The 'incentive' market

The report also showed that incentive trips have a huge market potential. Some companies in China are generous in encouraging their employees, providing free travel for those who achieve their specified goals. A manager of a big private company said he thinks the incentive trip concept is vital to modern management. Its purpose is to help the company accomplish its objectives and "it goes without saying, to reward meritorious workers." Statistics from the travel agencies show that the profit from an incentive trip group is five times that of an average tour group.

"Incentive travel is becoming a new growth area, thanks to its large market potential and stable profits," said Zheng Hong, Board Chairman of GZL International Travel Service Ltd. Incentive travel is financed by companies who entrust travel agencies to design extraordinary travel plans for their employees. "Incentive trips must be unique and should leave the tourists with an unforgettable experience," said Zheng.

A couple of years ago, Metropolitan Life Insurance Co. (Beijing) spent $4 million on an incentive tour for 400 people, according to Yang Yushan, Chairman of China Peace International Tourism Co. Ltd., which arranged the trip. He added that business trips, international conferences and incentive trips are major areas his company has been exploring. The company also joined the Society of Incentive Travel Executives, becoming its only member in China's mainland. What's more, it has registered its China Incentive Trip website in the United States, hoping to link the traditional tourism mode with electronic commerce.

However, such incentive trips have very strict product design and service standards and aim to provide a unique cultural experience. Wang Qing, an official with the Beijing Tourism Administration, pointed out that high-end tourism needs cooperation from various sectors to handle environmental, transportation and security problems. Support from the government is also necessary, he said.

Beijing began to develop its high-end tourism project in 2000, but so far it hasn't gained much public recognition, partly due to the lack of promotion.

The competition among high-end tourism products focuses on two things: individuality and uniqueness. According to Wei of the China Tourism and Culture Resource Development and Promotion Association, standard tourism products vary very little, with competition chiefly focusing on price, while high-end tourism products are not standardized. "Judging from international practice, high-end tourism has evolved from standard products to individualized service. Not too much money, but the best tourist service--that is what high-end tourism is really about," he added.

Despite the growth, high-end tourism in China still lags far behind the regular tourism industry. Statistics show that it accounts for less than 1 percent of the global high-end tourism market. Thus, viewed from another angle, it has an enormous space to develop.