Working in Market - China

Distribution system

There have been over 2,000 licensed outbound travel agencies in China, which are located in all 31 provinces and municipalities. Based on geographic location, people’s purchasing power and economic development situation, China outbound tourism market is usually rated by tier 1, tier 2 and tier 3 market. 

• Tier 1 market is being Beijing, Shanghai, Guangzhou, Hangzhou, and Shenzhen;
• Tier 2 market is being Chengdu, Chongqing, Xiamen, Fuzhou, Wuhan, Changsha, Nanjing, Qingdao, Tianjin, Xi’an, Shenyang,
• Tier 3 are those inland cities and provinces. 

Based on air capacity and visitor trends, Tier 1 markets remain strongest for Australia, however, Tier 2 and Tier 3 markets continue to grow.

Since China reopened its borders in January 2023, demand for outbound travel to Australia has been growing steadily. This is due to airline partners rapidly reinstating and increasing their frequencies and capacities to Australia, making international travel more accessible Chinese travellers.

The travel distribution system in China has diversified and evolved over the years. Among the licensed outbound travel agencies operating travel businesses to Australia, some operate under the Approved Destination Status (ADS) Scheme. Free Independent Travellers (FIT) is an increased focus for many outbound agencies, as well as tailor-made and luxury travel opportunities.

Airlines operating directly between China and Australia are (subject to update from time to time): 

Wholesalers

Commission level: Subject to individual business deal between seller and buyer

• Wholesale travel agencies cater mainly for ADS group business. 
• The wholesalers also penetrate retail operations within the same business, i.e. through its own online store, and are recognized as both wholesalers and retailers.

Retail agents

Commission level: Subject to individual business deal between seller and buyer 

• Many retail travel agencies have been reinstated and are gradually expanding their retail outlets or stores to make easy access for consumers who prefer one-on-one service and assistance securing a booking.
• Retail agencies are shifting their focuses to tailor-made, family and small party businesses and provide on-time support for their customers before, during and after travel.
• Luxury travel agencies are retail operators who are getting matured and cater for Luxe and HNWIs’ growing demand.

Online

Online bookings are becoming more dominant than booking from traditional channels.

• Some online travel portals such as Trip.com, Qunar.com, Mafengwo, Tongcheng.com and Tuniu.com have been very successful in the market. They not only offer variety of products through mobile devices/app, but make associated services, especially mobile payment services, to consumers, more transparent, instant, trackable, hands on, and therefore, overall customer journey more intimate and friendly. 
• Traditional travel agencies, either wholesale or retail, are making use of third-party portals to promote their products, such as Ctrip.com, fliggy.com, Tuniu.com, Red Book, TikTok…

Aussie Specialists

• The Aussie Specialist Program (ASP) is the primary platform for Tourism Australia to train and develop retail agents to sell Australia. Each State and Territory has a module on the ASP website. 
• There are over 12,000 qualified Aussie Specialists in mainland China. This includes 67 ‘Premier Aussie Specialists’, recognised with Premier status for their extensive knowledge of the destination, commitment to selling Australia and ongoing learning via the Aussie Specialist Program. 

Inbound tourism operators

Commission level: Subject to individual business deal between the operator and distributor

• Inbound Tour Operators (ITOs) are a vital link in the travel distribution chain in China and must be approved under the Approved Destination Scheme (ADS) to handle ADS group business. Tourism Australia recommends that Australian suppliers only deal with approved travel agents and ITOs for all ADS inbound business from China.
• Key ITOs servicing the market include:  
  • A China
  • AOT Group (AOT/ATS/ETA)
  • APH (Australia Premium Holiday)
  • Australian Tours Management
  • AU Kings Tour
  • Auga Travel
  • Aus Wonder
  • Australia & Beyond Holidays Pty Ltd (AABH)
  • Blue Travel Pty Ltd
  • Dixon Travel and Tour
  • Easy Going
  • Equity Travel
  • E-tours Australia
  • Eversun
  • Grand Aust Tour
  • Grandview Travel Pty Ltd
  • New Star
  • Pioneer Travel
  • PTC
  • Sunland Travel
  • Swallow Holidays Australia, NAPT

Approved destination status (ads) scheme

• Chinese consumers travelling in a group under an ADS visa for Australia must book through an approved ADS travel seller. Australia was one of the first Western countries to gain Approved Destination Status in 1999. There are now 140 countries and regions approved under the scheme.
• There are currently 80 Australian Inbound Tour Operators (ITO) and around 60 Chinese outbound travel agencies in the ADS network. These agents and operators are required to comply with the ADS Code of Business Standards and Ethics. Tourism Australia has several of the ADS approved agents within the key distribution partner (KDP) program.
• Austrade manages the scheme in Australia with the support of Tourism Australia and the Department of Immigration and Border Protection. For further details please visit:
  www.austrade.gov.au/Australian/Tourism/Working-with-China/ADS

Key Distribution Partner (KDP) Program

Tourism Australia launched its KDP program in late 2014. The objectives of the KDP program are:

• To select and appoint key outbound travel agencies in China who represent a benchmark of quality in the China travel industry.
• To demonstrate a role model for China travel industry on how to promote Australia as a destination through sustainable business practices and quality product development targeting the FITs and high yield travellers.
• To leverage KDPs’ strong advocacy, influence, and distribution networks to better serve TA’s China overall strategy.
• KDP agencies are given access to e-lodgement of Australian Visa by Immigration of Home Affairs, which makes it possible for them to apply for the Australian Visa online for their customers, who can then travel individually to Australia multiple times within validity of their visa. 
• Tourism Australia China relaunched the KDP program in 2024. The new iteration of the program has been revised based on current insights and trends. Based on the new criteria, Tourism Australia, DFAT and STOs have jointly confirmed 40 China outbound travel agencies.
• The 40 KDPs are located in Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Nanjing, Qingdao, Zhengzhou, Shenyang, Xi’an, Wuhan, Changsha, Xiamen, Fuzhou, Chongqing, and Chengdu,
• The benefit of working with these KDPs is that they have met criteria that confirm them as a recommended partner for the market.

The Following is a list of the 40 KDPs:

Planning to visit a market

Top tips for sales calls

• Liaise closely with local representatives from your State and Territory Tourism Organizations.
• Ensure you have relevant product information and business cards produced in simplified Chinese.
• Both travel agents and consumers use brochures to obtain further information about products.
• WeChat, TikTok and RED are popular social media APP by the number of active users in China.  Live streaming through the APP is an effective way to communicate with trade and consumers.  Suggest set up your own WeChat account and link to Chinese travel agents for better engagement.
• Pre-arrange your appointments at least three weeks prior to your arrival by email and phone.
• Reconfirm your appointment on arrival into China and consider traffic conditions and travel times to your destination.
• Highlight your product or service in simple English and ensure sales calls are no longer than 30 minutes. Bring a gift to exchange.
• Hiring an interpreter is helpful as many service providers and agents generally do not speak English.
• A casual meeting approach is preferred, such as inviting key agents for a meal or drinks.
• The majority of agents work through ITOs and no direct rates are expected.
• The best time for sales calls is March to May and September to November.
• For more general information on sales calls and planning a visit to market, please see Tourism Australia’s Tourism Export Toolkit.