125.8 per cent year-on-year to 2.2 million.

Hohhot-based Peace Tour general manager, Lv Fei, said Taiwan is a popular destination for MICE and added: “Unlike south China, our land-locked location in north China means there is no access to the sea, which our clients crave for.

“It’s very easy for us to push Taiwan given positive feedback such as reasonable prices, excellent F&B offerings and clean hotels.

“Our incentive/FIT group size on average is fewer than 20 people.”