Mailman X Business Weekly | November 9

Mailman X Business Weekly | November 9

Here is China’s top tourism business news that you need to know from this week:

China’s Obsession with Short Videos has other Internet Giants Worried
Video clips like TikTok’s are now consuming nearly nine percent of Chinese people’s time online, a 5.2 percent jump from 2017, according to app analytics firm QuestMobile.  Companies like Tencent and Alibaba are now playing catch up and feeling a need to tap into this new market and both experience its share of challenges to create competitive video platforms. Read more here

Mailman Take: With over 150DAUs, and 8.3M Videos watched every 60 seconds in China, its slowly dominating the everyday lives of young people in China.  As the platform continues to evolve brands will have more and more opportunities to create creative video content. For Tencent and Alibaba, it looks like it will be difficult for them to topple over this rising channel as users continue to flock to Douyin.

Chinese Travel To America — Can it Endure a Trade War?
The question many are wrapping their head around is Chinese travel to the USA, the increased value of the dollar, safety concerns and the looming talks of a trade war.  Growing trade tensions between the U.S. and China this summer reignited fears in the travel industry that a steep decline in Chinese travelers to the U.S. would follow the political tensions.  LinkedIn article but a good take on the issue. Read more here.

Mailman Take: In looking at preliminary numbers from the Commerce department China is showing a slow in the significant YoY growth we have seen in the past 10 years.  2018 projections are looking at a 2% increase in the 3 million travelers from China and a 2% increase in 2019. Although we cannot predict the future. Now is an important time to consider your approach to two important segments: millennial (rising FIT) and luxury travelers these two groups are more resistant to fluctuations and are not at the whim of group travel as they are familiar with the USA and often avid travelers looking to book and plan their own trips.  We believe it is something to continue to keep an eye on however destinations should be considering a strategy to focus on these two travel segments.

Also this week:

Digital Marketing Vital in the Tourism Industry
Tourism officers, travel agencies and tourism and travel enthusiasts flocked to attend the Tourism and Digital Transformation Conference in celebration of the 2018 World Tourism Day. The conference highlighted the importance of the comprehensive upgrade needed in the tourism sector which is going digital in promoting and campaigning for tourism in the country. Read more here

Ford Teams up with Baidu to Test Self-Driving Cars
Ford is entering a two-year project called the Autonomous driving alliance with Baidu (Google of China) to test self-driving cars on Chinese roads. They will start in Beijing and possibly other Chinese cities, by year-end. Read more here.

Germany Lags Behind in Mobile Payment Usage (China sours)
This article focuses on Germany compared to the rest of Europe, however, it is also a good look at how far ahead China is when it comes to mobile payment.  For example, mobile payment penetration by country: China 79%, India 29%, USA 25%, Germany 11%. Read more here.

64% Choose to take an Outbound trip for Chinese New Year
In the past year, the top 5 most popular overseas destinations for Chinese high-end travelers were Europe (39%), the Americas (36%), Africa (29%), South East & South Asia (23%) and Japan & South Korea (22%). Africa rose fastest, breaking into the top three as it increased from 15% last year to 29%. Read More here.

A Post-IPO Interview with China’s Fourth Largest Internet Company
On-demand food grocery delivery in China is a rapidly growing market. Beijing-based Meituan, and Shanghai-based Ele.me are the leaders in the market (Ele.me was acquired by Alibaba), leaving Meituan to be the 4th largest Chinese internet company next to (Alibaba, Tencent, and Baidu). Focusing on service and quality to remain a player in the food delivery market. Read more here to learn about their goals.

Mailman X is a China digital consulting agency for the travel industry. Reach out here for more information.