These are excerpts from the China Outbound Travel Handbook, newly updated for 2006 and available to purchase from ChinaContact.

Outbound travel periods

Travel takes place throughout the whole year. As about half of outbound travel is for business and official travel, it is not reliant on peak seasons. Domestic and regional travel is often booked at the last minute. This is also true for European destinations, as the agent could not know if the visa application was successful until one or two days prior to departure. With more information available on the overseas destinations (climate, prices, attractions, events, etc.) and more accessible visa procedures, customers have started planning longer ahead. Nowadays agents can advertise tours one or two months in advance and receive bookings, safe in the knowledge that a tourist visa can be obtained.

Paid holidays are not common, which is why people tend to do private travel only during the public holidays. A public discussion is ongoing on whether to introduce more paid holidays in order to spread the tourism flow throughout the year. This might be implemented in the near future.

Employees of international companies or foreign-invested companies enjoy better conditions, with up to 12 days a year of paid holiday in addition to the national public holidays. These white-collar workers are also higher paid and form an attractive potential market sector for outbound travel.

Sales and marketing to the trade

Chinese consumers and trade are different from the West, and selling to them is the main challenge for new entrants into this market. Adaptability, creativity, and willingness to listen and be flexible with plans will be rewarded. Frequently, strategies will need to be adjusted or refocused to keep in line with a fast-changing marketplace.

The Swiss National Tourism Office, German Tourist Office, Italian Tourist Board, Maison de la France, Finnish National Tourist Office, and Visit Britain have now all established themselves as well-known travel promotion organisations in China. Their extensive network within the trade and media is an excellent gateway to the Chinese market.

National and regional tourism boards have the option of using a local travel consultancy to deliver tailor-made marketing strategies before they embark on establishing their own branches.

Chinese business is based on personal relationships and trust. When selecting a local partner, agent, or representative, consider their existing personal networks with the travel trade, media, and government.

Maintaining good relations with the China National Tourism Administration (CNTA) and its local branches cannot be stressed enough. CNTA is responsible for implementing the ADS policy, and their public or tacit approval is always needed. Any marketing campaigns should be reviewed with them to ideally gain their approval and cooperation at both the national and local levels.

The initial partners for marketing campaigns are often the 672 certified international travel agencies that are authorised to handle tourist groups. They are in direct contact with targeted customer groups. Profitable cooperation will come through when designing a joint promotion and marketing campaign. A win-win solution found through incentive schemes or marketing cost sharing is advised. Cooperation can include further parties such as airlines, media, and other overseas travel organisations (hotels, shopping areas, attractions, etc.). Though more complicated, cooperation is also more effective and allows the agents to offer a fully designed package.

Travel agents are eager for practical information in order to understand overseas destinations, since they themselves have not travelled abroad much. Familiarisation (FAM) tours are very useful and serve to enhance mutual relationships. Cooperation should be planned for long-term profit, as the industry is still in its developing phase.

FAM tours are not only useful for raising awareness, but also for improving relations with key contacts. The cooperation of different tourism-related bodies—to provide a seamless package to the consumer, as suggested above—helps overcome the agent’s lack of knowledge and initiative in promoting new destinations.

Any new marketing campaign will require high-profile press events and direct contact with the trade through newsletters promoting new itineraries and products. Involvement of either government bodies or one of the main Chinese tourism groups will help with the publicity and the follow-through. Attention should be paid to the dominant players in each geographical region. Plan your campaign in a gradual way, since it is impossible to cover all of China with one single campaign. This market is too large and shifts constantly as it develops.

Since Chinese place high value on famous brand names, marketing strategies can be adapted to suit. Joint promotions that play into this characteristic—with famous brands of electronics, drinks, watches, cars, etc.—have a higher chance of success. Certain target groups cannot be easily reached through the mainstream retail travel sector. These include the affluent, corporate, and incentive travellers. In order to market to them, other channels should be tapped; this will require assistance from local specialist consulting companies, trade groups, clubs, associations, and government bureaus.

• Read about the experience of Britain since gaining ADS

Promotion and marketing are now the vital tools in exploiting the market potential. Consumer target groups require more information on the range of products available to raise their level of sophistication when making travel choices. Most popular tourism destinations have signed ADS agreements with China, while countries like the United States and Canada are in negotiations. Already Chinese have nearly as much choice as tourists in Western countries, and competition for their business is fierce. Destinations and Companies that intend to tap into this market must establish an early presence and be willing to adapt and develop their products and services as needed.

Exhibitions and conferences remain a good introduction to the China tourism sector, but they should be selected carefully and approached with preparation. Click here for details on China's travel trade events and how China - the future of Travel will help you decide which ones are worth your investment.