TECHNOLOGY
Chinese travelers also have a propensity to interact via mobile social media , with apps such as WeChat , developed by Tencent , and Weibo . “ Both [ are ] considered ‘ super apps ’ that combine the functionality of many U . S . apps into one ,” such as YouTube , Twitter and Facebook , Emanuelo explains , adding that both WeChat and Weibo provide multiple ways for a hotel brand to interact with customers , “ an important way for us to reach existing and potential Chinese travelers .”
WeChat , the dominant social platform in China with some 300 million active users , is more of an ecosystem , according to Federico González , president and CEO of Radisson Hospitality AB . “[ It ] offers payments , e-commerce and CRM — so it ’ s a channel we cannot afford to ignore ,” he says .
PAYMENT OPTIONS Closely tied to mobile is payments , which are increasingly transacted using mobile phones . A Nielsen survey found that 69 % of Chinese travelers used their mobile phones to make payments during overseas trips in 2018 . According to the report , mobile payments accounted for 32 % of transactions made by tourists abroad .
“ Most Chinese consumers are used to paying their bills via Alipay or WeChat ,” says González . Launched in China in 2004 , Alipay is a third-party mobile and online payment platform developed by Alibaba Group . Alipay , with an estimated 900 million users , is considered the world ’ s number one mobile payment service organization .
GUEST EXPERIENCE Brands are also using technology to make improvements that make Chinese visitors feel at home . Take Radisson Hotel Group ’ s plan to offer Chinese television channels and Chinese newspapers via the Radisson Blu One Touch app , available at The Radisson Blu Hotel , Frankfurt , the first of a group of co-branded hotels following the Group ’ s acquisition by Jin Jiang International and Sino-Cee Fund late last year .
These experiences will definitely include artificial intelligence . “ AI is rapidly growing in popularity across the Chinese market and has already been implemented in a wide range of hospitality settings ,” González says . “ It highlights the extent to which Chinese-speaking travelers are comfortable around technology-driven hospitality .”
Still , Western brands continue to adjust to Chinese travelers . Just last year , in its report “ Chinese tourists : Dispelling the myths ,” McKinsey & Company noted that the assumption that these tourists only want to pay with cash is incorrect . In fact , Chinese outbound tourists are inclined to use Alipay or WeChat Pay . Support for both payment platforms “ is a must ,” wrote McKinsey . “ Platforms such as Alipay and WeChat Pay have become the norm for transactions among travelers less than 45 years of age , with an average usage rate of 43 %,” the report observed , adding that “ the current payment methods offered by Apple Pay , UnionPay and traditional cash transactions won ’ t be sufficient in the coming years .”
Wyndham ’ s Emanuelo concurs . “ Acceptance of mobile payment is critical for Chinese customers , as 71.4 % of Chinese netizens are using mobile payment in daily life ,” he says . “ That functionality in our sites is vital to the success of our channels
“ OUR INDUSTRY HAS TO TRULY UNDERSTAND THE SCALE OF THE OPPORTUNITY CHINA REPRESENTS AND ACT ACCORDINGLY .”
FEDERICO GONZÁLEZ , PRESIDENT AND CEO , RADISSON HOSPITALITY AB and reaching the traveling class for years to come , during both the booking process and hotel on-site payment .”
FORMING ALLIANCES Between messaging and payment apps , it ’ s obvious that brands need to work closely with the giants of Chinese tech , including Alibaba , Tencent and Baidu , as well as the dominant online travel agencies , including Fliggy ( owned by Alibaba ) and Qunar . One way to accomplish this is through partnerships .
“ Our industry has to truly understand the scale of the opportunity China represents and act accordingly ,” says González . “ Our aim is for Radisson Hotel Group and its brands to make the most of that opportunity for growth within the Chinese market by partnering with our new owner Jin Jiang International . Ultimately , we have to be the first name on the minds of Chinese-speaking guests when they travel abroad — and we are working incredibly hard to achieve this .”
It ’ s worth underscoring that Chinese travelers are not a monolithic group . They are increasingly segmented , with a rapidly expanding middle class . This underscores why global hotel groups like Hilton , Hyatt and Wyndham are focusing on broadening their products through strategic M & A and new midscale brands .
According to the United Nations World Tourism Organisation ( UNWTO ), Chinese tourists overseas spent US $ 277.3 billion in 2018 , up from around US $ 10 billion in 2000 , an increase of 2,670 % in just two decades . By comparison , America ’ s outbound tourists spent just US $ 144.2 billion in 2018 .
Another competitive reality for Western hotel brands is the fact that Chinese tourists , like their Western counterparts , have widely embraced sharing-economy platforms like Airbnb . On the plus side for hospitality brands , McKinsey found that Chinese outbound travelers “ are making more long-haul trips , which means the length of stay will increase .”
50 hotelsmag . com October 2019