Visitor volume increased 10 times in 4 years,188bet mobile giants still need to solve three major problems to conquer the Chinese market

Big Traffic Author of this article: Li Haiqiang 2018-04-08
China’s 188bet mobile market growth slowed down for the first time in 2017,The market begins to pull back,Negative growth is expected in 2018。Has China’s 188bet mobile market peaked??What is the future direction of China’s 188bet mobile market?

March 5-8,188bet mobile industry executives gather in Fort Lauderdale, Florida for the annual global 188bet mobile conference Seatrade 188bet mobile Global,The CEOs of the world’s major 188bet mobile giants each expressed cautious but optimistic views on the Chinese market。

“China is likely to become the world’s largest 188bet mobile market in the future,” said Arnold Donald, CEO of Carnival 188bet mobile Lines。

"I think,The Chinese market has huge growth potential。" MSC Cruises Executive Chairman Pierfranceso Vago said to other guests at the roundtable forum when talking about the industry situation。

“The Chinese market is relatively stable,A lot of work is gradually being carried out,(still needs some time to observe)," said Frank Del Rio, CEO of Norwegian 188bet mobile Line Holdings。"I think,Major 188bet mobile companies regard current efforts as a long-term investment,We all have the patience to wait for the market to explode。”

CBS News Travel Channel Editor-in-Chief Peter Greenberg serves as the forum moderator,He joined the discussion of these company executives in a teasing tone。

"Some people generally say,The situation is stable,Still needs a period of observation,This seems to be saying,The patient is still in the hospital and has not yet fully recovered,” he pointed out。

Then the development status of China’s 188bet mobile market is really like a patient staying in the hospital for observation,It will still explode suddenly,Enterprises need to act quickly to enter in advance?

After years of rapid growth,After growth slowed last year,188bet mobile shipping capacity in the Chinese market is expected to decline in 2018。According to 188bet mobile Lines World Association (CLIA) statistics,About 6% of the 188bet mobile industry’s capacity will be deployed in China in 2018。

The number of Chinese 188bet mobile tourists has experienced explosive growth in recent years.According to CLIA statistics,Only 21 Chinese tourists took cruises in 2012.670,000 people。By 2016,This number has reached 2.1 million people,Most tourists set sail and 188bet mobile within their region。According to Financial Times,The number of 188bet mobile tourists in China is expected to reach 2.6 million in 2017,This number is expected to drop to approximately 2.4 million this year。Estimated,The number of tourists taking 188bet mobile ships worldwide in 2017 reached 25.8 million。

As the number of 188bet mobile ships increases - much of the increase comes from North American operators looking to acquire more middle-class customers,188bet mobile operators can no longer charge as high as they did when product supply was low。

"Although the capacity has increased,But earnings dropped。" Liu Zinan, President of Royal Caribbean International 188bet mobile Lines China and North Asia Pacific, talked about the industry situation in this region at the Seatrade Forum,“The Chinese market cannot redefine the income level of the entire industry。”

One year ago,Affected by South Korea’s deployment of THAAD missiles,Resulting in a significant drop in the number of 188bet mobile ships to South Korea,188bet mobile companies have to choose Japan which is less popular,Product prices also suffered heavy losses as a result。

In that conflict,Skysea Cruises, a joint venture between Royal Caribbean Cruises and Ctrip, is operating a 188bet mobile with a capacity of 1,800 passengers,This 188bet mobile ship has been specially redesigned for the Chinese market。Last month,Royal Caribbean and Ctrip announce that the 188bet mobile will cease operations at the end of this year。

“Tianhai has made many correct decisions,We are proud of their achievements," Rob Zeiger, global chief communications officer for Royal Caribbean Cruises, wrote in an email,“But for Skysea Cruises,It is very difficult to make a breakthrough and establish brand awareness in the competition with major global 188bet mobile giants that have entered the Chinese market。”

Carnival 188bet mobile Line and CSSC established a joint venture in 2017,Both parties plan to build a new ship that will be launched in China in 2023,This plan is currently in progress,Carnival Corporation will be responsible for operating and managing these 188bet mobile ships。Although new ships will continue to enter the Chinese market in the future,But not as often as before。

"To paraphrase Mark Twain,Those reports that indicate that China’s 188bet mobile industry has entered a dead end are exaggerating the facts,” said Harry Sommer, Vice President of International Affairs and Development, Norwegian 188bet mobile Line,"What we are seeing now,It may just be a self-correction of the market caused by fluctuations in supply and demand。”

Based on interview at Seatrade 188bet mobile Global conference、Forum discussion and 188bet mobile company earnings conference call,Major 188bet mobile companies still need to solve these three major problems to conquer the Chinese market。

China’s 188bet mobile market has unique needs,99% of tourists choose premium cruises

In the mature 188bet mobile market,Tourists often focus on brands,They may choose a happy-themed Carnival 188bet mobile、Celebrity 188bet mobile Line with modern and upscale facilities、Regent Sever Seas Cruises in low-key luxury style,Or other distinctive cruises。

But Skysea Cruises CEO Ken Muskat said,In China,Branded cruises are not as popular as some specific cruises,The key is that many celebrities also tend to choose non-branded cruises。He also said,Travel agencies play a big role in tourists choosing 188bet mobile brands。

“Chinese tourists have always preferred the largest and newest 188bet mobile ships,This factor is the biggest driving force behind the significant growth in 188bet mobile capacity and brand awareness in the Chinese market。" Muskat wrote in an email,“Although the pursuit of the latest and greatest is still the main driver of the Chinese 188bet mobile market,This trend will continue for several years,But as consumers become more and more rich in cruising experience,They also began to pay attention to the choice of destination、Pay attention to value for money、Value the quality of food、Factors such as comfort and family atmosphere。”

The company that has benefited the most from the Chinese market’s enthusiasm for the “latest and greatest” is Norwegian 188bet mobile Line,Last year the company launched a new ship in China with a total of 3883 cabins。Del Rio said,Norwegian Joy is the highest rated ship in the company’s fleet,It is also the 188bet mobile ship with the highest passenger load,The 188bet mobile ship achieved profitability in the first year after entering the Chinese market,It is expected that the profit situation will be better this year。

"Nevertheless,This 188bet mobile ship has not yet reached its maximum efficiency,We are all working hard to tap its maximum potential,Understand the real needs of Chinese consumers。”He said,“We have conquered other markets,We are confident that we can conquer this market in the future。”

Royal Caribbean International is also taking advantage of Chinese tourists’ pursuit of the latest cruises,Preparing to send a brand new ship to China next year to replace the current relatively new 188bet mobile ship。The 188bet mobile ship that will arrive in China in 2019 is called Spectrum of the Seas,The ship will be equipped with facilities that can interact with tourists,For example, a private karaoke room、Major Chinese cuisines, etc.。

In China,The vast majority (99%) of tourists choose to take a luxury 188bet mobile,This shows that the market has not reached the maturity level to provide different price options for different types of tourists。According to industry trade organization statistics,In 2016,Luxury、High-end and adventure cruises account for less than 1% of total passenger trips。

The reason,Different from North America,Chinese travelers have not yet developed the habit of taking cruises。

Liu Zinan, head of China market for Royal Caribbean International Cruises, said,In the United States,About 70-80% of 188bet mobile tourists have taken a 188bet mobile before。But in China,This proportion is only about 15%。

"In the United States,People go on a 188bet mobile every two years,Cruising has become part of their lifestyle,”He said,"In China,People haven’t considered it as a way of life,But think of it as something new you want to try。”

According to 188bet mobile Lines International Association (CLIA) statistics,Chinese tourists don’t stay on board for long,The average 188bet mobile length of tourists is 5 nights。In comparison,North American tourists stay on board for about a week,European tourists stayed on board for nearly 9 days。

Routes are seriously homogenized, and restrictions on coastal cruising need to be lifted

In China,Since long-distance routes are not very popular,The places that 188bet mobile ships can go to are very limited。With the changes in South Korea routes, one of the favorite short-haul destinations for Chinese tourists in early 2017,The economy of some destinations is beginning to fall into a downturn。Many 188bet mobile lines can only turn to Japan,But Japan is not as popular as a 188bet mobile destination as South Korea。

“Today’s 188bet mobile lines have really become too homogeneous and too monotonous。" Liu Zinan said。

Sommer said,The changing political situation on the Korean Peninsula is not a good thing for the entire 188bet mobile industry。

“We like areas where there is no change,”He said,“We like predictability,We like stability,We want to know what will definitely happen in the future。We can accept the good news,You can also accept bad news,But we don’t like unexpected news。”

MSC Cruises Executive Chairman Vago said,He hopes that China will lift restrictions on foreign 188bet mobile ships carrying passengers between Chinese ports in the future。He thinks,Chinese tourists also want to take cruises to many destinations in China,In this way, the growth momentum of the 188bet mobile market will be stronger in the future。

“If 188bet mobile ships could 188bet mobile along the coastline,Then the future growth potential is huge,China’s 188bet mobile market will also usher in better development opportunities,”He said。

Wang Hong, Secretary of the Baoshan District Committee of the Shanghai Municipal Government, said at the SeaTrade Global Conference Roundtable Forum,The Chinese government is evaluating lifting restrictions on cruising、The possibility of enriching domestic 188bet mobile routes。

188bet mobile product distribution method lags behind

188bet mobile companies usually sell most of their cabins to travel agencies on a full ship charter basis,The travel agency then sells the products to individual or group tourists。But 188bet mobile operators are eager to change this sales model,Especially when wholesalers cannot sell cabins at predetermined prices,When approaching the operator to renegotiate the price or request a deferred payment。

Carnival 188bet mobile Line announced during March earnings call,The company has been trying to shift its distribution model from highly concentrated charters to one that sells to more group tourists。In other words,188bet mobile products will not be available for booking as far in advance as before,This way 188bet mobile operators should ultimately be able to generate more sales revenue。

"We think,This can help the company reduce risks,Optimize income," said Arnold Donald, CEO of Carnival Corporation。

Muskat said,Although the charter model is still very popular in the 188bet mobile industry,But independent travelers and group orders are beginning to increase。

“Driven by this trend,More and more small travel agencies will have more opportunities to work directly with 188bet mobile lines,No longer can you only book 188bet mobile products through wholesalers。On the other hand,188bet mobile companies can also take this opportunity to collect more real-time booking information,Help companies manage 188bet mobile lines from a revenue perspective,”He said,“This distribution method also makes the company realize the importance of marketing and promoting themed cruises to customers in the event industry or communities with common interests,Slightly extended booking window,It can also improve the company’s profitability。”

Sommer from Norwegian 188bet mobile Line says,As demand grows,This new distribution system will gradually adapt to the market,But 188bet mobile lines need to do more to stimulate demand,Encourage more travel agencies to join the ranks of selling 188bet mobile products。

“Obviously,The Chinese market has a mature and innovative travel agency distribution system,”He said,“But this system is not necessarily very mature and complete for the entire 188bet mobile industry。”

Liu Zinan said,Despite the slowdown in the number of independent travelers,But he believes that this is the most promising distribution model for the Chinese 188bet mobile market in the future。

“Even if free travel accounts for a large proportion,There will still be some problems in the Chinese market in the future,”He said,“We need to vigorously promote the transformation of the group travel market into the independent travel market。However,This is an ecosystem change,Take a long time to complete。”

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