1 Travel Market Insights Get China Ready Presented by: Scott Johnson President Travel Market Insights Inc. Get China Ready – Research… ONE Travel Conference for Shopping, Dining & Cultural Tourism January , 2015 Hilton McLean Tysons Corner, Virginia(Washington DC)

2 Travel Market Insights Who is Travel Market Insights International Travel: Inbound, WITHIN, and THROUGHOUT USA. Consumer Insight –Actual visitors to USA Trade Insight –China Travel Trade Barometer Strategic Analysis –Retail, DMO’s, Attractions Optimal Market Distribution –CCR Analysis Matrix Shift Matters –Travel Monitor Why = Analysis

3 Travel Market Insights Get China Ready Research China outbound travel – always transforming Change requires adjustment Adjustment requires research and analysis

4 Travel Market Insights Putting China Into Perspective China Headlines: –Huge potential: 98 million border crossings in 2013 Behind The Headlines: –Border crossings are not equal to travel

5 Travel Market Insights Putting China Into Perspective China arrivals projected to increase 172% (USDOC,NTTO Forecast) China will be the top overseas visitor market to the USA

6 Travel Market Insights Behind the Headlines USA?

7 Travel Market Insights Perspective - Behind the Headlines

8 Travel Market Insights /13 China Key Shifts Key Market Shifts from China to USA: Business travel continued to contract, leisure grew in Fewer Chinese visited multiple destinations – more visited only one destination in Package travel and travel to visit friends and family declined. Chinese visitor’s length of stay in the USA was shorter in 2013 compared to 2012 (down 5%). Key Drivers: Demand: more FIT, independent and experiential travel. New Policies: Anti-corruption campaign and Tourism Law. Net Effect: Increased market share to icon cities (NYC, LA, and San Francisco). Fewer business travelers, visiting fewer destinations = Good for destinations visited, but lower geo-equity. Less spend on hotel, dining, beverages due to anti- corruption campaign. Growth in leisure as a share of visitors with more FIT/Holiday travel = shorter stay and decrease in geo-equity. Trade restructuring (Airlines, Operators, Agents, Inbound TA).

9 Travel Market Insights Distribution Shift

10 Travel Market Insights China Travel Trade Barometer 2015 Travel Product Demand

11 Travel Market Insights China Travel Trade Barometer 2015 New U.S. and China Visa Policy Influence on booking for travel products to U.S. Promotion/Sales on travel products to U.S. Due to the new U.S. and China visa policy 92% of the trade reported bookings would increase! 96% of the respondents indicated they would promote and sell product focused on the new policy.

12 Travel Market Insights China 2015: Drivers and Outlook 2015 Outlook USA outpaces most for arrivals and spending. Continued investment in U.S. property/businesses and student educational travel. China-based companies expand web/social for “FIT” travel. FIT travelers will book (somewhat) familiar destinations. Shorter trips – focus on one, two and maybe three destinations. Vacation/Holiday travel increased. Business travel refocused. Key Drivers Approved Destination Status (ADS) policy Demand Shift Tourism law – more professional Anti-corruption campaign Visa Changes Increased Flight Capacity Distribution Expansion – traditional, web, mobile, social

13 Travel Market Insights China Ready Research  China Travel Trade Barometer  Custom Consumer Analysis – China to your destination and competitive destinations (all USA)  Chinese Student and Education Travel to USA  China Reports: Leisure, Business, First-time Visitors  China Annual Shopping Study: in-depth, brand, destination specific (actual visitors to USA) Contact:

14 Travel Market Insights Market Shifts – Always Changing

15 Travel Market Insights Scott C. Johnson President Travel Market Insights Inc. Phone: Web: