Three major trends of cross-border integration of tourism under the Int ernet wave: the integration of industry chains, two-way interaction between online and offline, and the profound combination and integration of tourism and lifestyle

As tourism gradually becomes a way of life, tourism will not only be about food, accommodation, transportation, travel, shopping and entertainment, but also a cultural experience and the exoticization of local life.The structural adjustment of the service industry is guided by the tourism industry as the leader, indicating that the tourism industry will play a more important role in the future industrial upgrading and restructuring of GDP. Tourism has become a way of life, not only food, accommodation, travel, shopping and entertainment, but also includes cultural experience, a kind of local life in a different place. Cross-border and integration in the future there are several trends: the integration of industry chain, two-way interaction between online and offline, profound combination and integration of tourism and lifestyle.

First of all, I would like to give you a brief introduction of Deaconess. We focus on big consumption, big leisure and big tourism. We provide tourism video marketing, Internet marketing, social marketing, precision marketing and tourism business model, product consulting and other services for domestic and foreign tourism boards, destinations, hotels, travel agencies, OTAs, new online travel companies, etc. We take tourism O2O information, research, marketing case studies, video marketing, product consulting, in-depth reports and other quality contents as carriers, and accumulate deeply in the field of tourism content marketing. So what is tourism big consumption? We understand that tourism is no longer simply airline tickets, hotels, lines, but a lifestyle, a fusion of industries. So in the context of this integration, what Deaconess wants to do is to use the thinking of the Internet and think about this industry from the perspective of the Internet.

First, focus on the integration of the entire industry chain offline. With the popularity of the Internet, the tourism industry chain has undergone profound structural changes in the past few years. Second, when O2O has become a ubiquitous concept, we can see that, in fact, the interaction and integration of online and offline, as well as the change of the industry structure, has just begun. Third, it is a small feeling and sentiment, hoping to do our best to help the tourism industry chain to upgrade a little.

The cross-border and integration of the tourism industry has just begun. Although cross-border and integration are not new in the context of a larger industry, they have just begun for the tourism industry. According to Goldman Sachs, China’s GDP growth rate will only be 5% to 6% over the next 5 to 10 years, which is a slightly pessimistic growth rate. But at the same time, we also note that the service sector already accounts for more than 50% of China’s GDP, and 87% of GDP growth. This means that the structural adjustment of the service sector is guided by the tourism industry, which will play a more important role in the restructuring of GDP in the future industrial upgrading. After we see such a trend, the first thing we need to understand is a basic form of cross-border and integration of tourism in the context of our larger industry.

Let’s make a small comparison between China’s GDP per capita and the U.S. GDP per capita, and a simple comparison between the number of air travels per capita in China and the number of air travels per capita in the U.S. China’s GDP per capita this year is just over $8,000, which is only equivalent to the level of the U.S. in the 1970s and 1980s, while the U.S. GDP is currently at $55,000. Then we can compare the number of airplane rides between China and the United States, and then we can see that the current per capita number of airplane rides in China is less than 0.5 times, while the United States exceeds 2.5 times, at about 2.7 times. Through these two comparisons, we can see that the development of China’s tourism industry has at least 5 to 6 times more room to grow, if calculated according to the current 4 trillion market, the future can reach at least 20 trillion market, and this speed also means that the cross-border integration of tourism has just begun. According to the relevant data, China’s per capita GDP disposable income has reached 5,000 US dollars, so if we look at the figures together, we actually have a very good foundation for cross-border integration in tourism.

I have always believed in the transformation of technology for industry and society, as well as the transformation of human behavior and social development, and I believe that this transformation is extremely profound. In the past 20 years, with the development of Internet and mobile Internet, we have experienced the transition from PC Internet to mobile Internet, and the watershed was the popularity of Apple cell phones in 2008. Over the past 20 years, the mobile Internet has grown rapidly as the number of smart devices with cell phones per capita has increased dramatically, and our lifestyles have changed. Relevant data shows that the number of cell phone use per capita has exceeded 200 times a day and the time spent on cell phones exceeds 200 minutes a day, though of course some people may spend more. Cell phones and other smart devices have become organs of our bodies. But this year, according to a report, smartphone shipments have slowed down and reached a state of saturation. And VR is gradually becoming a new trend and future, we can see that the power of technology has never been profound and dramatic. From mobile Internet, to mobile payment, and the reliance on smart devices, these are the changes of technology on our living habits, applied to the way of travel experience, the power of these technologies will also have a faster and more profound impact on the future shape of tourism, industrial structure.

Millennials have become the new consumer group. Millennial personalization is changing along with the digital age. Post-80s like me, although experienced the transition from PC Internet to mobile Internet, but need a period of adaptation to gradually accept these changes, but our company employees after 90s no adaptation period at all, very comfortable in mobile devices to switch freely. For example, reading books, the post-90s will think that reading e-books is more comfortable than paper books, I may not be able to accept, I may feel that paper books have more feeling. From these simple changes we can find that millennials are more optimistic, more tolerant, work-life balance, so there may be no reason for an employee to take time off, just want to travel, want to see the world. Millennials also have one of the most critical characteristics: the attitude towards money, that if you earn it, you spend it. This means that in the future, people will not save, but will pursue a more experiential travel product, a more experiential life, a better lifestyle.

So, when the consumer base of this society becomes millennials, every industry will undergo a more profound change. The tourism industry, for example, will no longer be the initiative of our tourism industry to change anything, but more likely to be stimulated by the new consumer demand of the future millennials to prompt us to make some adjustments and changes. As tourism gradually becomes a way of life, it will not only be about food, accommodation, transportation, travel, shopping and entertainment, but also a cultural experience, an exoticization of local life. Then our single, monotonous, relatively fixed traditional tourism products will be difficult to meet the consumption characteristics and experience of the mainstream of the millennial generation. Because this generation’s pursuit of lifestyle and requirements for experience are far more than those of our previous generation.

The essence of cross-border is integration and fusion. Speaking of cross-border, from the background map we see that a lot of borders have been drawn, but the borders have been violently disrupted, turning into a border of mutual integration is more obvious.

I think the essence of cross-border is integration and fusion. For example, the theme of “cross-border” proposed in this conference has actually made a good start, reminding all our colleagues who are concerned about tourism to pay attention to the change of industrial form.

First of all, in the context of China’s economic growth slowdown, the global economic structure recovery is relatively weak, cross-border will gradually become a trend. Secondly, China’s per capita disposable income has increased, consumption upgrade has become a major trend, smart device coverage has become a scale, and mobile consumption habits have been developed.

Regarding the above two trends, we can see that the major OTAs are relying on mobile and investing in mobile are very huge. The whole industry is making profound preparation and preparation for the mobile Internet transition layer.

This is the integration of the industry chain between upstream and downstream from the macro level in the tourism industry in the past two years, and the interaction between online and offline, whether from offline resources + online platform, or offline integrated resources + online platform, or online channels + offline channels, there have been greater actions and changes in deepening the interaction of the industry chain, which is a very good start.

In these cases, the combination of each family and finance is currently the most attempted, whether it is Ctrip, Where to go, Tuniu, Tongcheng, have done a lot of exploration on the financial level, from all levels of product upgrades, so as to meet the millennial consumer group in the lifestyle of more experience, personalized, mobile characteristics of travel consumption. For example, Ctrip has launched the food Merlin, CenturyLink has developed in-depth tour products, and Zongxin’s pension tourism, etc.

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