Prospects for the coming summer season 2016 – Shanghai

10.06.2016

The overall outlook of travelling to Finland

According to the UNWTO’s report, China will still be the biggest source market for outbound travel in the world in 2016, although the growth of economy in China is slowing down. The terrorism in Europe have very negative influence among tourists in China, especially FIT. According to the first quarter report of 2016 from Skyscanner, FIT from China dropped 15 % to Europe market compared with the first quarter of 2015. However, other markets, such as East Asia, South East Asia, North America, etc., all got significant growth by Chinese FIT.

After Chinese New Year, China outbound travel to Europe is quite struggling (especially Western Europe). Too many newly-opened flight routes from China to Europe (which create too much capacity), the low season, and bad macro economy situation are the major reasons for the troughs.

Summer is coming and Nordic products (4 Nordic, Nordic+Russia, Nordic+Iceland) are still popular in the market. We can still look towards Chinese tourists to bring increase to Finland for the coming season. However, the percentage of increase can be a bit smaller than last year.

Summer camps, family groups (6 pax, 9 pax) and small groups are more and more popular regarding Finland products, which will also cover Lakeland & Archipelago regions. FIT to Finland will also grow in the summer time due to the promotion of Stopover Finland program and more distribution channels of FIT products among OTA&TO in China.

Long term trends

What do you see as main tourism trends in your market area?

  1. Online travel market in China continues to grow. Tourists tend to shift from offline to online, especially young generations.
  2. In-depth (fewer destinations in one package) products are getting more popular.
  3. Travel mode of Chinese is shifting from sightseeing+shopping to experience+vacation+shopping. Shopping is still a big purpose of traveling.

 

How should Finnish travel industry companies utilize these each of these trends? 

Product development

  • It is useful to go through all the existing products/packages in the market (products that end customers can get) to see how to gain more overnights or try to fit in the existing packages. To be different from existing elements, attractive, profitable for tour operators, enhancing the selling point of the package can be the key to convince tour operators to include your products into the existing one.
  • Another method is to learn from the popular products from other destinations in order to develop the suitable and attractive products accordingly.

Marketing

  • To actively join the regional or national(VF) marketing actions can be efficient and cost-saving marketing approach.
  • Online marketing, especially Social Media Marketing can also be a good marketing strategy.

Sales channel co-operation

  • To work more with OTA/OTS from China
  • To strengthen the relationships with existing TO partners (sales call or frequent follow-up can probably bring more sales leads and opportunities.)

 

David Wu
Visit Finland Representative China: Shanghai