2023-11-22
In a panel focused on “Product Development Strategy for Chinese and European Tourism Markets”, industry experts shared their experiences and insights, exploring the trends and product innovations in these two major tourism markets. The discussion ranged from digital technology to cultural experiences, and from transportation to accommodation services, with a focus on how strategic product development can foster the robust growth of tourism in China and Europe.
Moderator: Tiago BRITO, Visit Portugal Tourism Director for P.R.China
Panelists:
GE Yongqi, General Manager of Hainan Tourism Investment & Development Co., Ltd.
CHEN Baiyu, President of Guangzhou Lingnan Group Holdings Company Limited, Secretary of the GZL Party Committee
Mika CUI, Co-Founder of Qyer, CEO of ROCA Cultural Tourism
SUN Lei, Senior Manager of Sales Management Department of China Eastern Airlines Corporation Limited
TIAN Yu, General Manager Greater China of Rail Europe
Eddie YANG, Asia Director and China Chief Representative of Netherlands Board of Tourism & Conventions
Dialogue Transcript:
Moderator: Let’s start by sharing cases and future plans for tourism product development in the Netherlands and Hainan.
Eddie YANG: Product development is an ongoing process. I’ll share a few cases from the perspective of the Netherlands Board of Tourism & Conventions (NBTC). Prior to the pandemic in 2019, we implemented a youth strategy, redefining tourism as a never-stagnant industry, that is, tourism is not a destination but a means. This strategic adjustment results in positive impact on the entire Dutch tourism industry.
The pandemic posed challenges, especially in the terms of how tourism can create opportunities and improve local lives. NBTC focuses on how tourism can bring tangible benefits to local residents. For instance, KITO, a waterside village, saw an improvement in local bus services due to the influx of Chinese tourists, despite the pandemic nearly halting the local bus route 70. This not only facilitated tourist access but also benefited local residents, especially children. This sustainable tourism example shows that while attracting tourists, it also creates jobs and benefits local residents, a key point in our product development.
GE Yongqi: Hainan is often associated with blue skies, white clouds, and beaches. However, compared to other tropical islands, Hainan is lagged behind in the development of maritime, aquatic, underwater and rural tourism products. As an international tourism and consumption destination, Hainan needs to enhance its appeal, particularly to international and upper-middle-class tourists. Hainan Tourism Investment, as a provincial tourism enterprise, focuses on filling these gaps in product development.
In recent years, we’ve developed three product lines. First is the upcoming Hainan’s round-the-island tourist road, offering an alternative to tourists who previously only flew directly to Sanya. This “National Highway No. 1”, connecting the east and west lines, opens new opportunities for tourism development. Second, we’re focusing on lifestyle developments. We plan to launch cultural, commercial, and tourism products in Hainan’s 18 counties and cities. For instance, we’ve acquired a commercial complex in Haikou to transform it into a multifaceted lifestyle space. Third, we’re addressing our weakness by collaborating with various theme IPs and brands. These are the main directions of Hainan Tourism Investment’s recent developments.
Moderator: What should we do to provide more attractive tourism products for the Sino-European market, particularly in terms of transportation?
SUN Lei: Since March 2023, there has been a surge in flight capacity for China’s inbound and outbound flights, with Sino-European routes fully restored to the pre-pandemic level. CHINA EASTERN has expanded its reach to 11 European cities, extending flights to Ningbo, Wenzhou, Shandong, and other cities. Aviation and tourism are interdependent, and we are eager for more collaboration. As a player in traditional industry, CHINA EASTERN is adopting new concepts and technologies at the business and technical levels. For instance, we’ve signed a Special Pro-rate Agreement (SPA) with Deutsche Bahn AG (DB), offering more convenient choices for passengers. This approach of seeking new partnerships has seen positive impact on the market recovery.
On the technical front, as a significant carbon emitter, CHINA EASTERN has been involved in discussions on the EU’s carbon emission trading scheme since 2007. We’ve made progress in sustainability by using sustainable fuels, new energy equipment, and reducing resource waste, and we aim for further progress in technology and business for sustainable development.
TIAN Yu: Rail Europe is responsible for the distribution of train tickets in the worldwide context. Unlike the aviation industry, Europe’s train system is highly differentiated, with precise operations and distribution. The European train industry is undergoing a top-down transformation, as the EU aims for carbon neutrality by 2050. Member countries have agreed on a 200 billion euro train infrastructure deal. This means more investment in train infrastructure, connecting different national railway systems. In R&D, many transnational trains are being developed using renewable energy and new technologies.
In rail distribution channels, Rail Europe has developed the world’s most advanced paperless, real-time distribution system over the past three years. This system plans to integrate over 300 major European train operators – essentially establishing a GPS system for trains from scratch. Currently, it has integrated over 200 operators and is pushing for various reforms.
Moderator: As professionals in the tourism industry, your innovative approaches are vital for future business development. Could you introduce your company’s product innovations?
CHEN Baiyu: As one of China’s largest outbound tour operators, Lingnan Group Holdings’ GZL has introduced a number of changes to the supply side of its outbound travel offerings this year. First, we focus on providing tourists with more free time, allowing for customized experiences on top of group tours with increased product flexibility. Second, we offer cultural, culinary, and engaging activities, integrating tourists more into local life. Third, as more people choose group tours again for deeper experiences in single countries or destinations, GZL plans to launch 80 new products in 2024, enabling Chinese tourists to revisit Europe multiple times. Fourth, we’re introducing more outdoor, adventure, and study tour products in collaboration with our clients. Lastly, we’re committed to providing more supports to tourists, including safe payments and reliable after-sales service. These reforms come after listening to the voice of the customers and continuous innovation.
Mika CUI: Qyer, established in Europe, was probably one of the first companies to offer outbound independent travel services. In terms of business innovation, we’ve restructured to create ROCA Cultural Tourism, empowering our outbound business to support domestic destinations in reaching international markets. This helps balance inbound and outbound tourism, promoting sustainable development in the tourism and global markets. For airlines, bringing more tourists to China is beneficial for sustainable development. Additionally, Qyer’s business has extended from B2C to B2B and government partners, including cross-industry collaborations for destination branding, outdoor apparel, cosmetics, etc., through 1+1 marketing strategies. These are the new changes in Qyer’s business and products, though it takes time to prove it works.
Moderator: Please share the efforts made in the Netherlands in terms of community content and deep experiences in tourism.
Eddie YANG: Post-pandemic, changes in consumer habits have posed challenges to tourism product development. One challenge for the Netherlands is how to let tourists experience the country in a Dutch way, making travel a localized lifestyle. Another is to increase tourists’ awareness and participation in existing tourism products, especially those combining cycling and train travel. The Netherlands is integrating bicycling and trains in tourism, like cycling to tulip fields in spring or tandem biking with children to museums in summer. These initiatives aim to extend experiences beyond just visiting tourist spots.
GE Yongqi: Hainan Island can learn much from the Netherlands, as it has the potential to become a cycling island. While experiential tourism products like skydiving, hot air ballooning, and rock climbing have been introduced in recent years, it is too early to say they are mature, especially in the aspects of diving and fishing. Hainan Tourism Investment has established a marine company specializing in water and marine activities, acquiring a space to build a company dock recently. Future plans include sea ranches and marine hotels. As Hainan’s tourism investment operator, we hope to enrich the product portfolio through extensive cooperation.
Moderator: What efforts have CHINA EASTERN and Rail Europe made to provide faster, more comfortable, and low-carbon products?
TIAN Yu: European transportation shows a trend of collaborative synergy, with different transport modes suited to varying journey lengths. For journeys under 500 kilometers, trains are preferred for their environmental friendliness, energy efficiency, and time-saving. Europe’s high-speed rail system is advanced, and countries are actively subsidizing and promoting passenger flow for carbon neutrality. Business travel policies mandate train travel for journeys under 5 hours, and airports are phasing out short-haul flights. Rail Europe looks forward to more collaboration with airlines to offer combined air-rail travel, providing better choices for tourists while fulfilling our carbon reduction commitment.
SUN Lei: Airlines and railways compete but emphasize collaboration for journeys under 500 kilometers. CHINA EASTERN signed a strategic cooperation agreement with CHINA RAILWAY in 2000, rolling out domestic air-rail travel products. In June this year, our app launched a combination of international long-haul flights and domestic high-speed trains, offering more choices to passengers. Future cooperation between aviation and railways should be closer, complementing each other’s market gaps for mutual benefit. Despite differences in high-speed rail pricing principles and airline business philosophies, CHINA EASTERN has achieved one-stop sales and hopes to overcome challenges to provide one-stop services, including baggage check-through and passenger protection. This is a key project for us, and we hope to make progress soon.
Moderator: Data is crucial for understanding consumer behavior, helping tourism professionals better analyze demand and devise marketing strategies for revenue growth. Could you share measures related to tourism data analysis?
Mika CUI: As an Internet platform, Qyer focuses on data and technology applications, especially with our itinerary assistant product. By analyzing user-generated content, including Points of Interest (POI) locations and reviews, we help tourists easily plan international trips. Qyer also uses data algorithms to create unique guides, achieving efficient order conversion rates.
CHEN Baiyu: Digitalization is an indispensable part of tourism, with a primary focus on user-friendly interactions and high-quality payment experiences. GZL’s dual middle ground data centers show diverse customer needs, leading to the launch of age-specific products like “Play by Age” and “Play with Peers”, catering to different age group preferences. For family tourists, we offer synchronized entry and exit services, meeting the personalized needs of families with two or three children. Data enables traditional enterprises like GZL to better capture market voices.