TUI to play the European card

Updated: 2011-12-02 11:05

By Yan Yiqi (China Daily European Edition)

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"That is our home ground where we have been grown up. We know our territory very well," he says.

With Chinese employees taking care of their outbound travel business, Schneider expects the combination of their in-depth knowledge of Chinese outbound travel market, and knowledge about Europe will help bring something unique for customers.

"To reinvent the route is difficult, but I think we can spice up and add new elements into the existing routes which will make our target clients find a program which is more in-depth and less stressful," says Schneider.

At the same time, the company does not have any plans to take its outbound business to the masses.

"When it comes to outbound travel, the competition is intense in China. We intend to concentrate more on the premium segment, and try to bring in new elements," Schneider says.

He believes that since Chinese competitors have already done an excellent job in the outbound market, there is very little room left in the volume market, which he thinks is price-driven and price-sensitive.

"We do not want to compete on price alone, so I think our target clients will not be people who have not been abroad, or people who have not been to Europe. That will be repeating travelers who have certain experiences of Europe, and want to experience the destination in a greater detail. Fluent repeating long haul travelers will be our target clientele," he says.

Schneider explains that although the development of China's outbound travel market has been faster than the European one, it will still take decades for most Chinese to make their first trip to Europe.

"But when it comes to the second and third visits, the time gap will be smaller and they will want a different experience, and that is what we want to capitalize," he says.

According to a survey conducted by the China Tourism Academy, more than 80 percent of the outbound tourists have received higher education, and 35 percent of all tourists are willing to spend an additional $3,000 (2,219 euros) to $5,000 during their tours.

"We see the outbound travel market as high education, high income and high purchasing power," says Dai Bin, president of the academy.

"That is why the Chinese market is waiting for more outbound programs with higher quality that only a small section of Chinese can currently provide," he says.

Of the 1,243 local travel companies who are qualified to conduct outbound travel programs in China, most focus on the mass market with low prices and almost the same schedules to attract consumers.

However promising the future market will be, TUI China is not in a rush to release its outbound programs.

"I think it's the European gene. If we are to offer something, we want to offer something professional, and very well thought through. We have been waiting a very long time to get the license, so we want to do it right from the very beginning," says Schneider.