China Travel E-business

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China Travel E-business
Huang Zhiwen President Mangocity.com June 2011
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Agenda
1? The Development of Internet Industry in China
2? The Development of E-business in China 3? The
Development of On-line Travel Business in
China 4? The On-line Booking Process 5? The
Introduction of Mangocity.com and Strengths
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Rapid Development of Internet Industry in China

• In China, the internet user reached 457 million
  in 2010, 19.1 annual growth. It
• is expected that the population will reach
  750 million by 2015.
• The penetration rate of internet hit 34.3,
  with an increase of 5.4 than 2009.
• As of end 2010, the internet population in
  China was around 23.2 of the
• worlds internet population and 55.4 of
  Asias population.

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Rapid Development of Internet Industry in China

• China enjoys a good internet development. The
  penetration rate in the Eastern provinces,
  coastal and some provinces in the mainland, which
  contain Beijing, Shanghai, Guangdong, Zhejiang,
  Tianjin, Fujian, Liaoning, Jiangsu, Xinjiang,
  Shanxi, Shandong, Hainan, Chongqing, Shanxi , is
  much more higher.
• The penetration rate in Beijing, Shanghai and
  Guangdong are 69.4, 64.5 and 55.3 respectively.

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Agenda
1? The Development of Internet Industry in China
2? The Development of E-business in China 3? The
Development of On-line Travel Business in
China 4? The On-line Booking Process 5? The
Introduction of Mangocity.com and Strengths
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Strong Growth Momentum of E-business
Industry in China
Items 2010 2015
On-line shopping population 161 million 290 million
Percentage of On-line transaction amount over the total amount of retail transaction 3.20 5.60
The on-line shopping market scale 489 billion 1500 billion
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Strong Growth Momentum of E-business
Industry in China
Item China Japan Korea America
The penetration rate of on-line shopping 40.1 53.60 57 70
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Agenda
1? The Development of Internet Industry in China
2? The Development of E-business in China 3? The
Development of On-line Travel Business
in China 4? The On-line Booking Process 5? The
Introduction of Mangocity.com and Strengths
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Great Potential of Travel E-business Market in
China

• In 2010, the on-line travel booking market size
  was 6.16 billion,
• 58 increase from 2009 at 3.89 billion.

• It is expected the on-line travel
• booking market will reach 9.25
• billion a 50 increase. By 2014,
• the market size will exceed 20
• billion.
• The young, highly educated,
• mid and high income class has
• become the core group for on-
• line travel services, they prefer
• self-plan and relied less on travel
• agency. Survey indicated that
• 75 of them select on-line service.

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Great Potential of Travel E-business Market in
China Air ticket

• Passenger volume

Item 2010 2011
Passenger Volume (billion) 0.267 0.3
Year-on-year 15.80 13

• In 2010, air tickets issued through e-channel
  sale recorded 60.9million
• tickets, 23 of total tickets issued. It will
  reach 27 in 2011 and 30
• in 2012.
• In Mangocity.com, over 50 tickets was booked
  via website and others via
• call centre.

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Great Potential of Travel E-business Market in
China Hotel

• Number of Hotel by star (As of Dec 2010)

Item Total quantity Five Star Four Star Three Star Two Star One Star
Number of Hotel by star 14587 572 2149 6278 5182 406
Proportion 100 4 15 43 36 3

• In 2010, the room occupancy volume was around
  552 million
• room /night. 5 to 20 of the room sale was
  conducted through
• internet.

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Great Potential of Travel E-business Market in
China Travel Package

• Market Size

Item 2010 2011
Overall income 1.44 trillion 1.6 trillion
Domestic tourist 2.1 billion 2.34 billion
Inbound tourist - 0.145 billion
Outbound tourist 57.39 million 70 million

• Market Share

Item America Europe India China
Market share of on-line travel business in overall travel market 60 50 30 5
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Agenda
1? The Development of Internet Industry in China
2? The Development of E-business in China 3? The
Development of On-line Travel Business in
China 4? On-line Booking Process 5? The
Introduction of Mangocity.com and Strengths
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The Process of Booking Travel Products to
Australia on-line
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2
3
4
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Planning
Booking
Travelling
Entertainment
Reviewing
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The Process of Booking Travel Products to
Australia on-line
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Planning

• Search for travel information to destination
• Enquire, compare prices of air tickets, hotels,
  itinerary
• Collect information of destination weather,
  culture,
• transportation, restaurants, shopping

• Searching

• Community ,Forum

• Vertical searching

• Comment

• Other travel information

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The Process of Booking Travel Products to
Australia on-line
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Booking

• Confirm the time and itinerary
• Book travel products
• FIT air ticket, hotel, car rental, train
  ticket, visa
• Guided Tour enroll through Travel Agency
• Complete Transaction

OTA
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The Process of Booking Travel Products to
Australia on-line
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Travelling

• Depart according to itinerary
• Take note of flight status, weather and news of
  destination
• Refer to e-map for location of hotel, traffic
  condition

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The Process of Booking Travel Products to
Australia on-line
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Entertainment

• Accommodation, food, sight-seeing, shopping
• Share experience anytime, anywhere (microblog)
• Pay bills

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The Process of Booking Travel Products to
Australia on-line
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Reviewing

• Share travel experience, photos (Blog,
  Community)
• Rate the service of hotel, itinerary, tourist
  guide, booking
• service provider
• Word of mouth (relatives, friends, colleagues,
  web chat)

• Community, Forum

• Comment

• Microblog

• Word of mouth

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Strengths and Weakness of On-line Booking
Platform
Strengths

• Nationwide coverage
• Anytime, anywhere. No
• constrains of time and
• location(phone/mobile/internet)
• Convenient and fast. Booking
• process is standard and
• structured.
• Round the clock personalized
• service by travel consultants.

Weakness

• Ground support service is
• relatively weak.

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Agenda
1? The Development of Internet Industry in China
2? The Development of E-business in China 3? The
Development of On-line Travel Business in
China 4? On-line Booking Process 5? The
Introduction of Mangocity.com and Strengths
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About Mangocity.com
Mangocity.com was established in 2006 - a wholly
owned subsidiary of HKTCS. It serves as an
independent brand specialized in on-line travel
business and e-commerce platform. The company
adopts a 'website call centre service model.
It provides a spectrum of personalized,
value-added travel products to individual and
corporate. Products include FIT and guided
tours, air tickets, hotels, budget hotel and
accommodation, business travel management,
MICE, car rental, cruise, theme park tickets. The
website includes several functions such as
destination guide, community and forums, bonus
points mall, etc.
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Strengths of Mangocity.com

• Strong brand
• Sizable and quality member base - 6 million
  members
• Rich travel products with quality service
• Focus on travel consumers needs in travel
  planning, booking,
• transaction, departure and provide related
  service with good value
• Rich and multiple channels for marketing
  SEO/SEM, brand penetration,
• microblog marketing, group purchase,
  seckilling

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Strengths of Mangocity.com
Credit Card Offline Payment
Online Payment

• Support different
• payment methods
• (VISA?MASTER?UNIONPAY?
• Third-Party Payment)

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Mangocity.com would like to build a bridge of
Friendship and Communication between the China
and Australia tourism markets with the Australia
tourism industry counter-part. So as to enable
more Chinese to experience the beautiful,
natural and cultural scenery of
Australia. Working together with Australia
Tourism, We will get better and brighter tomorrow
for the China and Australia Tourism Industry.
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China Australia Just One Mango Distance!
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