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Chinese tourists don’t just duty-free shop in the U.S.: They also invest in real estate ($100 billion in 2016)

Wealthy Chinese family searching a home in the U.S. - China Elite FocusThe number of Chinese tourists traveling the globe has increased significantly for the last ten years, making them the largest group of travelers in the world. Now, thanks in part to a recent agreement between the U.S. and China to extend visas for short-term business travelers, tourists and students, the U.S. could see an increase in Chinese travelers in the near future.

This trend is supported by research from the latest Chinese International Travel Monitor (CITM) from Hotels.com which reveals the U.S. is the second most popular destination for Chinese travelers to visit in the next 12 months (behind France), with popular U.S. landmarks like the Grand Canyon and the Statue of Liberty topping travel wish lists.
The CITM research also identifies that, while cities in Asia Pacific remain the most popular (82 percent of Chinese travelers have visited in the past 12 months), visitors to Europe and America have increased with a year over year growth of 25 percent and 11 percent, respectively. These destinations were particularly popular with millennial travelers, with 42 percent visiting Europe and 29 percent visiting America in the past 12 months.

“The CITM reveals that the United States is one of the top five countries Chinese travelers visit the most,” said Josh Belkin, vice president and GM of the Hotels.com brand. “With tens of thousands of places to stay across the U.S., like distinctive boutiques, spacious vacation rentals and familiar chains, our site and mobile app have the perfect places for Chinese travelers of all ages and lifestyles.”

In 2016, there were 122 million outbound Chinese tourists – four percent more than in 2015 and a massive 74 percent more than in 2011, when the first CITM was published. China is already the largest source of international travelers for many countries – despite the fact only 10 percent of the population had passports in 2016.

“Chinese travelers in the United States tend to be more affluent than those who choose other destinations”, said Pierre Gervois, CEO of China Elite Focus Magazines LLC and Founder of the STC magazine, a luxury travel digital publication in Chinese Mandarin. “Real Estate investment in the United States is now the #1 real reason – and rarely stated in surveys – for affluent and wealthy Chinese outbound travelers, as they have acquired for $100 billion in U.S. Real Estate in 2016”

Source: CITM, hotels.com, STC magazine, Chinese Tourists Blog

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It’s now easier to pay at U.S. Retailers’ stores for Chinese travelers

A Chinese tourist paying with WeChat Pay - China Elite FocusjpgCitcon, the integrated payment and marketing platform, announced a strategic partnership to enable brands in North America to accept WeChat Pay and Alipay.

WeChat Pay and Alipay are the most popular and convenient payment options for Chinese consumers to purchase goods and services. Adding these payment options to retail point of sale allows brands to now tap into an even larger revenue stream from Chinese consumers who are the largest spender, and fastest growing traveler segment to the North America. The platform enables brands to optimize revenue growth without the costs and hassles of establishing a business entity in China.

WeChat Pay is a fully integrated payment solution within WeChat, the world’s most popular mobile social communications service with 936 million active users and Alipay is a super lifestyle app run by Ant Financial Services Group with more than 450 million active users. Together these platforms jointly account for 90% of China’s mobile payment market share. Both super apps allow users to book a trip, hail a taxi, order food, purchase movie tickets, pay for water and electricity bills, manage investments, perform transactions on e-commerce websites and more to create a cashless society.

“China is changing fast. Mobile payment is the new frontier of commerce and China is leading this trend. By providing an integrated and easy-to-use payment solution, Citcon is creating a future that takes payment and marketing to the next level, empowering global merchants to drive business growth with millions of Chinese consumers.”said Chuck Huang, Founder and CEO of Citcon

As the first payment partner of WeChat Pay and Alipay, in addition to major credit cards such as UnionPay, MasterCard, Visa, Discover and American Express, Citcon is a one-stop shop for merchants to connect with Chinese consumers and accept payments anywhere. Citcon’s stand-alone mobile point-of-sale (mPOS), easy-to-integrate API and software products empower merchants to optimize growth both online and offline, with an easy and affordable rate compared to credit card processing. In addition to the convenient payment solutions, merchants will also be able to gain in-depth consumer behavior insights, manage business performance, run marketing campaigns, guides users to merchants stores while saving their shopping preferences for future visits and manage lifetime customer loyalty programs.

“Accepting WeChat Pay is a smart move for U.S. Retailers. That will definitely help with the category of budget-conscious Chinese travelers who choose to travel in groups. But they must keep in mind that the most affluent categories prefer to pay with their international credit cards, who show their status when traveling overseas and offer more perks in terms of miles and reward points.” commented Pierre Gervois, CEO of China Elite Focus Magazines LLC, a media group specialized in luxury travel publications for very affluent Chinese outbound travelers.

Source: Citcon / Chinese Tourists Blog

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Luxury brands might have forgotten that wealthy Chinese customers needed a good in-store service.

Gucci Store - china elite focusKering, the French luxury group, is adapting its sales approach to better cater for increasingly sophisticated Chinese customers, according to group managing director Jean-François Palus.
“We’ve changed the way we conduct our business in China and the way we address Chinese clients when they’re abroad,” said Mr Palus at the Financial Times luxury conference in Lisbon on Tuesday.
“We learnt that a very serious risk is to become complacent, to think that it’s an easy business, an easy customer base, easy to open stores with good products and then people will come in. That was true for a moment but Chinese customers have become sophisticated and highly demanding and we need to adapt.”
Chinese consumers account for more than 30 per cent of global luxury consumption, according to consultant Bain, which is forecast to increase to 35 per cent by 2020.
How much of global luxury consumption Chinese consumers account for, according to Bain, a figured set to rise to 35% by 2020
In the past, luxury houses relied on rapidly opening up stores in China to fuel growth amid rampant Asian demand for their products, but this approach has been undermined by an economic slowdown in China.
In the final quarter of last year, Chinese consumers showed signs of returning, although notably shopping more in mainland China, while tourism in Europe has slowed in part owing to recent terrorist attacks.
In China, Kering is retraining shop assistants and replacing email communication with WeChat, China’s most popular social media platform with more than 800m daily users.
Mr Palus said: “The way the Chinese treat very important clients is different — they have a very candid approach to wealth.”
He pointed to a recent visit to a Gucci store in Beijing where the store manager told him he had hired the daughter of a billionaire to work with clients in the shop “because to talk to wealthy people in China, you need to be wealthy”. He added that bad feng shui in a shop can hurt client traffic.
According to Pierre Gervois, the Founder and Publisher of the STC magazine, a luxury travel publication for High Net Worth Chinese global travelers “HNWI Chinese clearly signaled about  five years ago that they wanted to purchase luxury goods outside China, to enjoy the full experience of the iconic flagship stores in London, Paris or New York”
“This new trend has not been immediately recognized by luxury conglomerates such as LVMH and Kering, that led to an inflation of store openings in China in the years 2010/2015, with little customer traffic, insufficient staff training, and in some cases damaging consequences in terms of brand image.”, Mr Gervois added.
Kering posted a 31.2 per cent rise in revenues to €3.57bn in the first three months of 2017, lifted by a 34 per cent jump in sales from luxury activities.
Among its brands, Gucci led the way, posting record revenue growth of 51.4 per cent for the three months — the latest sign of improvement under creative director Alessandro Michele. Other Kering brands such as Brioni and Bottega Veneta were doing less well than the likes of Saint Laurent.
Mr Palus said: “The market has become more difficult and the pace of growth has slowed down. In this environment you need to take market share from the competition.”
Kering was not looking at acquisitions, added Mr Palus. “We have so much on our plate with helping our existing brands tap their potential . . . we don’t have enough time to think about M&A.”
He said that Kering was also still adapting to digital platforms. “We need to open ourselves to what’s happening in other industries and other countries. Our industry needs to become less product-centric and become more customer-centric.”

Source: The Financial Times.

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Millennial Chinese travelers to the U.S. favor Gervois Hotel Rating to choose their hotel

According to the Future of Outbound Travel in Asia Pacific (2016 to 2021) report, Asia Pacific markets are expected to grow by 6 percent annually from 2016 to 2021.

Not surprisingly, the largest outbound travel market in 2021 is expected to be China with 103.4 million trips – constituting 40 percent of all Asia Pacific outbound travel, nearly four times that of the #2 and #3 markets being South Korea (25.6 million) and India (21.5 million) respectively.

Mastercard Chinese travelers - Gervois Hotel RatingEric Schneider, Senior Vice President, Asia Pacific, Mastercard Advisors, commented, “The burgeoning middle class is driving the growth of outbound travel in Asia Pacific, along with other trends such as the emergence of the Asian millennial traveler and on the other end of the spectrum the senior traveler, as well as new technology and infrastructure developments. Asia Pacific travelers will continue to fuel global tourism growth in years to come, providing vast opportunities for businesses to benefit through the development of products and solutions that seek to improve their overall travel experiences.”

Woman in a car reading Gervois magazine - vertical“The United Sates is durably installed as the #1 outbound destination for Mainland Chinese travelers, for years to come.  With a multiple entry independent leisure visa easier to obtain for Mainland Chinese tourists, They see the U.S. as a leisure destination of choice”. said Pierre Gervois, Founder & President of Gervois Hotel Rating. “I’m pleased to see a growing number of Millennial affluent Chinese travelers relying on Gervois ratings to choose their U.S. hotel prior to make a booking on Chinese hotel booking websites”, he added.

According to the study, outbound travel is forecast to grow faster than real GDP. Outbound travel growth tends to be higher than real GDP growth for emerging markets compared to developed markets (except for Japan) where outbound travel growth is much closer to their forecasted real GDP growth. Emerging markets such as Myanmar (10.6 percent vs. 7.7 percent), Vietnam (9.5 percent vs. 6.2 percent), Indonesia (8.6 percent vs. 5.7 percent), Thailand (4.8 percent vs. 3.1 percent) and China (8.5 percent vs. 6 percent) are expected to grow faster than real GDP.

By 2021, all developed markets in Asia Pacific (except for Japan) will have a ratio of over 100 percent for outbound travel trips to total number of households. Households in Singapore (693.6 percent), Hong Kong (248.9 percent) and Taiwan (232 percent) have the highest propensity to travel abroad.

Gervois magazine - Marriott HotelsAmong emerging markets, Malaysia is expected to record the highest ratio of 198.7 percent by 2021, whereas India (7.3 percent), Bangladesh (7.4 percent), Myanmar (14.6 percent) and Indonesia (15.4 percent) are among the lowest, indicating strong growth potential for outbound travel in these markets over the next ten to twenty years, assuming an increasing propensity to travel is combined with a healthy increase in households.

Mastercard, www.mastercard.com, is a technology company in the global payments industry.  We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories.

Gervois Hotel Rating, www.gervoisrating.com is a New York based hotel rating system for United States hotels publishing guest experience centered reviews and unbiased ratings. Gervois Hotel Rating is independent from hotel chains and hotel groups and is not affiliated with any hotel booking company.

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Gervois Hotel Rating releases today its 2017 ratings of the finest hotels in the United States

Gervois Rating Launch March 2017The Gervois rating system is a new hotel rating system created by Pierre Gervois, a NYC based media entrepreneur, Publisher of the iconic luxury travel STC magazine. Pierre Gervois has an extensive experience in luxury hotels and has reviewed countless properties all around the world for the last twenty years.

“Over the years, I have been disappointed by the numerous existing hotel rating systems” said Pierre Gervois. “Too often, there is a tendency to give too generous ratings to hotels members of luxury hotels chains, and to underrate independent boutique hotels”, he added.

Based on these facts, Pierre Gervois created an entirely new hotel rating system, purely based on the sole merits of each property, considered alone, regardless of its association to a hotel chain, an affiliation program, other rating systems, or online reviews. Every hotel is rated professionally and independently, without any preconception about the property.

“Most of existing hotel rating & reviewing systems are produced by companies having a direct financial interest in bookings from the hotels they are rating, hence overly positive ratings and an inflation of stars, diamonds, laurels, gold medals and awards that do not always reflect the reality” added Pierre Gervois.

In order to achieve a complete independence from the hospitality industry, Gervois Hotel Rating do not receive any advertising revenues or commissions on rooms bookings from hotels, hotels chains or online travel agencies.

“Gervois Hotel Rating is on the discerning traveler’s side, not on the hotel booking business’ side” concluded Mr Gervois.

The Gervois Hotel Rating rate hotels according to five essential criteria: Location, Building, Atmosphere, Dining and Service, each rated on a 20 points scale. The addition of the points give the final rating, on a 100 points scale.

This rating system allows a greater precision and flexibility in the complex task of rating a hotel that might have many highlights but also some flaws that need to be clearly designated for a transparent information.

84 U.S. properties have been curated and rated over a one year process, through inspections carefully conducted by a small group of international frequent travelers, all reviewed and validated by Pierre Gervois.

“Chinese travelers are incredibly discerning now, and we’ll soon launch a Chinese Mandarin version of our ratings”concluded Mr Gervois.

The 2017 Gervois Hotel Ratings are available on http://www.gervoisrating.com

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China-U.S. tourism on growth trajectory

Chinese family at beach - China elite focusChina-U.S. tourism is on a growth trajectory and can help promote closer people-to-people links between the two countries, CEO of China’s top online travel service provider Ctrip has said.

Ctrip sees huge growth potential for Chinese tourists traveling to the United States, Jane Sun said at Columbia University Business School’s Chazen Institute of Global Business.

Last year, a record of 1.3 million people booked air tickets to the United States on Ctrip, she said. The company served in 2016 more than 160,000 Chinese tourists who traveled to the U.S. by providing package tours and other tour products, she added.

GERVOIS magazine Advertising and sponsored content opportunities“People are entrepreneurial in China and want to explore opportunities in other markets. That’s why there is a lot of demand for travel from China to Australia, Europe, New Zealand and the U.S. along with other areas,” said Sun, who was recently rated by Forbes China as one of China’s most powerful business women.

Ctrip made strategic investment in three U.S. tour operators to support the demand by Chinese for trips to the United States last year.

Sun said that there was still room for growth and that her company wanted to further expand its market share.

“I have lived in both the United States and China and I cherish the friends I have in both nations. Travel can be a bridge between the two countries,” she said.

Gervois magazine - Marriott HotelsCtrip, which had an initial public offering on the Nasdaq in 2003, is an industry heavyweight with over 30,000 employees and market valuation of about 25 billion dollars.

“Ctrip is doing a great job to promote the U.S. as a luxury leisure destination” added Pierre Gervois, CEO of China Elite Focus Magazines LLC, a New York based publishing company specialized in luxury travel magazines in Chinese Mandarin. “I have a lot of admiration for Ctrip’s business model.  When I was living in Shanghai, I have been one of their customers for all my plane tickets reservations”

Statistics showed that the number of Chinese tourists traveling to the U.S. jumped by 14.7 percent in the first three quarters of last year from a year earlier, while the number of American tourists traveling to China increased by 7.3 percent during the same period.

Source: Xinhua

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With more Chinese tourists traveling abroad, hotels expand their chains in the U.S.

Chinee couple - China Elite FocusMore and more Chinese tourists are visiting the US and other foreign destinations and hotels in China are also expanding their chains in these places. In 2015, more than 2.5 million Chinese came to the US, and that figure rose significantly in 2016, which was designated “2016 China-US Tourism Year”.

One hotel group aiming to cash in on this rising trend of Chinese tourists visiting abroad like never before is Shanghai-based Green Tree Hospitality Group, which has five hotels in Arizona and California in the US. Kevin Brooks, a co-managing director, said the company operates more than 2,000 hotels in China that range from budget or limited-service options to five-star designations. He said that a Green Tree budget or limited-service hotel in China is similar to a Holiday Inn Express in the US. To quote Chris Petroff, co-managing director, “About 18 months ago, the company decided to expand in the US; and last year, we converted five hotels to our brand. In 2017, we have embarked on franchising.” Petroff said that the company is hoping that existing franchise operators in China will aim for US location to spread the brand name.

Gervois magazine - The new travel magazine for millennials travelers in the United StatesDriven by an increasingly growing middle class, Chinese outbound tourists are expected to reach 150 million in 2020 from 122 million in 2016, with an estimated average annual growth rate of 5.09 percent, according to the China National Tourism Administration. Another growing segment of Chinese overseas travelers are parents sending their children to study in the US. Alex Xu, the founder and chairman of Green Tree, envisions the company as a global brand, “We are also exploring other countries in Asia and Europe for expansion.” In addition to traditional inns, online marketplaces like Airbnb, which enables homeowners, renters and others to offer accommodation to travelers, are also expected to benefit from rising Chinese outbound tourism.

Source: travelandtourworld.com.

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