been set up by Aman Resorts founder Adrian Zecha and operating the Chedi and Setai brands. Ahn Luh aims to be a lifestyle brand epitomising contemporary China with influences of cultural tradition to relate to upwardly mobile Chinese consumers. In essence, the concept marries internationally accepted standards of quality with distinct, local features. Each resort will be unique in its design with the first due open in Chengdu. While in the long-term, the goal is to develop Ahn Luh hotels outside of China to capture the outbound market, the immediate goal is develop and grow the brand in the region. We are also seeing a phenomenon where new hotel brands are born in China. Does this mean that companies are using China as a testing ground for new products and services? Shangri-La Hotels & Resorts, which enjoys the highest brand recognition amongst Chinese consumers and as such has become a hotel of choice for those travelling abroad, has launched its Kerry brand in Shanghai and Beijing. Kerry Hotels incorporate high-energy restaurants and oversized gyms for younger affluent Chinese. Another example is former Hyatt Hotels CEO Bernd Chorengel, who has unveiled BC Fine Living as part of the high-end residential development, MOMA, in Beijing. A few years earlier, Hong Kong-based Swire Hotels opened its first property, The Opposite House, in Beijing’s high-end shopping area
Sanlitun (also developed by Swire). This was followed by The Upper House in Hong Kong, and a second East hotel soon to open in Beijing. Which strategy will yield the best results
in leveraging the China tourism boom? Will Chinese consumers truly identify with brands like Hualuxe and seek it out over the countless other Chinese-owned hotel brands? Will they become brands of choice for their ability to deliver culturally relevant services? Or will developing China-focused brands make Chinese consumers feel alienated?
Keeping in mind that Chinese outbound
travellers will grow to over 100 million by 2020 according to the World Tourism Organisation (UNWTO), for international companies to develop new brands in China before expanding them internationally might be an interesting strategy, if they are able to execute in China. Having a culturally relevant brand is great, but not being able to communicate it in a culturally relevant way might be the demise of a successful strategy.
Jens Thraenhart is the co-founder of Dragon Trail, publisher of China Travel Trends, and chair of PATA China. Dragon Trail is an award-winning travel technology and digital marketing firm to help travel and tourism organisations to reach and connect with Chinese consumers. For more information, please visit
www.dragontrail.com
3. Develop partnerships: Relationships are critical in China. Hotel groups such as Fairmont, Interstate, Louvre Hotels, and NH Hoteles have formed partnerships that enable a China execution.
4. Network in China: Building relationships with people, having access to information, and being part of a bigger association such as PATA (Pacific Asia Travel Association) will offer great benefits.
5. Follow Chinese travel trends: Understanding the changing Chinese consumer and the growing tourism landscape in China is critical. The second edition of the Essential Guide to China Travel Trends, published by
ChinaTravelTrends.com and produced in partnership with Dragon Trail, COTRI, and PATA can be downloaded at
www.chinatraveltrendsbook.com.
Top five points to consider when developing in China:
1. Get ready for Chinese consumers: Work with companies like COTRI (Chinese Outbound Tourism Research Institute) to get a China Quality Label certification.
2. Use the internet, mobile, and social media to market to Chinese consumers: Work with digital marketing agencies that understand the Chinese market, are focused on travel and hospitality, and have intimate relationships with Chinese OTAs, social media sites, search engines, as well as niche and major websites.
Sleeper China 2012
49
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