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TO ENLARGE THE TRAVEL MARKETS Thesis (AMK)
Thesis (AMK)
Degree: Bachelor
Option
2010
Chunyang Wang
TO ENLARGE THE TRAVEL
MARKETS
– From Shanghai and Turku (Shanghai CITS, Ltd.)
Thesis
abstract
TURUN AMMATTIKORKEAKOULU
Training program name | name be approached: CITS Travel agency
Completion of the thesis | Pages: 60
Supervisor (s): Heinonen Laura Harriet
Author: Chunyang Wang
Abstract
The study of consumers’ behavior is significant to the construction of the
tourism brand, the loyalty of tourist and the improvement of tourist industry’s
competitive ability. The understanding of the six implications of tourism brand
and the tourist - experience’s three levels is the vital problems to solve. Tourists
are the center of brand, and the tourist industry should establish tourism brand
with tourists.
KEY WORDS:
Consumer Behavior; Tourism Brand; Brand Experience
BACHELOR´S THESIS | ABSTRACT
UNIVERSITY OF APPLIED SCIENCES
Degree programme | Specialisation: International Business
Date | Total number of pages : 21.04.2010
60 pages
Instructor(s): Heinonen Laura Harriet
Author(s):Chunyang Wang
TO ENLARGE THE TRAVEL MARKETS
This paper is made in order to make thorough analysis in current Chinese travel markets and
travel agencies, as well as the analysis on Turku’s travel markets, with which it can know the
feasibility in enlarge the travel markets for CITS into Turku.
In details, as the background information, the brief overview of history of China’s domestic travel
agencies and a brief description of Shanghai CITS in terms of its business and management
status are posed with the aim of getting enough supporting information. Further researches on
background have been placed in the appendix, including the information of Chinese Oversea
Travel Market, the information of Shanghai Travel Markets, More Information about CITS, and
information of Turku Travel markets. As the preparation of marketing research on the above
objective, theoretical structure about marketing and tourism are reviewed in terms of marketing
mix theory, sustaining developments in tourism industry, brand marketing, and SWOT analysis.
The research was mainly contained both secondary information and primary information, the
secondary information is acquired mainly from domestic books and journals in writing for the
introduction and analysis of Chinese and Turku’s travel markets, relative data will be collected
within the range of the topic in supports the findings of primary information as well as the further
analysis. Primary information is acquired from a semi-structured interview with on of the
marketing manager in CITS, current working in Shanghai. And 9 questions will be posed in
order to gather enough information for the CITS’ idea and desire in establishing abroad market.
After the research multiple analyses including the SWOT analysis on the Shanghai and Turku’s
travel markets, especially for the abroad touring market in Shanghai. Besides, the brand
strategy in CITS is been researched, together with its marketing resource in planning, and the
competition with other travel agencies.
Conclusion and final findings will be focused in four aspects summarized from the above
analysis, including the strengthening of macro-control in tourism market for Chinese Authorities,
the establishment of sustainable tourism development concept, and the accelerate product
development of tourism, the three aspects of analysis, in line with the suggestion for building
strategic alliance with abroad hospitality companies and government and NGOs, will make the
travel agencies have better performance in foreign traveling market, and as for CITS, the
expansion in Turku will be much smoother than it supposed to be.
KEY WORDS:
Consumer Behavior; Tourism Brand; Brand Experience
CONTENTS
1 INTRODUCTION
1
1.1 Background to the Research
1
1.2 Research problems and objectives
3
1.3 History of China’ s domestic travel agency
4
1.4 Description of Shanghai CITS
5
1.4.1 Business History & Market Position
5
1.4.2 Management & Staff
5
2 MARKETING AND RELATIVE THEORY
7
2.1 The Marketing Mix Theory 4 Ps
7
2.2 Sustaining Developments in Tourism Industry
9
2.2.1 Description on green marketing
9
2.2.2 Green consumption in China
11
2.2.3 Green tourism consumption
12
2.2.4 The connotation of green tourism consumption
12
2.2.5 Characteristics of green tourism consumption
13
2.3 Brand Marketing
14
2.3.1 Brief description
14
2.3.2 Types of Brands
15
2.4 SWOT Analysis
19
3 GUIDE FOR CITS TO ENLARGE THE OVERSEA TRAVEL MARKET
22
3.1 Methodology
22
3.1.1 Secondary information
22
3.1.2 Primary information – the interview
23
3.2 SWOT Analysis
25
3.2.1 Strengths:
25
3.2.2 Weaknesses:
26
3.2.3 Opportunities:
29
3.2.4 Threats:
30
3.3 Brand Strategy in CITS
30
3.3.1 Sound Performance
30
3.3.2 Detailed Brand Strategies in CITS
31
3.4 Researching And Identify The Market
32
3.5 Marketing Resource to Plans
32
3.6 Competition
33
3.6.1 The geographical nature
33
3.6.2 Tourism resources similarity or complementary nature
34
4 CONCLUSIONS AND DISCUSSIONS
37
4.1 Strengthen Macro-Control in Tourism Market
37
4.2 The Establishment of Sustainable Tourism Development Concept
38
4.3 To Accelerate Product Development of Tourism
39
4.4 Making Strategic Alliances Abroad
40
SOURCES
42
APPENDIX I: INFORMATION OF CHINESE OVERSEA TRAVEL MARKET
45
APPENDIX II: INFORMATION OF SHANGHAI TRAVEL MARKETS
46
Appendix 2.1. The travel market of Shanghai:
46
Appendix 2.2. Shanghai public status of cultural tourism consumption
49
Appendix 2.3. The trend of the travel of Shanghai people
50
Appendix 2.4. Market needs for Shanghai travelling
51
Appendix 2.5. Sampling of Shanghai touring market
51
Appendix 2.6. Current situation of Shanghai consumer behavior
53
APPENDIX III: INFORMATION OF CITS
54
APPENDIX IV: INFORMATION OF TURKU TRAVEL MARKETS
55
Appendix 4.1. Attractions of Turku
55
Appendix 4.2. The weather of Turku
56
Appendix 4.3. The culture of Turku
58
APPENDIX V: QUESTIONS FOR TELEPHONE INTERVIEW
60
FIGURES
Figure 1 Staff Qualification in CITS Shanghai Branch
Figure 2 Proportion of Tour Guides
Figure 3 SWOT Analysis Framework
Figure 4 SWOT Analysis – Solution offering
Figure 5 SWOT Analysis – SWOT Matrix
7
8
24
26
26
TABLES
Table 1 Product Information (Tour of Turku)
Table 2 Climate averages in Turku
9
61
1
1 Introduction
1.1
Background to the Research
After joining into WTO, China is now facing with the surging of massive foreign
capitals and lots of joints have been emerging in the domestic markets, which
makes the local travel agencies currently meeting worldwide competitive
challenges for the marketing management. In order to make more profits, lots of
local companies have started to pay attention to China’s outbound travel
markets and began to cooperate with foreign travel agencies.
According to the Nielsen China Outbound Travel Monitor, reported in 2008,
Chinese travelers spend 2,597 to 3,506 U.S. dollars on single oversea trips.
"With the rapid growth of the Chinese economy, the China outbound travel
market is expanding," said Grace Pan, head of travel and leisure research at
Nielsen (China outbound travel market expanding: survey [online, referred to 04,
05, 2008].).
Shanghai CITS, with a business history of over 50 years, it is now the biggest
international travel service supplier in Shanghai. Previously known as China
International Travel Service (Shanghai Branch), this company was founded in
1954, which makes it one of the oldest travel companies in modern China.
Shanghai CITS has long been engaged in overseas travelling services and
tourist receptions, which allowed it to accumulate rich experiences. However,
the business achievements and integrated strength of Shanghai CITS are
among the best of its sector in China. Since 1993 when China National Tourism
Administration began to keep records on the rankings of the national top 100
travel companies, Shanghai CITS has always been on the top of the list.
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
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As a mainstay of Shanghai’s tourism industry, Shanghai CITS upholds the
merits of sincere business management and quality service. As a result, it has
won attention and affirmation of the authorities within a broadened area. In the
35th and 40th anniversary of the founding of Shanghai CITS, Jiang Zemin, the
chairman of China made the following inscriptions respectively: developing
travelling industry will push economy growth, serve our societies better, and
strengthen the relationships among countries.
Turku is a nice city which is located on the southwest coast of Finland at the
mouth of Aura River. On the western coast, the seaport of Turku is the oldest
city in Finland and was once the most important city in the country. It is believed
that Turku came into existence during the end of 13th century which makes it
the oldest city in Finland. Turku was one of the most important centers of
Finland, for its beautiful senses and great nature. And it also owned the biggest
population in Finland until the end of 1840. Nowadays it is still famous for its
nice scenery, but also became the essential place for business and culture.
Turku's cultural and financial power makes Turku the seat of government here.
On the part of Turku’s geography, Turku is located at the mouth of the Aura
river in the southwestern corner of Finland, which covers an area of 245 km² of
land, spread over both banks of the river (Wikipedia [referred to 12.23.2009]).
The eastern side is popularly referred to as this side of the river, while the
western side is referred to the other side of the river. The city centre is on both
sides of the river, with the development of the society, the city centre has
changes so much.
With a population of about 300,000, the Turku Region is the third largest city in
Finland. The region includes, in addition to the city itself the following
municipalities: Askainen, Kaarina, Lemu, Lieto, Masku, Merimasku, Mynämäki,
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
3
Naantali, Nousiainen, Paimio, Piikkiö, Raisio, Rusko, Rymättylä, Sauvo, Vahto,
and Velkua (Wikipedia [referred to 12.23.2009]).
I have lived Finland for over three years, and I am working in Selija line as a
part time job, Shanghai as an international city in China, it grew so fast these
years, still Shanghai travel market is potential markets waiting for develop. In
this article I am going to demonstrate the advantages of these two cities and
going deeply marketing research in order to find a way which can develop
outboard market for Shanghai CITS, the local travel company from Shanghai.
It is necessary that to doing marketing research before a company going
outboard. The idea for this research proposal is to give readers a clear
understanding of how to get familiar with details of both two cities and our
company. There are various questions to be answered and it requires time and
effort to be able to answer to these questions:
•
How to identify the local market?
•
How to stimulate the needs of the market?
•
How to enlarge the travel markets from Shanghai to Turku?
Being able to answer to these questions is a huge step forward to launch
Shanghai travel market.
1.2
Research problems and objectives
Research objectives: The history of China’s domestic travel agencies. China is
one of the greatest countries in the world, and this paper, it will be discussed in
different aspects. We will describe the history of the travel, the culture, the
Chinese people’s attitudes towards the travelling, and the situation of the
overseas travel etc.
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4
The travel market of Shanghai: Despite of the financial crisis, the number of
oversea travelers in the Shanghai in reaching about 1.5 million, conditions are
expected to remain positive this year. With the income increasing, Shanghai
travel market has become the main oversea travel destinations of tourists (Pan
et al. 2009, 280).
The advantage of Shanghai CITS: Shanghai CITS, which enjoys a high level of
history and civilization in China, with a business history of over 50 years, it is
the biggest international travel service company in Shanghai. Previously known
as China International Travel Service Shanghai Branch founded in 1954, it is
one of the oldest travel companies in new China. Shanghai CITS has long been
engaged in foreign affairs services and tourist reception and has accumulated
rich experiences (CITS.com 2009, [referred to 2.2.2010]).
Research problems:
•
How to identify the market? It will be discussed from the semi-structured
interview and discussion of details about the travel market;
•
How to stimulate the needs of the market? It will be solved by the
different aspects of stimulating the travel needs. From the prices
advantages, brand promotion and transfer effects.
•
How to enlarge the travel markets from Shanghai and Turku? It will be
solved by the different aspects of stimulating the travel needs.
1.3
History of China’ s domestic travel agency
In August, 1923, Department Bank of Shanghai, one of the biggest investment
banks in Shanghai, was about to set foot in Chinese travel industry. Initially, this
market was developed by the business travelling which contained: the sale of
train and ferry tickets, processing for going abroad, and etc. In June 1st, 1927,
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5
China Travel Service was formally established, at that time, China Travel
Service was led by the General Manager Chen Xiangtao. And there were
mainly seven fundamental departments, namely: Department of Transportation,
luggage delivery services, customs services, transport services, the Department
of Operations Services for tickets sale (CITS.com 2009 [referred to 2.2.2010]).
1.4
Description of Shanghai CITS
1.4.1 Business History & Market Position
The business achievements and integrated strengths of Shanghai CITS are
among the best of its kind in China. Since 1993 when China National Tourism
Administration began to access the nation’ s top 100 travel companies,
Shanghai CITS has always been on the top of the list(CITS.com 2009 [referred
to 2.2.2010]).
As a mainstay of Shanghai’s tourism industry, Shanghai CITS upholds the merit
of sincere business management and quality service. As a result, it has won
attention and affirmation by our Party and government authorities at different
level and areas. On the separate occasions of 35th and 40th anniversary of the
founding of Shanghai CITS, the chairman of China made the following
respective inscriptions: developing travel will increase economy, service our
society, and strength the relationship among countries (Kou 1995, 24).
1.4.2
Management & Staff
Shanghai CITS possesses a group of well-trained and experienced personnel of
business management, product development, sales & marketing as well as
tour-guide service. Some of them have won the honorable of titles Shanghai
Model Worker, Shanghai Mar 8th Red Branner Pacesetter, Shanghai Number
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
6
One Scholar at Learning Three Merits, Shanghai Work Star, Shanghai Master
hand of Quality Control, National Model Tour-guide and National Master-Hand
of Technology (“New manager for CITS” 2006, 34).
The company is now staffed about 400 employees, as depicted in Figure 1,
95% of the total workforce have received junior college or higher education.
Over 250 employees are tour-guides speaking 16 languages respectively,
including English, Japanese, French, German, Italian, Spanish, Swedish, and
so on. Meantime, over 300 employees are qualified outbound tour leaders, as
shown in Figure 2 (CITSSH.com 2009 [referred to 2.3.2010]).
S t a ff Q u a lific a t io n
5%
C o lle g e e d u ca tio n a b o ve
O th e rs
95%
Figure 1 Staff Qualification in CITS Shanghai Branch (CITSSH.com 2009 [referred
to2.3.2010])
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
7
P r o p o r t io n o f T o u r G u id e s
30%
To u r - g u id e s
70%
O th e rs
Figure 2 Proportion of Tour Guides (CITSSH.com 2009 [referred to 2.3.2010])
From the above we can see that currently Shanghai CITS owns a good ability in
expanding their business to the overseas market, as their employee structure
can make them available for that.
2 Marketing and relative Theory
2.1 The Marketing Mix Theory 4 Ps
The Marketing Mix model (also known as the 4 P's – Product, Price, Promotion
and Place) can be used by marketers as a tool to assist in defining the
marketing strategy. Marketing managers use this method in the attempt to
generate the optimal response in the target market by blending 4 (or 5, or 7)
variables in an optimal way. It is important to understand that the Marketing Mix
principles are controllable variables, which can be adjusted on a frequent basis
to meet the changing needs of the target group and the other dynamics of the
marketing environment (Kotler & Kevin 2006, 4-5).
Table 1. Product Information (Tour of Turku)
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
8
Day
Price
Hotel
5
15000
Holiday Inn Turku
As the data shown in table 1, the information can be as following (combining
with the theories):
Product: Historically, the thinking was: a good product will sell itself. However
there are no bad products anymore in today's highly competitive markets. Plus
there are many laws giving customers the right to send back products that he
perceives as bad. Therefore the question on product has become: does the
organization create what its intended customers want? And the questions can
be answered as the following aspects: Functionality; Quality; Appearance;
Packaging; Brand; Service; Support; and Warranty (Joshi 2005, 124). In Table 1,
the product can be understood as the 5-day trip in Turku.
Price: How much are the intended customers willing to pay? Here we decide on
a pricing strategy - do not let it just happen! Even if you decide not to ask
(enough) money for a product or service, you must realize that this is a
conscious decision and forms part of the pricing strategy. Although competing
on price is conventional method, the consumer is often still sensitive for price
discounts and special offers. Price has also an irrational side: something that is
expensive must be good. Permanently competing on price is for many
companies not a very sensible approach. List Price; Discounts; Financing;
Leasing Options; Allowances (Joshi 2005, 124). In Table 1, the price is 15,000
RMB, which can be considered expensive when the average income of about
2000-3000 RMB monthly for ordinary employee.
Place: Available at the right place, at the right time, in the right quantities?
Some of the recent major changes in business have come about by changing
Place. Think of the Internet and mobile telephones (Joshi 2005, 125).
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
9
Promotion: It is the chosen target groups informed of educated about the
organization and its products? This includes all the weapons in the marketing
armory-advertising, selling, sales promotions, direct marketing, public relations,
etc. While the other three P’s have lost much of their meanings in today’s
markets, Promotion has become the most important “P” to focus on (Joshi 2005,
125). In Table 1, the mentioning of Holiday Inn Turku can be seen as a form of
promotion.
2.2
Sustaining Developments in Tourism Industry
2.2.1 Description on green marketing
According to the American Marketing Association, green marketing is the
marketing of products that are presumed to be environmentally safe. Thus
green marketing incorporates a broad range of activities, including product
modification, changes to the production process, packaging changes, as well as
modifying advertising. Yet defining green marketing is not a simple task where
several meanings intersect and contradict each other; an example of this will be
the existence of varying social, environmental and retail definitions attached to
this term. Other similar terms used are Environmental Marketing and Ecological
Marketing. The legal implications of marketing claims call for caution.
Misleading or overstated claims can lead to regulatory or civil challenges. In the
USA, the Federal Trade Commission provides some guidance on environmental
marketing claims.
The term Green Marketing came into prominence in the late 1980s and early
1990s.The American Marketing Association (AMA) held the first workshop on
"Ecological Marketing" in 1975 (Fong, 2004). The proceedings of this workshop
resulted in one of the first books on green marketing entitled "Ecological
Marketing". The first wave of Green Marketing occurred in the 1980s. Corporate
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
10
Social Responsibility (CSR) Reports started with the ice cream seller Ben &
Jerry's where the financial report was supplemented by a greater view on the
company's environmental impact. In 1987 a document prepared by the World
Commission
on
Environment
and
Development
defined
sustainable
development as meeting “the needs of the present without compromising the
ability of future generations to meet their own need”, this became known as the
Brundtland Report and was another step towards widespread thinking on
sustainability in everyday activity. Two tangible milestones for wave 1 of green
marketing came in the form of published books, both of which were called
Green Marketing. They were by Ken Peattie (1992) in the United Kingdom and
by Jacquelyn Ottman (1993) in the United States of America.
In the years after 2000 a second wave of Green marketing has emerged. By
now CSR and the Triple Bottom Line (TBL) were widespread. Such publications
as a 2005 United Nations Report, then in 2006 a book by Al Gore and the UK
Stern Report brought scientific-environmental arguments to a wide public in an
easy to understand way. This knowledge assessed the implications of moving
to a low-carbon global economy and the potential of different approaches. This
new wave of Green Marketing differed from the first wave in many respects. It is
curious to note that Green Marketing Wave 1 followed an economic recession,
whereas Green Marketing Wave 2 came before the global recession that come
to be known as the “Credit Crunch”. This difference may be significant in that it
may suggest that Green Marketing is here to stay. The green marketing concept
dictates, amongst other things, less use, recycling and avoiding waste, just
some of the ways society reacts at times of recession.
According to Jacquelyn Ottman, (author of Green Marketing: Opportunity for
Innovation) from an organizational standpoint, environmental considerations
should be integrated into all aspects of marketing — new product development
and communications and all points in between(Ramesh D., 2003). The holistic
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
11
nature of green also suggests that besides suppliers and retailers new
stakeholders be enlisted, including educators, members of the community,
regulators, and NGOs. Environmental issues should be balanced with primary
customer needs.
2.2.2 Green consumption in China
In China, green sustainable consumption in recent years has aroused a sharp
deterioration in the global environment, triggering the production and
consumption patterns of traditional reflection, mostly at the theoretical level, and
epitomized by the emergence of sustainable development theory and
development (Pan 2003, 93). With regard to the definitions of green
consumption, one of the representatives is: when choosing of goods and
services, consumers will take both their own health benefits and none damage
to the environment as criteria, so that the future generations can be safe from
being threatening of the survival with bad environmental conditions (Liu 2009,
65). According to UNEP's (United Nations Environment Programme) definition
of sustainable consumption, this term refers to the provision of services and
related products to meet basic human needs, in improving quality of life, while
making use of natural resources and the amount of toxic materials, so that
service or product life cycle can be generated by a minimum of waste and
pollutants, so as not to jeopardize the needs of future generations.
Tourism consumptions from the tourists, mainly including the "meals, lodging,
travelling, purchasing and entertaining", this tour elements, both material
products such as food, travel souvenirs and services such as catering services,
and guide service, but also as a tourist resource of the natural landscape and
cultural landscape, consumption is intended to complete tourism (Kevin 2001,
75).
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Sustainable tourism consumption is built on sustainable consumption system, a
subsystem that not only satisfying the development needs of contemporary
people and spend money without depriving the right of future generations to
meet their development needs the ability to travel hazardous to tourist spending.
This is the theory of sustainable development in the concrete application of the
field of tourism consumption. Sustainable tourism consumption used in the
theory of sustainable consumption, tourism consumption, the study of the paper
is quite instructive (Fu 2008, 237).
2.2.3 Green tourism consumption
With referring to the above definitions of green tourism consumption, tourism
consumption and the general consumer are very different products, from which
the green consumption can not cover all the tourist consumer behaviors, in
particular, tourists can not cover the landscape of tourism consumer behavior
(Wang et al. 2007, 95); Secondly, as can be in addition to the study of
sustainable tourism consumption sustainability, particular emphasis should be
put on the sustainability of the “production” of service (Fu 2008, 237).
Green tourism consumption refers to the process of tourists in the tourist travel
in seeking of the highest satisfaction at the same time, with respects for
environmental ethics, focusing on protection of tourism resources and the
environment, and in order to maximize the resources’ conservation and energy
consumption (Wang et al. 2007, 95).
2.2.4 The connotation of green tourism consumption
Tourists travel right to the highest satisfaction. The fundamental purpose: Travel.
As a leisure activity, its very nature tourists to get a better travel experience.
Therefore, the maximum travel of tourists’ satisfaction is an inevitable
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
13
requirement. Ignore the needs of tourists must blindly emphasizes the
protection of resources and environment and energy conservation is not
realistic (Wang et al 2007, 97).
Maintain a sense of environmental ethics, and consciously to protect tourism
resources and the environment, respect for local culture. Eco-environmental
ethics is to adjust the relationship between man and the natural environment
ethics, mainly including the emphasis on the overall harmony of nature,
emphasizing the conservation of biological diversity and ecological diversity,
requires man to recognize the natural rights and values. Eco-Environmental
Ethics emergence and development of the human face of environmental
degradation brought about by the growing crisis of survival rational thinking, and
contributes to global environmental movement. Tourism resources are the basis
for the development of tourism is the tourism consumption of core products;
tourism environment is an important part of tourism products. To protect tourism
resources and the environments, while maintaining the high quality tourism
products, but also for sustainable development (Fu 2008, 237).
In accordance with the requirements of circular economy and reasonable
disposal of waste, as far as possible to save water, electricity, gas and other
energy. Circular economy refers to the concept of sustainable development
under the guidance of cleaner production in accordance with the way the
implementation of comprehensive utilization of waste of energy and the
production of an active process, it requires the production activities to form a
"resources - products - renewable resources," the feedback -type process.
Consumption is the internal driving force, circular economy to stimulate the
development needs of green consumption, but also through consumption and
waste recycling and reuse to provide a lot of renewable resources (Fu 2008,
237).
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
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2.2.5 Characteristics of green tourism consumption
Through the consumption of green tourism and heritage tourism consumption
comparison, we can see the green tourism consumption has the following
characteristics of taking acts of eco-tourists and environmental protection, as
well as uniqueness:
Acts of eco-tourists and environmental protection: ecological tourists show
environment-friendly consuming behaviors in tourism. Environmentally friendly
consumer behaviors conducted by tourists mainly refers to the process of
buying environmentally friendly products; saving resources and energy;
reducing wastes, etc. (Pi 2004, 57-58).
Uniqueness: from the tourists’ point of view, the principle of moderation request,
pursuant to their own health status, economic conditions, such as choice of
travel consumer goods; from tourist spending as a whole, a moderate level of
consumption requirements of their travel to control the environment within the
carrying capacity (Pi 2004, 57-58).
2.3
Brand Marketing
2.3.1 Brief description
Brand management is the application of marketing techniques for specific
product, line of products, or brand. It seeks to increase the product's perceived
value to the customer and thereby increase brand franchise and brand equity
(Carey & Rob, 2003). Marketers see a brand as an implied promise that the
level of quality people have come to expect from a brand will continue with
future purchases of the same product. This may increase sales by making a
comparison with competing products more favorable. It may also enable the
manufacturer to charge more for the product. The value of one brand is usually
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
15
determined by the amount of profit it generates for the manufacturer. This can
result from a combination of increased sales and increased price, and/or
reduced COGS (cost of goods sold), and/or reduced or more efficient marketing
investment. All of these enhancements may improve the profitability of a brand,
and thus, "Brand Managers" often carry line-management accountability for a
brand's P&L (Profit and Loss) profitability, in contrast to marketing staff manager
roles, which are allocated budgets from above, to manage and execute. In this
regard, Brand Management is often viewed in organizations as a broader and
more strategic role than Marketing alone.
2.3.2 Types of Brands
A number of different types of brands are recognized. A "premium brand"
typically costs more than other products with the same category. These are
sometimes referred to as 'top-shelf' products. An "economy brand" is a brand
targeted to a high price elasticity market segment. They generally position
themselves as offering all the same benefits as a premium product, for an
'economic' price. A "fighting brand" is a brand created specifically to counter a
competitive threat. When a company's name is used as a product brand name,
this is referred to as corporate branding. When one brand name is used for
several related products, this is referred to as family branding. When all a
company's products are given different brand names, this is referred to as
individual branding. When a company uses the brand equity associated with an
existing brand name to introduce a new product or product line, this is referred
to as "brand extension" (Aaker & Erich 2000, 1-6). When large retailers buy
products in bulk from manufacturers and put their own brand name on them,
this is called private branding, store brand, white labelling, private label or own
brand (UK). Private brands can be differentiated from "manufacturers' brands"
(also referred to as "national brands"). When different brands work together to
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
16
market their products, this is referred to as "co-branding". When a company
sells the rights to use a brand name to another company for use on a noncompeting product or in another geographical area, this is referred to as "brand
licensing." An "employment brand" is created when a company wants to build
awareness with potential candidates. In many cases, such as Google, this
brand is an integrated extension of their customer (Bridson & Evans 2004, 404407).
A good brand name should:
•
Be protected (or at least protectable) under trademark law.
•
Be easy to pronounce.
•
Be easy to remember.
•
Be easy to recognize.
•
Be easy to translate into all languages in the markets where the brand
will be used.
•
Attract attention.
•
Suggest product benefits (e.g.: Easy-Off) or suggest usage (note the
tradeoff with strong trademark protection.)
•
Suggest the company or product image.
•
Distinguish the product's positioning relative to the competition.
•
Be attractive.
•
Stand out among a group of other brands (Fu et al. 2009, 221-222).
With the brand being as a passport to enter the market, culture is an important
sign of one brand, and it is the soul of it. Tourism brands, as a carrier of culture
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as the basis, through a scenic area, a service, a tourist souvenir, etc. make
people feel the process in the tourism and cultural atmosphere (Bridson &
Evans 2004, 410-411). Tourism brand culture is mainly reflected as the
resource culture, quality culture, service culture, marketing culture.
•
The resources of cultural tourism brand. Tourism resources (including
natural and human resources), socio-cultural product of the carrier of
culture. Tourism resources depends on certain natural conditions, in
human cultural development, social civilization and progress gradually
formed, rich in cultural content. Brand of cultural tourism resources,
tourism resources is inherent in the cultural connotation and cultural
characteristics, through effective revelation, which can be recognized by
tourists and perception. Cultural tourism resources in the end pieces of a
cultural context, the direct crystallization of the creators of individuals and
their social values, ideals and aesthetic sense of inclination, with deep
cultural heritage (Woodland & Acott 2007, 720-733).
•
The quality of cultural tourism brand. Quality is the brand of life, tourism
and quality of tourism enterprises of tourism products arising from the
experience of the expectations in the minds of tourists. The quality of
cultural tourism brand is to continuously improve the expectations of a
cultural process, which originated from the quality of tourism brand
awareness, business ethics, and quality concepts such as cultural factors.
It includes an advanced tourism planning and development of ideas and
the quality of tourism enterprises on brand awareness and evaluation.
However, tourism brand, after all, rather than tourists, tourism enterprises
a comprehensive experience of tourism products, the brand's charm is
rooted in the recognition and loyalty tourists (Gotham 2007, 834-836).
Therefore, the quality of tourists is the judge of the brand, can make the
quality of tourist satisfaction is the key.
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•
Tourism brand service culture. Good brands need good service, service
is a resource, the tourism industry of the country. Tourism's economic
development today, the product price competition has been a
comprehensive change to the competitive product value and valueadded products are mainly manifested in the value of tourism products
and cultural connotation of the increase in value-added service to
maximize the performance of the connotation. Tourism brand service
culture is based on the values of tourism brand as the core; in order to
create tourist loyalty, enhance the competitiveness of tourism brand as
the goal, the formation of common values and cultural norms of cognition
and behavior. Internationally well-known travel brands in both the
service-oriented resource development, tourism brand service will be
introduced in parallel with the brand tourism. Branded services not only
include service specifications, service warm, thoughtful service and other
content, more importantly, it embodies a kind of condensation in the
service of advanced culture - ahead of the service concept, sincere spirit
of service and superb service to the arts. This advanced culture
permeates all aspects of tourism brand, giving the connotation of the
brand unique and distinctive personality. Service is a kind of economic
behavior, but also a cultural behavior (Fu et al. 2009, 221-222).
•
The marketing of cultural tourism brand. Increasingly competitive in the
market today, in order to establish a brand image, a clever marketing
activity is tourism brand a bridge leading to tourists. But the marketing
culture is not marketing itself, but throughout the enterprise as a whole
marketing activities in the process of cultural ideas, guiding ideology and
the corresponding norms of the system that includes tourism enterprises
in the planning of tourism resources development, product design,
packaging and so on, from product planning to sales of the formation of
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the whole process of cultural phenomena and cultural atmosphere.
Brand marketing in the tourism culture of the most important thing is
marketing idea, it requires tourism enterprises must answer the first
question is "What we sell? Sales should be a new concept, created with
the tourists the psychological resonance. Second acts are profit-oriented
corporate marketing or brand value-oriented? Needless to say, should be
based on brand value as the ultimate guide. Can not be smashed
because of a momentary profit, brand, creating a brand take decades,
rather destroy a brand is not matter (Bridson & Evans 2004, 410-411).
Thus, as for the brand of cultural tourism resources, culture is the basis of
quality culture, service culture, and marketing culture are built on the resource
based on the culture, with all four are indispensable and mutually reinforcing.
Brand culture is a culture of tourism resources, quality, culture, service culture,
marketing culture, the crystallization. Tourism is fundamental to the success the
brand recognition of tourists, not just to convey the brand value.
Tourists can select travel brands to associate all of the information that are
deeply touching the inner world of tourists and generate positive, beautiful,
enjoyable, psychological experiences. Tourists will finally fall in love with the
brand and thus brand loyalty will be generated. On the contrary, tourists will be
dislike and staying away from the brand (Bridson & Evans 2004, 411).
2.4
SWOT Analysis
SWOT analysis is a widely known tool in strategic analysis that can offer the
background information and analysis in both the internal and external factors
the companies are facing (Kargar & Blumenthal 1994, 10). It is usually the first
step to decide what are the Strengths, Weaknesses, Opportunities, and Threats
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for the targeted company or industry. Following Figure 3 is the SWOT analysis
framework; it can clearly illustrate the logic structure of this tool.
Figure 3 SWOT Analysis Framework
However, in the internal analysis, the research team might have to focus on the
aspect of the internal capabilities, competitive advantages, cost strategy, and
other internal factors, or the research can follow the order of VRIO framework in
which the value, rarity, imitabilities, and organization aspects (Frederickson &
Mitchell 1984, 411) of the company should be conducted.
In doing external analysis, the research team should following the PEST
framework, or Porter’s five forces model. In PEST framework, the elements of
Political/legal, Economical, Socio-cultural, and Technological (Chaharbaghi &
Willis 1998, 1019) should be analyzed about the company, while Porter’s five
forces model are targeting on the analysis of Bargaining power of supplier,
Bargaining power of buyers, Threats of substitutes, Rivalry among competing
firms, and Threats of new entrants.
After making the long lists for SWOT aspects of the company, it is necessary of
making SWOT Matrix, which was delivered by Mckinsey. In doing this, the team
should firstly categorize all strengths into two groups on the basis of whether it
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is related to potential opportunities, or to potential weaknesses, and all the
weaknesses are similarly categorized into the opportunities-related group and
threats-related group in the same way (Curry 1996, 25-26). All the results can
be written into the following Figure 4:
Opportunities
Best Solution
Need for
Improvements
Internal
Internal
Weaknesses
Strengths
Need for
Need for
Elimination
Monitoring
Threats
Figure 4. SWOT Analysis – Solution offering
And finally the SWOT matrix can be done in with framework represented by
Figure 5:
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Figure 5 SWOT Analysis – SWOT Matrix
However, there is necessity of doing also a SWOT analysis for the major
competitors if they can acquire enough information, and thus to think like the
competitors’ analysts in predict the opponents’ future movements (Weihrich,
1999).
3 Guide for CITS to Enlarge the Oversea Travel Market
3.1
Methodology
Due to the complexity of information backgrounds in both the Shanghai travel
markets and the Turku’s travel markets, and lack of original information for CITS,
the targeted travel agency researched in this paper, the author decided to
collect relative information both in secondary information and primary
information.
3.1.1 Secondary information
In doing this research there are both primary data and secondary data existed.
The secondary data is mainly about the following information:
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•
Information of Chinese oversea travel market
•
Information of Shanghai travel markets
•
Information of CITS
•
Information of Turku travel markets
All the relevant data listed above is Stated as appendices in Appendices I to IV.
3.1.2 Primary information – the interview
The primary information is collected via the interview. The interview was done
with one of the marketing managers in CITS, whose name was Mr. Guo.
However, making this interview could allow the author to collect more
information about CITS and expert’s ideas about Shanghai’s oversea travel
markets. The selection of Mr. Guo is owing to two factors; firstly Mr. Guo is one
friend of my father’s friend, so I can get his phone number as well as get access
to invite him as the interviewer for the research. The other reason I chose Mr.
Guo is because he is the one of the marketing managers in CITS, who takes
charge of marketing function in Shanghai.
The interview lasted for about 1 hour through telephone, and in the interview I
asked altogether 9 questions to him (According to Appendix V)
In Mr. Guo’s answers there are lots of numbers but most of them are also
shown in the secondary information, here the author will not repeat again. Most
importantly, the author considers there are several questions that are worth
mentioning as results.
In spite of the detailed numbers, Mr. Guo do mentioned the current oversea
travelling conditions: people are more willing to go further, and Europe is always
the first place they want to go, and he also mentioned that the people who want
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24
to go Europe are usually not caring about detailed numbers of money they are
going to spend, but according to his experience, they usually expected to spend
about 20 K-40 K RMB in the tour for one people. Besides, he gave an
estimation of average duration for the tours to Europe, which usually lasts for 12 weeks, and he believes that is what people can bear (mostly in the winter or
summer vacation). Nevertheless, in talking about the possible growth of Turku
markets, Mr. Guo stated that considering the current conditions of Turku and his
experiences, in the first five years after 2011, the growth can be expected to be
averagely 4-5%, and afterwards, the travelling product can be said to be mature,
and the growth will be at 2-3% annually. And Mr. Guo is frankly mentioning that
CITS is surely not the only one choice of Turku, and there are other powerful
competitors such as Shanghai Spring International Travel Service Co., Ltd, and
Shanghai CYTS Tours Corporation, might both be good partner in cooperation.
When asked about the cooperation mode with local government, Mr. Guo is
ambiguously answering the question, but he does mention that the more
government devoted into the cooperation, the more smoothly the cooperation
will be and the more tourists will be there in Turku from Shanghai. Additionally,
Mr. Guo made his judgments on the feasibility of establishing a branch at Turku,
which will be very serious problem to consider, he said usually in the first three
years they would not set branches in any of the foreign places, and after three
years, only those places with more than averagely 7% annual growth will be
considered, and he said, 7% of growth in the newly set-up touring destinations
is an outstanding number. In thinking of that, he expects Turku can offer better
hospitality and restaurant services, as Chinese customers are very serious
about these two issues; besides, when talking about how much cash would
CITS possibly invest on this project, Mr. Guo said in developing a new foreign
touring market the average consumption was usually 1 to 3 million RMB, which
is approximate 100 K to 300 K Euros, and this amount of money is the number
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25
CITS is willing to pay on this project. Finally, Mr. Guo made his summary for the
potential project, that he thinks Turku is a very representative touring
destination in Europe, and what is really attracting him is the historical sites that
eye-witnessed Finnish history, that will be a excellent competitive edge for the
customers. And Mr. Guo also mentioned in Turku customers could not only go
sight viewing but also experience Finnish culture, which will be special for them.
3.2
SWOT Analysis
SWOT Analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business
venture, as detailed mentioned before. It involves specifying the objective of the
business venture or project and identifying the internal and external factors that
are favorable and unfavorable to achieving that objective.
3.2.1 Strengths:
China's tourism development advantages: the impact of financial crisis for
China's tourism industry is relatively not deep. The financial crisis makes global
economy largely depressed, especially in EU and the U.S., the economy
recession has been occurred and imports shrink, and unemployment rate
increased, which directly affect their domestic tourism developments. However,
under such business environment, significant declines in tourism industry have
been met currently in most of the western countries. Under the dark clouds of
the global financial crisis, comparatively speaking, China's tourism is still
thriving with much smaller impacts, although the reduction in the number of
foreign tourists affect the whole hospitality industry in general, our population is
still as high as 92% of the respondents of this industry. It also prompted the
crisis in China's tourism industry to be a certain degree of ease. Therefore,
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26
compared with European and American countries, China's tourism industry is
receiving really small impacts of the current world’s economy condition.
On the other hand, taking a domestic perspective, there are still huge domestic
travelling demands exist in China, with gradual growth. Under the influence of
the financial crisis, domestic demand for tourism has been reduced, as Chinese
consumers are gradually becoming more wealthier and who are more likely to
enjoy natural environments, innovative products, and modern life style, and
there has been dissatisfaction in the enclosed family life, but people are more
eager to broaden their horizons through travelling, even with the financial crisis
affecting the people's income and spending.
3.2.2 Weaknesses:
China's tourism industry also has some disadvantages. According to Tourism
Research Center of Chinese Academy of Social Sciences special researcher,
general manager of Mountain Travel Group, and Chinese National Tourism
Administration, latest statistics have shown that in the current and future period
of time will be the most difficult period of the tourism industry, and declining can
be emerged in consumers’ demands both for travel market and hospitality
industry. In such a situation, China's tourism investment confidence has
encountered setbacks, and tourism enterprises are struggling more, tourism
employment is faced with more severe situation. Civil aviation, transportation,
communications, catering, retail and other related industries will also be
significantly affected.
On the one hand, the countries deeply affected by the crisis, based on the
development of national economy, increasing employment needs, may be
introduced to promote their own tourism developments’ initiatives to attract
more overseas tourists. Therefore, the Chinese residents traveling abroad may
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27
be more convenient. In February 2009, the number of outbound Chinese
tourists reaches 3.6783 million, compared with one year earlier, this number
had declined for 2.50 percent. In counting of the first stop in terms of the
number of travelers, the top ten countries and regions are: Hong Kong, Macau,
South Korea, Japan, Vietnam, Russia, Singapore, Australia, the United States
and Malaysia (2010, Jan-Feb accumulated), the number of outbound Chinese
tourists had carried about 7.9909 million passengers, compared with same
period last year, about 5.53% decline is faced by the domestic tourism.
On the other hand, the financial crisis triggered the effects of recession in
various industries, although with limited impacts, Chinese touring industry is
affected. In February 2009, China's tourist arrivals welcomed 9.3981 million
passengers, with 5.14 percent down in the comparison with last year. And
foreign passengers are 1.5608 million, with the downsizing of 12.87%. It is
estimated that in this month the country to achieve tourism (foreign exchange)
revenue 2.834 billion U.S. dollars, with 9.19 percent declining. Additionally, the
immigration and domestic demands has been gradually declining at the same
period.
In addition, the rapid appreciation of the CNY let the price advantages of
China's tourism industry been weakened. In the case of a prolonged economic
recession, the dollar depreciated, the euro, British pound devaluation increased
pressure to accelerate yuan appreciation. Besides, the currencies of CNY
against JNY, HK dollar and other main currencies are also showing continuous
appreciation in such situation. In such a proportion of convertible currency is not
conducive to China's Tourism. China's tourism industry is not mature enough to
face with the risks well enough. And when tourism industry is currently facing
with an immature market, many problems have been aroused in terms of the
developments and the competition, and the authorizations are still working on
establishing mature marketing mechanism in order to make the regulatory rules
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28
been successful executed and release effective management on those
agencies. Secondly, the existing travel system is difficult in adapting the
requirements of modern enterprise systems, particularly the state-owned
tourism enterprises and national state-owned enterprises facing with common
problems. This can be detailed expressed as the issue of how to transform their
operational mechanisms into businesses. Additionally, although tourism
development is deployed in such large scale, the "Travel Act" as well as
tourism-related laws such as the "Hotel Law", "Tourist Safety Act," "tourist
attractions Security Management Act" and has yet introduced. So many
problems occurred in the process of tourism development can not be
determined down the status of the tourism industry in the national economy,
and thus they can not be considered as statutory body the scope of the
management of the tourism industry, tourism, the division of management
functions such as long-standing contentious issues remain unresolved.
From the micro perspective, because the legal system is not perfect structured,
the tourism market there have been many problems: enterprises between the
use of improper means to steal business secrets, misappropriation of corporate
name, undermine the interests of enterprises and other improper competitive
behaviors: to begin with, fake and decisive competing activities and shoddy
products are violating the travelers’ rights; besides, service is poor, and
deliberately making things difficult for tourists, without authorizations’ support it
is hard to change the travel schedule; furthermore, “guides do not guide”
causing the tourists’ property losses and a discount of touring effects; catering
to the poor quality does not meet health standards, and even food poisoning, ";
black lead "," black car "," black photography "disrupt the tourism market order;
scenic trailing vendors sell, hard sell, resulting in scenic areas of law and order.
These immature factors have led to the financial crisis facing our country,
against the risks relative to other countries are relatively poor.
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29
3.2.3 Opportunities:
Intensified macro-control and tourism industry, long-term benefits. November 5
in 2008, a State Council executive meeting, identified with the current efforts to
expand domestic demand and promote economic growth in 10 measures.
Analyzed in line, these 10 measures is probably classified into four categories:
increasing investments and income, reduce taxes, relaxation of credit, how
many are directly or indirectly in travel and tourism association, particularly with
regard to speed up the railways, highways and airports and other major
infrastructure facilities building, particularly in the west and Midwest trunk
railway lines the airport, the decision of the construction of feeder airports the
most direct impact on tourism. The political objective of expanding domestic
demands, will be resolving the residents’ economy condition, especially for lowincome groups and some of the rural residents and other people to worry about.
Relative to high-income groups, despite these people the amount of the per
capita tourist spending less, but because of their higher marginal propensity to
consume, coupled with a larger population base, it can also be driven to some
extent in the low-end tourism market development.
It is expected that China's tourism industry will be more regulated in improving
the status of the international tourism industry. Issued by the United Nations
World Tourism Organization reports that global tourism boom in the
international tourism industry into a slump a while next year, the performance of
the tourism industry can not be optimistic circumstances, for China's tourism
industry is indeed a "corner overtaking" a good opportunity. China's tourism
industry is expected to come to the fore in this piece of low pressure. Because
in terms of China's economic and social development, China's economic
fundamentals have not changed the momentum of development of tourism
remained strong. China's opening up expanding the reform steadily, and urban
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30
and rural incomes continue to grow, freedom of travel is still an enormous
potential for consumer demand. 30 years of reform and opening up to lay a
solid foundation, it will effectively support the country's tourism industry.
Therefore, China's tourism industry, in this crisis there may be bend to overtake
the trend will also enhance its international status.
3.2.4 Threats:
As facing with the financial crisis, China's tourism market can encounter a
variety of threats. In this crisis we should understand the threats and work on
solving those threats with strengths and opportunities. With further a developed
domestic tourism in China, the market will attract a pattern of intense
competition. The general downsizing of the domestic economy will to some
extent force the tourism industry enter a season with limited businesses, so the
domestic airlines and hotels will be on discounts. It is understood that the
general price reduction will occur after the Spring Festival of domestic routes,
with the level of about 10% in the downsizing. In speaking of the tour to Hainan,
a southern island of China, more than 5 traveling lines are as low as 3,000 RMB
or even less. For did not go to famous tourist attractions such as tourists ever
travel routes offer very attractive football to more Chinese tourists intent is
obvious. Domestic tourists are domestic tourism routes to attract, the Chinese
foreign markets competitive.
3.3
Brand Strategy in CITS
3.3.1 Sound Performance
According to CITS (2009, 1), the international branding assessing organization
“World Brand Lab” has issued its 2009 version “Chinese top 500 valuable
brands”, and CITS is ranked 51st of all the 500 brands, with its 13.69 billion
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31
RMB brand value, which is the first place of Chinese tourism service industry.
However, CITS has continuously earned itself one place in the top 500 valuable
brands in China for six years, and as for 2008, the total value for CITS’ brand is
11.53 billion RMB, and the number in 2009 is revealing a very sound
performance of the past year delivered by CITS.
3.3.2 Detailed Brand Strategies in CITS
Traditional Channel: According to the Stock Daily (Tourism and Tax-free No.1
brand – CITS’ IPO 2009, B1), founded in 1954, CITS is always the No.1 brand
in the industry and is taking the leadership of this industry. Currently this
company owns 31 subsidiaries and 200 branches in China, which cover most of
the main cities and popular travelling cities. Besides, it is establishing
subsidiaries in America, Japan, Australia, and France, and has successfully
operated a stable sales network and completed reception system, which all
make the CITS outstanding top of this industry.
However, brand strategies, especially brand building strategies, are put with
very important roles in CITS’ brand strategies. In 2008, CITS is successfully
becoming the only tourism service supplier that got the access to Olympic
village (place for most of the athletes), while it is also invited to be the only
tourism service suppliers for guests’ reception. Therefore, the brand of CITS is
seen in nearly every cover of the city of Beijing in 2008, and which will definitely
help to build a good brand image both for Chinese and for foreign guests.
E-commerce: With outstanding services offered for customers, currently the
CITS is cooperating with e-commerce suppliers to make the brand of it seen by
more people with broader background. One of the most successful cooperation
is Alipay, the biggest paying platform in China, and CITS is trying to offer a full
range of services including online consulting, online ordering, online paying, and
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32
online contracts. The origin of this cooperation is aiming at the company value
to offer more convenient services to customer, but now it can not only support
the customers’ payments, but also a chance to enlarge its sales with a new
area’s development (Tourism and Tax-free No.1 brand – CITS’ IPO 2009, B1).
However, as for the general branding strategy, CITS is now choosing the right
direction and taking off to even higher developments.
3.4
Researching And Identify The Market
In the exit of tourists involved in the investigation, the male to female ratio was
essentially flat.
•
Age composition. The main difference age of eligibility for research
concentrated in the 18-35 years and 46-55 years age group between.
•
Occupational composition. The study compared the occupational
distribution of wide range of objects, data is more objective, analytical
results more accurate.
•
Educational level. From the level of education constitute a point of view,
the basic level of outbound tourists at the higher academic qualifications.
•
Household monthly income. Qualitative research appears in the exit of
tourists "civilian" of the trend characteristics.
•
Family structure. Family of three percentage is far higher than other
types of family structure.
3.5
Marketing Resource to Plans
Tourism development to environmental improvement, very likely accelerate the
development will improve the soft environment for tourism development.
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33
•
The characterization of tourist hotels and policies may be different from
the general excessive government spending, stressing the different
channels of tourist hotels of funds, operational objectives are different,
the target is different from tax policy to give preferential treatment;
•
Second, the tourist hotels will be the basis for the supply of a fair price,
get rid of water, electricity Price not fair;
•
Tourism foreign exchange enterprises will be incentives to enjoy the
export tax rebate policy.
3.6
Competition
With scientific and technological development, continuous improvement of
goods and information transmission, communication tools, so that it has a
greater ability to overcome the problems of distance, so that close ties between
the regions, increased interaction between the geopolitical order between
regions of growing. Resources between regions, products, markets, and
economic differences or complementary, there is also class homosexual or
similarities. In particular, the relationship between the adjacent geo-regional
tourism related to the interaction between the stronger the incentive.
3.6.1 The geographical nature
The development of tourism in a region can not by itself alone, but with various
levels of the regional system has undergone countless links. Scientific and
technological development, cargo information transmission, communication
tools for improved, the ability to overcome the greater spatial distance, and
information transport developed, so that close ties between the regions, the
increased interaction between and thus between regions of growing geopolitical
, such as the Lugu Lake Tourist Area, Yunnan and Sichuan, all part of the
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34
intense competition in the two provinces, while the large tourist area of Lijiang,
Great Shangri-La tourist area, the Lancang - Mekong Regional Cooperation
Organization, ASEAN and other regional organizations, 103 the impact of such
a regional tourism geopolitical nature, so that between regions showed: (1)
Proximity; (2) Interference; (3) Accessibility features.
Due to geographical proximity, accessibility, contact closely related to regional
tourism within the system of competition between the various elements of effect,
the symbiotic effect, complementary effects, the overall effect of competition
from the regional tourism and cooperation mechanism.
3.6.2 Tourism resources similarity or complementary nature
Occurrence of regional tourism resources condition is the type of tourism
resources in the structure, quantity, quality, tourism resources development and
tourism products of the conditions, which reflects the value of tourism products
and production costs, is the basis for the formation of tourism products.
Between the tourism resources of regional tourism similarity or complementary
nature of the strong relevance of tourism and tourism products, alternative, so
that the region between the resources, products, markets, and economic
differences also exist, or complementary, there is also Class homosexual or
similarities (KUAN YU CHEN, 2007).
Regional Tourism in the interaction between the space on the one hand be able
to make the relevant regional tourism strengthen ties to pass on and expand
development space, more opportunities for development; the other hand, would
lead to dispute between the interests of regional tourism resources, elements
the development of opportunities and competition, and some of the region is
likely to cause damage, that is generated between the regions of the
relationship between competition and cooperation.
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Markets and their characteristics:
•
Personalization trend. As people age, income, experience. Interest,
Living habits, as well as differences in educational level, etc. Travel
demand will appear vastly different propensity to consume personal
development trends mean that the tourists on the tourist destination of
choice appears specificity characterization makes some various tourists
of all ages and preferences.
•
Diversified development trend, which means that the development trend
of diversification of the tourist destinations of tourists increasing freedom
of choice. The needs of diverse consumer-grade is more and more public
participation in travel behavior was the inevitable result of modern
tourism consumption psychological development of the basic trend.
•
Knowledge-based development trends. Modern tourism is not just
confined to enjoy the scenery, and importantly, as a people to precipitate
the knowledge, access to information. A way to increase their abilities'
quest for knowledge will become a leading tourist destination.
•
Green travel trends. In a growing number of tourists the choice made by
the apparent in right (natural) tourist area, the level of ecological
protection and status of being tourists increasingly emphasized the
importance.
Travel market needs and conditions:
Outbound tourism has enhanced our people and the peoples of the world of
mutual understanding and friendship among and promote the science and
technology communication and development. International tourism is an active
civil diplomatic activities, but also international cooperation and exchange bonds.
Our people go abroad doors, with different countries, different religions,
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36
different cultural backgrounds and different lifestyles of people into direct
contact, enhance the and the mutual understanding among peoples and
friendship, shortening the gap between the cultural and psychological gaps, and
to cooperate with each other erect the bridge. Mutual understanding and
exposure to large-scale Sino-foreign economic and technical cooperation are
often the precursor. Through foreign travel, China Travel, one can bring a lot of
information from abroad; contribute to our understanding of the international
market, increasing trade exchanges between the opportunities. The scientific
and technological progress and development.
The emergence of tourism boom is a historic necessity of economic
development is inevitable. Reached a new stage of socio-economic, people's
hierarchy of needs certainly from a lower stage to the advanced stage of
change, a simple domestic tourism has been unable to meet the high-income,
high consumption class. Chinese outbound tourism, with the goal of socialist
production is consistent, not only can well satisfy people's knowledge, seeking
happiness and self-development needs, and enable our citizens to have more
opportunities to understand the world.
Organization of Chinese citizens’ travel abroad to carry out two-way
communication source will help improve China's status in the world. In China
organized reception of overseas tourists to China up to 10000 passengers, 100
million-US foreign exchange earnings from tourism. In this context, lost no time
in carrying out outbound tourism, in line with international economic life of the
practice has fully demonstrated China's foreign open and sincere help in the
world to establish a good reputation, which facilitates our bargaining
negotiations with foreign investors to obtain multilateral trading status.
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
37
4 Conclusions and Discussions
4.1
Strengthen Macro-Control in Tourism Market
Involved in the domestic tourism such as transports, catering, entertainments,
gardening, commercial, cultural and other departments, this industry will
develop the tourism industry with struggle. In order to make these sectors
interrelated, integrated services for domestic tourism, the state must strengthen
macroeconomic management and coordination. As for the economy, we should
make full use of price leverage to develop high-quality products at higher prices
but are with special characteristics, and the low-cost strategy should be
deployed with proper extent so that to make competitive price stay in protecting
the contents.
Use of legal means to prevent illegal operations, and make the legitimate rights
and interests protected for the tourists. Tourism authorities in law under the
guidance of the tourism industry in conjunction with relevant departments draw
up anti-unfair competition law, the implementation details and supporting
measures. The use of rules and regulations promulgated by the state, such as
"Tourism Law", "consumer protection law," to strengthen the management of
domestic tourism and improve domestic tourism business in order so that the
healthy development of domestic tourism. Besides, owing to the weak
legislation in China’s legal system, currently the travel agencies can easily be
registered even without certain certificates or prove of qualification within the
industry, that makes investors or other businessmen easily enter this market
with a irregular operation on both the customer travel service and competition,
therefore it is time for stop those unqualified travel agencies from being
established and with such efforts these agencies can thus offer larger level of
quality service, which will offer practical benefits for customers. Third, the
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
38
financial information of travel agencies should be open to public, as the
transparencies of any form of companies are important for authorities and public
to monitor the business operations employed, travel agencies, although some
are small, should also be open in terms of financial information, so that the
authorities could deliver more targeting controlling strategies for those agencies,
and thus the marketing environment should be more regulated and formal, and
thus to be more mature for competing activities.
Use administrative means to develop the industrial policy to guide the
development of domestic tourism co-ordination appropriate. In the industrial
layout, the hot spots to give priority to the development of international tourism,
an appropriate balance between the domestic tourism; cold spots should be
concentrated on the development of domestic tourism; temperature point of
efforts to promote the development of international tourism, domestic tourism
spending some of the forces do a good job. To guide investment in the correct
orientation, so that the proportion of tourist facilities, high profile co-ordination,
physical facilities and mental facilities, the ratio should be moderate.
4.2 The Establishment of Sustainable Tourism Development Concept
Sustainable development calls for a rational growth of China's tourism industry,
specifically: The scientific development concept to guide China's tourism
industry. Establishing Brigade Travel industry, with the new concept of
development, is the most critical in changing the previous single-sided pursuit of
the expansion of economy scale, however, GDP growth turned to be from the
pursuit of industry's core competitiveness to enhance and improve the quality of
the whole industry. Only in this way can the development of China's tourism
industry into the track of sustainable development, healthy and truly from a
tourist power across the country to travel.
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39
To establish a scientific evaluation system for the development level of the
tourism industry. Level of development of an industry standard model of a direct
impact on the choice of the industry, so the establishment of a scientific and
reasonable evaluation system is an industrial level with a far-reaching historical
significance of the systems engineering. Development of tourism industry to
measure the level of the evaluation system is a three-dimensional, multi-targets.
In addition to the tourism industry GDP indicators, should also include elements
of tourism, the cultivation conditions, the degree of order in the tourism market,
tourism industry association for other related degree, the tourism industry to
promote employment and reemployment contribution to the extent of the
tourism industry to solve the "three rural issues" question the role of tourism
resource protection and sustainable development of the tourism industry to
promote regional economic coordinated development of the role of the tourism
industry to attract investments to expand the role of open areas. Only tourism
development evaluation index system of scientific, rational, comprehensive,
objective, and take the initiative in correcting the phenomenon of one-sided
pursuit of GDP targets, establish a scientific view of achievements, change to
high input, high consumption and a large number of repetitive construction of
tourism projects, support short-term tourism GDP, high growth rates.
To build an effective macro-control system. Full competition is not equal to
disorderly competition, on the contrary, it is necessary to implement full
competition is necessary to establish an adequate and effective macro-control
system to ensure that all market players in the market behavior of the equal
status of competition in the market based on open and fair basis.
4.3 To Accelerate Product Development of Tourism
With the vigorous development of world tourism, the current China's annual
consumer goods for the purchase of various types of tourism, nearly 1 trillion
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
40
U.S. dollars. To enable more of our tourism product abroad, should have the
corresponding production and management institutions, to enhance the tourism
product of the investigation and research efforts from various aspects. The
production of tourism products for the enterprise, the state should be in capital,
energy, raw and auxiliary materials, tax and foreign exchange policies and so
on to be tilted and support to enable enterprises to production and operation of
tourism products with the enthusiasm and creativity. At the same time, but also
through joint ventures, leasing, and three to a fill and other means, to introduce
foreign capital and advanced technology equipment to expand the variety of
tourism products, improves product quality to meet the needs of foreign tourists
and the need to expand exports.
4.4
Making Strategic Alliances Abroad
Strategic Alliances should be deployed when travel agencies are expanding
their business internationally, and that will be the most important step in making
businesses developed with more broadened view. As for the detailed strategy
for current travel agencies in China, it would be valuable for those large travel
agencies to cooperate with all forms of businesses, mainly the hospitality
companies or the governments / NGO organizations abroad. In terms of
establishing strategic alliances with hospitality companies, taking CITS and
Turku as an example, at this time, it would be the best time for building good
and fixed relationship between the CITS and various restaurants, hotels, and
other hospitality businesses, as economy recession makes them desired for
such cooperation in bringing customers and benefits. However, this will be a
win-win solution not only benefit the Turku’s domestic hospitality industry, but
also earning money for CITS; besides, as mentioned in the above analysis, it
would be better if CITS is cooperating with Turku’s government or nongovernmental organizations and together they can offer various activities for the
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
41
local people in knowing about Chinese culture and history, and also the
government of Turku could be invited to come to Shanghai for the promotion of
this city’s good sight view and friendly culture.
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
42
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Appendix
Appendix I: Information of Chinese Oversea Travel Market
Overall, in 2008 China's outbound tourism market is a result of domestic tourism
activities have been constrained to seek psychological relaxation outbound
travel, vacation abroad to promote tourism activities to adjust the relative
concentration of the second half, as well as the number of people to visit Hong
Kong and Macao to maintain sustained growth characteristics. While in 2009
China's outbound travel market will be changes at home and abroad under the
influence of environmental factors move on, it will be the rapid development of
outbound Chinese tourists a year, it may be that many countries the policy for
outbound Chinese tourists to make significant adjustments in a year.
According to data released by the National Tourism Administration in 2008,
leaving the total number of times 45.8444 million people, more than in 2007 an
increase of 11.9%, of which non-official exit of 40.1312 million passengers, an
annual increase of 14.9%, due to the public exit of 5.7132 million passengers,
an annual increase of 5.25 %. Over the same period due to the public and
private business and the exit on the number ratio of 87.5:12.5, while in 2007 this
ratio was 85.3:14.7. Specific point of view, the central government to the
citizens of Hong Kong and Macao tourism activities in support of Taiwan to the
mainland has opened up a new policy, the United States as a new tourist
destination open, strong yuan, all kinds of media concentration and other
factors affect the promotion in 2008 outbound tourism market, while the
Government to strengthen Taiwan travel guide, non-legitimate "junket" and
border tourism cause for concern (turkumusic.com, 2009).
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46
Appendix II: Information of Shanghai Travel Markets
Appendix 2.1. The travel market of Shanghai:
Along with the deepening of economic reforms, increasing the standard of living
of the residents are free to disposable income continued to grow, the number of
outbound tourism increased rapidly. At present, China has become a rapid
growth in Asia's emerging source countries. In 2000 the total number of
outbound Chinese citizens to 10,472,600 passengers in 2002, the number of
Chinese outbound tourism 16,600,000 passengers in 2003, this figure reached
20.2 million people. The number of Chinese outbound tourism for the first time
Japan has become the largest number of Asian countries abroad. According to
the World Tourism Organization statistics, China's outbound tourism has been
one of the world's top ten consumer. From 1994 to 2003, China has more than
100 million outbound passengers, an average annual increase of 13.87 percent.
China has become the world's fastest-growing source of emerging exporters. As
China's outbound tourism policy continues to relax, to further simplify exit
procedures, the increase in outbound tourism destination and brought about by
the appreciation of the RMB's a decline in the cost of outbound tourism,
outbound tourism will become the future of our residents as a tourist hot spot.
Income level of Shanghai residents in the country a leading position in outbound
tourism of urban residents of a city is a measure of the level of economic
development and tourism an important indicator of consumer behavior. Travel
agencies in Shanghai in 1990 organized by the number of outbound tourism
amounted to tens of thousands of people, has maintained rapid growth since
2003, there are 289,000 members of the public visiting Shanghai, 2002 growth
of 52.12 percent year on year, accounting for the number of national proportion
of outbound tourism first in the country. According to the Shanghai Municipal
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47
Committee brigade Department, January-August 2005, Shanghai tourism
reached 347,000 people last year rose by 42,000. Therefore, the study of
Shanghai residents travel behavior, to a large extent is reflected in the Yangtze
River Delta region and the country's outbound travel behavior of urban
residents, the study has important significance.
This issue through a survey of Shanghai residents, combined with the Shanghai
Municipal Committee of the departure journey information on the experience of
Shanghai residents in the exit, exit characteristics, trip purpose, trip mode and
destination choice behavior analysis of Shanghai residents travel behavior.
According to survey data for future prediction of travel behavior, on the basis of
recommendations for the future. The focus of the study is:
•
China's outbound tourism market and environmental analysis. On the
one hand, the international environment from the point of view, the
international environment of peace, is very conducive to the development
of tourism. Although some areas of conflict, and contradictions, but the
overall environment for the development of tourism opportunities.
Domestic environment, the national economy has remained at doubledigit growth rates, would also like to Shanghai the figure is higher than
the national. Country's economic development, and the people on the
bulging wallet, and the idea of traveling abroad are more natural.
•
Shanghai residents survey of outbound tourism consumption. The survey
research approach used for the acquisition of Shanghai residents
objective travel behavior data using the random sampling method, the
form of a questionnaire survey among 10 districts and counties in
Shanghai, a major center of the lot at random in public places, at the
same time Tour of Shanghai Committee of the information provided from
the analysis. Survey includes residents of Shanghai has undergone exit,
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
48
exit the object and exit the form, select a travel agent from the main
influencing factors, from the composition of the proportion of projects at
their own expense, as well as the next exit so I hope to visit the country.
•
Shanghai residents travel summarize the characteristics of consumer
behavior. (1) of Shanghai residents in the scale of outbound tourism
market is gradually expanding, "the civilian population" of the family
income has gradually become the backbone of outbound tourism market,
while outbound tourism in the crowd, in the 18-55 age group than the
proportion of groups Great. Tourists from outside in addition to the highly
educated, highly educated in China, accounting for a certain proportion
of young people. (2) of Shanghai residents in outbound tourism market
mainly concentrated in the Southeast Asian countries and Japan and the
United States, the overall performance for the increase in attenuation
with distance. (3) Shanghai residents of public and business, the meeting
abroad the largest share, followed by tourism, holiday tourism. (4)
Shanghai residents to select a travel agent, its brand and price is an
important factor. (5) Shanghai residents to travel abroad is an important
consumer spending. (6) of Shanghai residents in the destination country
in the next selection of the most popular European tourist destination,
followed by the United States and Canada. Demonstrated long-distance
outbound tourism market of great interest, but also indirectly verify the
Shanghai people's consumption level and expectations.
Shanghai residents from the development trend of consumer behavior and its
recommendations. According to the survey data, from the form of Shanghai
residents, individuals and other individual forms of self-help travel still
accounted for a smaller percentage of group travel, including units of the
company and the official passing of the Tour, accounting for 71.87%. Tour
groups are still a large market potential. In addition, with China's accession to
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
49
the World Trade Organization, as well as to speed up the process of Shanghai
people's living standards, to sightseeing and leisure travel for the purpose of the
market will have a lot of room for growth, we can predict in the next 5 years,
Shanghai residents from Travel to Tourism for the purpose of leisure and
holiday trends will become even more obvious that residents of Shanghai has
become the mainstay of the demand for outbound tourism. Faced with the
behavior characteristics of tourists and its future development trends, tourism
enterprises need from the perspective of the interests of visitors to consider the
issue, the implementation of brand management strategies, to promote
enterprise-based brand marketing activities in order to create high-quality brand
of service . Government should regulate the competitive practices of tourism
enterprises through the establishment of macro-control means of corresponding
laws and regulations or institutional arrangements, strengthening government
regulation of market order can only increase the outbound tourism market to
interfere with the normal operation of the order of punishment of acts, and for
operating outbound travel their business to create a good competitive
environment. In addition, to strengthen international cooperation to protect the
outbound travel of Chinese citizens security and information flow, and local
tourism enterprises abroad to do a good job of communication and cooperation
is an essential work.
Appendix 2.2. Shanghai public status of cultural tourism consumption
Shanghai to participate in the investigation of the types of people in the tourism
has shown a wide range of features. Of which: Tourism accounts for 25.00%,
25.33% accounted for holiday travel, business travel accounted for 3.25%
official, accounting for 6.16% adventure tourism, eco-tourism accounted for
8.12%, Leisure travel accounted for 30.84 percent, tourism and cultural
knowledge of education accounted for 1.30%. As can be seen, the traditional
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
50
tourism can not meet people's demand for tourist consumption, and leisure
travel and tourism has shown a strong development momentum in .2004 the
European Union in September, opening up the country as a whole, more people
of Shanghai will also be the future of Europe as a travel destination, the
proportion as high as 38.31%. in tourism consumption, people in the
accommodation and catering requirements are also rising, select stars level
accounted for 62.34 percent of the hotel, features accounted for 70.13% of the
dishes. Generally speaking, in the travel expenditures of the three are still a
larger proportion of food, accommodation and transport.
Appendix 2.3. The trend of the travel of Shanghai people
Travel consumer awareness of universal values that reflect the tourism
consumption of tourism consumption of tourism consumers whether the value
or the value of an object the size of the evaluation principles, the decision of the
tourist.
Those who carried out the general direction of tourism consumption. Tourism
consumption values that dominate why people want to spend what they should
consume, what time of consumption, and in what manner consumption, and
consumption much.
The extent of people's values will change between quietly, while the changes in
values will lead to changes in demand. According to the experience of
developed countries, people GDP per capita, after more than 3 000 U.S. dollars,
the demand for spiritual and cultural life will be dramatically up. In 2000
Shanghai's per capita GDP has exceeded 4000 U.S. dollars, in 2004
Shanghai's per capita expenditure on tourism and other cultural and
recreational services, 556 yuan, compared with same period of 2003 increased
30.5%, leisure, enjoy life and consumption become a need . For the people of
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
51
Shanghai, in the travel behavior is no longer a luxury but an integral element of
fashionable society, is an investment in health is important is not whether to
travel, but how to better tourism consumption.
Appendix 2.4. Market needs for Shanghai travelling
Choice of Shanghai as a study of consumer culture, tourism and informationgathering is based on the following factors: First, the city's economic
development factors .2007 years, Shanghai's GDP since GDP 2004 GDP of
Shanghai known as "Shanghai's GDP" , referred to as the "Shanghai GDP" 12
00.116 billion Yuan, equivalent to 5.4% of national GDP, accounting for 16 cities
in the Yangtze River Delta 25.4% of GDP, the growing consolidation of the
economic status. Secondly is the urban population factor. Shanghai's existing
permanent Population 1 778 million, the urban land area of 3,925 square
kilometers, in accordance with the National Urban label size, mega-cities are
Shanghai. three factors in urban area. Shanghai is located in the forefront of the
Yangtze River Delta, while the central part of China's north-south coastline,
traffic convenient location is extremely advantageous. Fourth is the urban and
cultural factors. Shanghai after a hundred years of development has created a
unique Shanghai culture, the traditional color with the "Beijing School Culture"
In contrast, the implication of its trendy, change, innovation characteristics
become more prominent. At present, the international metropolis of Shanghai is
committed to building, committed to the development of "characteristics of the
times, with Chinese characteristics, the characteristics of Shanghai," city culture,
Shanghai people have therefore chosen to consumer culture as a tourist object
of study of other equivalent cities in terms of reference of practical significance.
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
52
Appendix 2.5. Sampling of Shanghai touring market
This study used questionnaires to Shanghai urban residents as the main study,
in October 2007 in schools, communities, enterprises and institutions, as well as
leisure parks and other places of 600 questionnaires were distributed, 508 valid
questionnaires were recovered and efficient for 84.7%. The following researchbased samples constitute the basic situation:
The gender composition. Basically the same as the proportion of men and
women, respectively, the total number of 50.97% and 49.03%.
Age. 18 years of age constituted 3.9%, 19 ~ 25-year-old 34.42%, 26 ~ 35-yearold 25.97%, 36 ~ 45-year-old 25.65%, 10.06% over the age of 60.
Level. Junior high school and below 2.92%, high school, secondary school and
vocational school 23.38 percent, 63.64 percent undergraduate college and a
master's degree and above 10.06%.
Occupational composition. 6.17 percent government officials, enterprise
managers 9.42%, 27.64% staff, professional and technical staff of Culture and
Education 14.94%, 4.22% of workers, trade, service and sales workers 12.34
percent, 0.32 percent military, retirees 2.27 %, 15.58% students, 7.10% other.
In-family structure. 45.12% for single persons, married with no children were
9.42 percent, children were 3.57% for pre-school children, children for primary
and secondary school students from 23.38 percent, children were not around
2.92 percent, and adult children who live together 12.34%, other 3.24%.
Monthly family income. 1 000 below 8.12%, 1 000 ~ 3 000 42.53%, 3 000 ~ 5
000 32.47% 5 000 8 000 12.34%, 8 000 or above 4.54 percent.
Based on the above investigation, the survey in enterprises and institutions
engaged in the work of management and service account for a large proportion
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
53
of young and middle-aged, and they suffered high levels of education, personal
qualities and spiritual needs of a relatively high, there is a relatively stable
working environment higher family income and less obstacles for the provision
of tourism consumption and time of economic double protection, this study also
provides a more desirable and realistic basis for further study.
Appendix 2.6. Current situation of Shanghai consumer behavior
The development of tourism is the tourism consumption of consumer decisionmaking activities of a key link in the collection of information is directly related to
the quality of tourism decision-making. The survey found that people in
information-gathering, when there are three main ways, including directly to the
travel agents accounted for 19.81% of consultation, through the introduction to
the collection of friends and family tourism information accounted for 18.83
percent, through the network accounted for 39.61% of the inquiries. Shanghai to
participate in the investigation of the general public a year 1 or 2 times out, the
timing of the trend in the scientific, rational, choice of weekend trips accounted
for 17.86%.
Select summer travel accounted for 23.70% of selected New Year's Day, Spring
Festival travel accounted for 4.22%, to choose the rest of the time accounted for
25.32% of the travel. Family and friends in Shanghai travel companion of choice
for the target, there are 47.08% of people choose to travel with their families,
41.56% of people choose to travel with friends, the people of Shanghai reflects
the strong self-consciousness. Tourism focus on the distance of 100 ~ 300 km,
that is, around the city as a major tourist destination. the city's location and
history Shanghai has determined more by cultural influence of Western
civilization, with the characteristics of the pursuit of Westernization, while
outbound tourism is the general public can not be achieved short-term forms of
tourism, but the people of Shanghai to Australia, New Zealand, in particular,
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
54
reduced the enthusiasm of European countries. in the choice of means of
transport, in addition to the traditional mode of transport, the self-drive tourism
began to increase in line with the Shanghai "fashion, avant-garde" of cultural
identity.
Appendix III: Information of CITS
Reputation: Shanghai CITS, which enjoys a high level of history and civilization
in China, with a business history of over 50 years, it is the biggest international
travel service in Shanghai. Previously known as China International Travel
Service Shanghai Branch founded in 1954, it is one of the oldest travel
companies in new China. Shanghai CITS has long been engaged in foreign
affairs services and tourist reception and has accumulated rich experiences.
Branches: The business achievements and integrated strength of Shanghai
CITS are among the best of its kind in Chins. Since 1993 when China National
Tourism Administration began to access the nation’ s top 100 travel companies,
Shanghai CITS has always been on the top of the list.
Government: As a mainstay of Shanghai’ s tourism industry, Shanghai CITS
upholds the merit of sincere business management and quality service. As a
result, it has won attention and affirmation by our Party and government
authorities at different level and areas. On the separate occasions of 35th and
40th anniversary of the founding of Shanghai CITS, Jiang Zemin, the chairman
of China made the following respective inscriptions: developing travel will
increase economy, service our society, and strength the relationship among
countries.
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Appendix IV: Information of Turku Travel Markets
Appendix 4.1. Attractions of Turku
Turku Castle (Turun linna), Linnankatu reduced hours and closed Mon in OctMar low season. At the south tip of the city, near the ferry terminals. A must for
everyone visiting the city and is one of the country's most popular tourist
attractions. This old castle dates from the 1280s, and has been carefully
renovated. There is always some exhibition in the castle premises. Highlights
include the two dungeons and magnificent banquet halls, and a historical
museum of medieval Turku in a maze of restored rooms in the castle's old
bailey. Tours of the stronghold are given hourly in English. They give a good
account of the castle's history €7, optional guided tour €2.
Turku Cathedral, Towers over the river and the town and is one of Finland's
most important Cathedrals. Tours run 9am-7pm during mid September to mid
April and 9am to 8pm mid April to mid September. Free. Luostarinmäki,
In 1827 a fire destroyed almost all of Turku. Luostarinmäki was one of the few
areas that were saved, and now it hosts a handicrafts museum.
Aboa Vetus & Ars Nova,
This museum is actually two museums: Aboa Vetus
tells about the history of Turku, and Ars Nova is a museum of modern art. Aboa
Vetus is based on ancient remainings of old buildings and the Aboa Vetus
exhibition is located there.
Kuralan kylämäki, Dubbed a "Village of Living History", here you can see
newborn lambs and chicken (depends on time of year), as well as a genuine
Finnish farm from the 1950s. Very close to the city center but yet you feel like
you are in the country side.
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Turun taidemuseo
The regional museum of Finland proper. A central part of
the art life in Turku since 1904.
Ruissalo. A beautiful national park on a island located 6 km from the Kauppatori.
There is also a championship level golf course, Aura Golf, founded in 1958.
The Ruissalo Spa Hotel is its immediate vicinity.
Caribia spa and Posankka. Relax in the spa and see the famous cross between
a pig and a duck, Posankka. This pink statue was made by Alvar Gullichsen,
and it has become a known landmark in front of the spa.
Wäinö Aaltosen museo, An art museum named after Finnish artist and sculptor
Wäinö Aaltonen (1896-1966), whose statues of famous Finns and various
nationalist themes can be found throughout Finland. Perhaps the best-known is
the classical Greek-style statue of "Flying Finn" and nine-time Olympic gold
medalist Paavo Nurmi. Five copies of the statue exist, one in the museum, and
the statue's best known exploit was when students from the Helsinki U. of Tech.
snuck one onto the wreck of the 17th-century Swedish warship Vasa just days
before it was salvaged. The museum also hosts changing exhibitions of other
artists. €7.
Forum Marinum
and Suomen Joutsen
A national special museum that also
works as a maritime centre while having the famous Suomen Joutsen (Swan of
Finland) just outside of it. A ship that is considered as the national ship of finns.
Both are located just after the guest harbour when going down stream, you
can't miss it.
Appendix 4.2. The weather of Turku
Situated by the Baltic Sea and sheltered by the islands of the Archipelago Sea,
Turku has a hemiboreal climate. Like much of southern Finland, the city
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experiences warm summers, with temperatures ranging up to 30 °C (86 °F),
and relatively cold winters with frequent snowfall. The warmest month of the
year is July, with an average temperature of 17 °C (62 °F), whereas the coldest
month is February. The average year-round temperature is 5 °C (41 °F). Winter
usually starts in early December, and spring in late March.
Precipitation in Turku averages 698 mm (27 inches) a year. The rainiest month
of the year is August, when the city receives on average 79 mm (3.1 inches) of
rainfall. In May, the driest month of the year, the figure is only 35 mm (1.4
inches). The average air pressure at sea level is 1012 millibars, with little
variance throughout the year.
Operational since 1955, the city's weather station is located at an altitude of 47
metres (154 feet) at Turku Airport, according to the data shown in Table 2.
Table 2. Climate averages in Turku
Weather averages for Turku
De
Month
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Year
c
Record
8
11
16
25
30
32
36
32
28
19
11
10
high °C (°F) (46) (52) (61) (77) (86) (90) (97) (90) (82) (66) (52) (50)
Average
-2
-2
2
8
15
20
22
20
14
9
3
0
high °C (°F) (28) (28) (36) (46) (59) (68) (72) (68) (57) (48) (37) (32)
Average low
-8
-9
-5
-1
5
10
12
11
7
3
°C (°F)
(18)
(16)
(23)
(30)
(41)
(50)
(54)
(52)
(45)
(37)
55
40
43
37
35
52
76
79
68
74
-2
-6
(28) (21)
36
(97)
9
(48)
1
(34)
Precipitatio
74
66
698
n mm
(2.17) (1.57) (1.69) (1.46) (1.38) (2.05) (2.99) (3.11) (2.68) (2.91) (2.91) (2.6) (27.48)
(inches)
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Appendix 4.3. The culture of Turku
Cultural venues in Turku include several theatres, cinemas, and art galleries,
and a city philharmonic orchestra. The city's cultural centre organizes a number
of regular events, most notably the Medieval Market in July each year. Turku is
also the official Christmas city of Finland, and 'Christmas Peace' in Finland is
declared on every 24 December at the Cathedral of Turku. The Turku Music
Festival and the rock festival Ruisrock (held on the island of Ruissalo) are
among the oldest of its kind in Scandinavia. The city also hosts another rock
festival, Down by the Laituri, and one of the largest electronic music festivals in
Northern Europe, UMF (Uuden Musiikin Festivaali, "New Music Festival"), in
addition to a vibrant nightlife, centered around the Market Square.
There are also numerous museums, such as the Turku Art Museum and the
Wäinö Aaltonen Museum of Art. The Åbo Akademi University maintains the
Sibelius museum, which is the only museum in Finland specializing in the field
of music. Apart from these, there are also several historical museums that
display the city's medieval period, such as the Turku Castle, which has been a
functional historical museum since 1881, and the Aboa Vetus museum, built in
the late 1990s over the 14th century archaeological site(CHRISTINE
LIM,MICHAEL MCALEER, 2002). The Luostarinmäki handicrafts museum,
converted from residential buildings that survived the Great Fire of Turku in
1827, was the first Scandinavian venue to receive the "Golden Apple" tourism
award.
Turku is going to be European Capital of Culture in 2011, and the city council
has approved numerous projects to boost the city's image in preparation for that
status.
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The Cathedral of Turku, one of the most notable historical buildings in Finland.
The Declaration of Christmas Peace has been a tradition in Finland from the
Middle Ages every year, except in 1939 due to the Winter War. The declaration
takes place on the Old Great Square of Turku, Finland's official 'Christmas City',
at noon on Christmas Eve. The declaration ceremony begins with the hymn
Jumala ompi linnamme (Martin Luther's Ein' feste Burg ist unser Gott) and
continues with the Declaration of Christmas Peace read from a parchment roll in
Finnish and Swedish.
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Appendix V: Questions for Telephone Interview
•
Question1: How many people are planning to go oversea to travel
recently? Can you give us some detailed statistics?
•
Question2: How much would they afford to do this? With what
frequencies?
•
Question3: By how long time would they afford to do the overseas’
travelling?
•
Question4: Given the detailed information of Turku, what is your
estimation about the growth of people who will plan to go Turku? (after
2011)
•
Question5: Which travel agent they would choose to cooperate except
CITS?
•
Question6: Which kind of the cooperation mode u would like to choose
within the local government by terms of acquiring supports?
•
Question7: Would it be possible for your company to set branches at
Turku? If not, in what conditions will your company usually set branches
in foreign places?
•
Question8: What is the expectation of your company towards the
business cooperation with Turku? With how much cash would your
company possibly invest on this project?
•
Question9: why you choose Turku? What’s your opinion of Turku?
TURUN AMK:N OPINNÄYTETYÖ | Chunyang Wang
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