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www.Buy2Greece.com – Travelport embraces collaborative approach launching new travel services
Travelport, a leading travel commerce platform has announced new collaborations with four innovative travel companies, which are utilising Travelport’s Universal Application Programming Interface (Universal API), to power new services that give their customers a greater level of information, choice and flexibility when it comes to booking travel.
Travelport has adopted an open approach to connectivity that allows its customers fully-flexible access to its platform, enabling travel agencies and intermediaries the ability to design their own customised user interfaces. Travelport’s state of the art Universal API allows OTAs, corporate booking tool providers or other travel consultants, to pull together content delivered from multiple sources into a cohesive display for the travel buyer. This allows for more effective search, comparison, reservations and payments. It also means that they can understand an airline’s full value proposition, for example, including its branded fares and ancillaries, in the same way as a travel agent connected to Travelport’s point of sale solution, Travelport Smartpoint, would.
This open platform concept is attracting some of the best and brightest developers from around the world to build exciting new products on Travelport’s travel commerce platform. The approach is a key part of Travelport’s strategy to change its relationship with travel providers from being cost-focused to value-focused. In 2015, a broad network of approximately 1,100 developers utilised our Travelport Universal API, to create their own applications.
The customers that Travelport has collaborated with on these new services include:
- Travel with Lia, a fast growing South African-based corporate travel booking tool which is using Travelport’s Universal API to enable its customers’ travellers to make changes to their travel on the move, easily and efficiently, while keeping within their corporate policy. Travel with Lia is the first Travelport customer to implement this new ‘automated exchanges’ solution. The process not only saves time, effort and aggravation for the traveller, but also frees up the corporation’s travel management company to focus on adding extra value to their travellers’ overall experiences.
- Skylord Travel Plc a UK-based Online Travel Agency has become the first OTA in Europe to offer its customers direct access to the branded fares and ancillaries on offer from the airlines on Travelport’s travel commerce platform. This will enable them to better understand all of the services that are included in different fare types. Skylord was able to complete the development and make available this rich content from over 150 airlines in a matter of a few days, as a result of the service being normalised across airlines and easy to implement using the Travelport Universal API workflow.
- OneTwoTrip, one of the leading international OTAs in the Russian market, is the first Travelport customer in Russia to display airline’s branded fares and ancillaries on its website, so its customers can better understand an airline’s full offering prior to making their bookings. With the introduction of branded fares through Travelport’s Universal API, OneTwoTrip can offer customers a more comprehensive service, increase ease of booking, and help ensure customer loyalty.
- Travel Loop is a Spanish company that specialises in the development and distribution of travel management technology solutions. Its ‘Pursuit’ self-booking tool is now utilising Travelport’s Universal API to integrate Travelport’s shopping functionality, offering its users the ability to access ancillary products.
Ujjwal Sehgal, Director, Skylord Travel Plc. commented: “We have been in the travel business for 33 years and our focus has been serving travel agents and retail clients across the UK with fares and ticketing services. With the introduction of branded fares and ancillary content from Travelport, we can really improve our service. We want to be innovative and offer our agents and consumers the same information for the relevant travel alternatives that they previously would only receive by going to the airline’s website. Branded fares and ancillary content gives us the ability to service our customers, by enabling them to be more efficient and informed. It’s a win, win, win solution for Skylord, our customers and the airlines.”
Arno Van Rensburg, Senior Developer at Touchlab which develops on behalf of Travel with Lia said: “Enabling a self-service itinerary exchange solution for our travellers will bring major benefits for Travel with Lia. Our corporate travellers frequently have to change their travel plans and instead of the traditional and cumbersome process of having to connect with an agent, our customers can now perform a full ticket exchange on their mobile or desktop Travel with Lia application.”
JP Ephithite, Travelport’s Senior Product Manager, Open Platform commented: “Innovation is the common thread that ties the likes of Travel with Lia, Skylord Travel, OneTwoTrip and Travel Loop together. And with Travelport, innovative travel companies can realise their ambitions by developing travel solutions on our open platform. Our ability to help increase their revenues reinforces the value proposition of our travel commerce platform when compared to alternative distribution channels.”
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www.Buy2Greece.com – 5 ways the middle-class is powering China’s future
5 ways the middle-class is powering China’s future
By Juwai, 06 April 2016
$6.5 trillion – that’s how much the China’s middle-class consumer market will be worth by 2020.1
Driven by a $2.3 trillion increase in consumption by China’s middle-class between now and 2020, China’s consumer spending is projected to outstrip developed markets by 2020 – surpassing expected growth in the US, Japan, Germany, the UK, and France.
More astonishingly is the fact that this is slated to happen, even if China’s GDP slows to 5.5%.
The world’s largest consumer market by 2020
By 2020, China will reign as the biggest consumer market in the world.
According to Boston Consulting Group (BCG)2, China’s vast and rapidly-growing middle-class (earning more than $15,600 p.a.) is estimated to have totalled 298 million households in 2015.2
Fast-forward another five years, and China’s middle-class is projected to swell to 338 million households by 2020, charting a 13.4% increase.2
In comparison, the US – the world’s largest consumer market – had a total of 124.6 million households across all class demographics in 2015.3
So in the case of China’s middle-class, we are clearly talking about something significant.
In fact, by delving deeper into the numbers, BCG reckons the most significant growth will come from China’s class of ‘high-speed’ consumers (earning more than $22,800 p.a. and seeing 5%+ annual income growth) whose population will grow from 81 million in 2015 to 142 million in 2020, an increase of 75%.
How China’s middle-class driven future is a five-horse carriage
We see the middle-class story as a five-horse carriage, driven by five distinct, powerful, and persistent forces that have to be factored into a go-to-market business strategy for China:
#1 Inland regions: the new growth frontier
As China urbanises and businesses increasingly migrate inland from coastal cities, so inland regions will see a surge in their population of middle-class households.McKinsey estimates that the share of China’s middle-class living in inland regions will grow from 13% in 2002, to 39% in 2022.4
What this means is that more and more lower-tier cities will rise as hotbeds of business and consumer activity, as middle-classes emerge in fast-developing cities away from China’s main business hubs of Shanghai, Beijing, and Guangzhou.
Prime examples would be second- and third-tier locations, such as Kunming and Hefei.
#2 Online: China’s dominant sales channel620 million out of China’s 668 million netizens are mobile internet users – 90% who surf the net via smartphones and mobile devices.5
This is significant because the trinity of wider internet usage, increased adoption of smartphones, and swifter product delivery in China will see its e-commerce account for $1.6 trillion in online sales in 2020.1
That’s a 267% increase compared with $600 billion worth of online transactions recorded at the end of 2015!1
And once again, it’s the middle-classes – those comfortable with credit card purchases, affluent enough to spend, and busy in their professional lives – who will form the core of China’s online consumer market.
#3 China’s young big-spenders
China’s younger generations who are aged between 18 and 35 are increasingly becoming internationally-minded and tech-savvy. This, in turn, will help form the core of China’s future consumer base, accounting for 53% of total private consumption in 2020 in comparison with the 43% of now.1
Put simply, these age groups have grown up amid prosperity, and aren’t as frugal as older generations.
Consumers aged between 18 and 35 are spending 14% more per year, on average – twice the pace of consumers over 35.1
Also, these consumers are comparatively more sophisticated, as they are more likely to have had an international education, plus a longer exposure to brands and consumer culture in both China and around the world.
#4 The 50+ demographic: a 528 million-strong market by 2025
Yes, younger consumers spend more but their share of the population will decline in the years ahead as China ages and older age groups account for a larger share of the market.
By 2025, the population aged over 50 years will account for 38% of the population or a total of 528 million people, compared with 24% and 328 million in 2010, according to the World Bank.6
While this may mean that the labor force will shrink, it also means that a much larger market for companies with products targeting the older population. That’s why companies like Vanke, China’s biggest real estate developer, are investing heavily in properties to market to the older generation.7
After all, it’s these segments of the population that are sitting on vast amounts of savings8, having built them up during China’s early boom years when the one-child policy was in effect.
With expansion in healthcare and pension systems, as well as China’s new two-child policy, savers will have less reason to horde money and more options on which to spend, thus increasing the sales potential from this growing demographic group.
#5 Internationally minded + increasingly connected Chinese
2015 witnessed a record-breaking 120 million tourists from China heading overseas, while 2016 is expected to see 139.2 million Chinese embarking on trips abroad.9
Together with increasing air, rail, and sea connections between China and the rest of the world; easier visa procedures for international travel; and China’s growing corporate footprint, it will become more commonplace for Chinese citizens to travel out of China, whether for work, studies or play.
With only about 4% of China’s population are passport bearers, a percentage that Goldman Sachs expects will grow to 12% in ten years time, this is one segment worth keeping an eye on for sure – especially as Chinese tourism has been known to propel international property investments.
The consumer target of the 21st Century
Already, the world’s largest MNCs are rooted to this demographic and enjoying their slice of the pie, thanks to their focus on China’s middle-class consumer story:
- Apple: The world’s top consumer company booked revenues of $60.9 billion in the Greater China region in 201510 – a 61.9% growth y-o-y that makes China the fastest growing region for the company’s sales in the world.
- Mercedes Benz: The oldest luxury car firm in the world saw mainland sales total 386,634 units in 2015, up 29.1% y-o-y11, making it the company’s largest market globally.
- Uniqlo: Part of the giant Japanese Fast Retailing empire, Uniqlo has steadily built a solid market share in China, taking a 1.6% share of the specialised retail market and eclipsing established brands like Zara and H&M. The company reported a 46% y-o-y increase in revenues between August 2014 and August 2015.12
Ultimately, with a potential consumer market of around 270 million households worth a whopping $6.5 trillion, this is one market that you just can’t afford to miss.
3 quick tips to marketing better to Chinese
While tackling the China market may be as daunting as it is enticing, remember that there are lots of routes to success. Here are three pointers to help you improve your China strategy:
For starters, build an online presence and try to focus one or more of the trends outlined above. If you want to target the growth potential of inland regions, look at search trends and find out what properties buyers in second-and third-tier cities are looking at, and match your offering to that market.
In the case of older generations, consider both the importance of generational investment to Chinese buyers, and the growing potential for retirement-related property investment from China’s increasing 50+ population.
Alternatively, tailor your offering to the younger market, who are obsessed by overseas education at top universities, and are increasingly aspiring to both an international lifestyle and a globe-hopping career trajectory.
It’s subsectors like these that will not only constitute a $6.5 trillion consumer economy, but what’s been estimated as a potential $661 billion outflow of property investment from mainland China into overseas properties over the coming years.
With stakes as high as these, and with the tools available for you, this is a market opportunity that is simply too good to pass up.
Sources: 1. Boston Consulting Group: The New China Playbook; 2. BCG: Tale of Two Chinese Consumers 3. Statista: Number of Households in the U.S.; 4: McKinsey: Mapping China’s Middle Class; 5. China Internet Network Information Center (CNNIC); 6. World Bank: Databank; 7. Forbes; 8. Notre Dame University: Demographic Patterns and Household Saving in China; 9. Forbes; 10. Apple: Earnings Releases; 11.. Daimler Benz: 2015 Sales Report; 12:CKGSB Knowledge: Uniqlo in China: New Threads
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www.Buy2Greece.com – How Chinese tourism spurs overseas property shopping
China is the world’s largest outbound tourist market1, yet only 4% of China’s population hold a passport.
What’s more, this 4% alone lavishes nearly $200 billion each year abroad – more than any other country in the world.2
And now, Goldman Sachs predicts 12% of China’s population will be passport bearers in ten years time2– imagine the colossal impact worldwide when that happens.
Chinese embark on explosive shopping spree abroad
Interestingly to note, beyond their quest for experiential holidays, Chinese travellers are also significantly influenced by their shopping aspirations and preferences.
53.6% of outbound Chinese jetsetters cited shopping as their main reason for travel, lavishing 55.8% of their overall budget on shopping abroad.3
This is because foreign consumables purchased overseas are wildly popular with Chinese due to the common mind-set that they are guaranteed to be authentic, and offer greater quality at lesser prices.3
For instance, Chinese tourists in France are enamoured over French luxury and cosmetics brands4, while those visiting other parts of Europe have shown a marked penchant for buying luxury watches, Zwilling JA Henckels cookware, and Lamy pens.5
Similarly, products featuring a “Made in USA” label are heavily favoured with Chinese6 – those travelling to the US tend to flock towards American luxury brands, skincare and cosmetics such as Benefit, Kiehls, and Clinique, and health supplements from GNC and Puritan’s Pride.5, 6
Over 81% of Chinese ultra-HNWIs address their health needs through diet and exercise, and 48% maintain health by regularly consuming health products.7
In Japan, where Chinese tourists once made headlines for snapping up Japanese electronic-heated toilet seats, medication is the latest hot item for Chinese visitors to buy.8
A study by the Japan National Tourist Agency revealed that 63% of Chinese visitors bought cosmetics and perfume, 55% bought food, spirits, and cigarettes, while 52% bought over-the-counter (OTC) medicines and toiletries last year.8 In fact, Chinese tourism expenditure in Japan soared by more than 200% last year.9
All this boils down to one thing: Chinese want better quality at lower prices, and they are finding it overseas.
Holiday hunting for overseas real estate
Unsurprisingly, this want extends to property too, whereby more and more Fly n’ Buy Chinese are snapping up homes while holidaying abroad, as residential property overseas offer much more value for money.
36% of China’s HNWIs have already invested in property abroad, and 41% of them intend to invest in overseas real estate within the next three years – 66% who plan to invest in residential properties.10
More importantly, where are China’s wealthy looking to invest in?
According to Juwai Data, the top 10 countries most enquired by Chinese buyers on Juwai.com are the US, Australia, Canada, New Zealand, the UK, Thailand, Spain, Germany, Japan, and France.11
Interestingly enough, six out of these 10 countries were featured on our last article about the top 10 holiday destinations for rich Chinese in 2016.
This corroborates with Juwai research, which notes the Chinese trend of investing in homes in travel destinations they have fallen in love with.
Banking on Chinese tourism wave
Developers, companies, and corporate investors as well have deduced that the value of Chinese holidaymakers is too lucrative to ignore.
From hotel to transportation to retailers, even Chinese developers and corporate investors are jumping on the bandwagon too. Where Chinese globetrotters are flocking to for holidays, that’s where they’re seeking to invest in hopes of tapping into the demand born from the massive surge of Chinese tourists.
Chinese tourists have been touted the fastest-growing tourism market in the world.1
A prime example is Japan, where Shanghai-based Yuyuan Tourist Mart has just forked out 18.3 billion yuan to acquire part of a major ski resort in Hokkaido.9 The Greenland Group also recently partnered up with Laox – the largest duty-free chain in Japan – to purchase a commercial complex in Chiba for US$60 million.9
In short, China’s outbound travelling boom is helping drive its offshore property investment as well – both residential and commercial.
One thing’s for certain, as what Forbes hails as the “largest international tourism source market in terms of trips and spending”12, China’s outbound travellers will transform global tourism and real estate worldwide.
3 tips to appeal more to Chinese buyers
As Chinese outbound travellers grow in numbers, what can you, as a broker and real estate agent, do to tap into this opportunity that Chinese travellers provide? Here are three swift tips:
- Build brand awareness online: 80% of Chinese luxury consumers gain information on luxury brands online, of which 60% named WeChat and Weibo as their primary source of information.13With property falling under the luxury purchase category, this means if you want Chinese buyers, first you must appear behind China’s Great Firewall to be seen online in front of them – and in the right channels.
- Shape to suit the market: This means adapting and localising your products, such as translating your website and listings into Mandarin. The Home Medicine Association of Japan has gotten it right – with Japan’s pharmacies becoming a must-see attraction for Chinese tourists, they’ve launched a Chinese-language website offering information on 80 products from 26 membership companies to cash in on the Chinese wave.8
- Understand Chinese mindset: Winning the hearts of well-heeled Chinese buyers require a better understanding of their needs beyond the basics. Gain in-depth insight into Chinese buying behaviour and preferences with Juwai IQ data service, which helps you customise the right product to match what they want in terms of location, intent, motivation, and budget.
Sources: 1. China’s National Tourism Administration; 2. Goldman Sachs on Bloomberg; 3. World Travel and Tourism Council; 4. China Luxury Advisors; 5. Xinhua News Agency; 6. Fortune; 7. Hurun Report “China Ultra High Net Worth Report 2014-2015”; 8. SCMP; 9. SCMP; 10. Hurun Report “2015 Annual Chinese HNWIs Asset Allocation White Paper”; 11. Juwai Data, Q4 2015; 12. Forbes; 13. Bain & Company’s “2015 China Luxury Market Study”
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