With the advancement of the Belt and Road Initiative and the upcoming 2018 EU-China Year of Tourism, brighter prospects have been placed on the development of China’s outbound travel market to Europe.Driven by the strong performance of China’s tourist arrivals in Europe in 2017, Europe has become the third-largest destination region for Chinese outbound tourists, after Southeast Asia and East Asia.

However, traditional European tour products featuring low standards and rushed itineraries can no longer satisfy Chinese travelers.The market is no longer rigid and unchanging. Many consumers are no longer content with standardized, mass-produced tour packages of the past, nor do they have to passively accept assembly-line products offered by travel agencies.Consumer demand has shifted from function-oriented and brand-focused consumption to experiential and participatory travel.

MS StarRiver Art 

Consumers with spending power who have grown tired of traditional travel styles are eager to find alternative ways to travel.Against this demand, inland river cruises — distinct from fixed forms like traditional group tours and independent travel, offering personalized, highly flexible and high-quality services — have become a differentiated product that embodies consumption upgrading.Compared with bus tours, for the same 6-day 5-night itinerary, guests do not spend time traveling on the road.The ship sails at night while passengers sleep, ensuring at least 8 hours of sightseeing time each day, sometimes as long as more than 10 hours.

In addition to city sightseeing, we also offer optional in-depth tours to Salzburg, the Outlet Shopping Village, Český Krumlov – the Pearl of the Middle Ages, and Hallstatt, known as "the most beautiful town in the world".There is no need to pack and unpack luggage every day, making the journey extremely comfortable and enjoyable.Furthermore, the meals feature national banquet dishes from the countries we pass through.

For example, we serve Wiener Schnitzel in Vienna and pork knuckle in Germany.On traditional tours, guests would have to pay a lot extra for such local specialties, but all are included in one price on our cruises.This is exactly how we use river cruise products to solve the pain points of traditional European tours. 

Becoming an Uncopyable "Unicorn"

In contrast to the rapid development of ocean cruises, inland river cruises have long been overlooked by the Chinese market.

In fact, inland river cruising represents a vast blue ocean with great potential, and is especially significant for attracting overseas tourists. 

Success becomes easier when you find gaps in an otherwise seemingly impenetrable market, and develop a brand-new business model based on your company’s actual strengths.

“If in the past couple of years we only introduced inland river cruises to China, then in 2019 we must face market competition and create a new blue ocean.

In 2016 and 2017, we were a charterer, much like many charter flight companies. But in 2018, we acquired our own vessel, transitioning from a charterer to a genuine river cruise operator and asset owner.How does StarRiver Cruises maintain its unique advantages in the river cruise sector?

Firstly, owning our own ships is our primary advantage. 

Secondly, whether as a former charterer or current operator, all onboard accommodation and catering services are customized and directly operated by StarRiver Cruises.Starting in 2016, we have been establishing service standards tailored for Chinese travelers. For example, on top of the standard Western breakfast offered at European star-rated hotels, we add traditional Chinese breakfast items such as steamed buns, mantou, congee, and noodles.We also provide mixed Chinese-Western lunches. We have even brought mahjong tables on board, added onboard group dance activities, children’s handicraft sessions, and other interactive events.

Third, StarRiver Cruises maintains a clear positioning on ship star ratings.We are committed to delivering affordable luxury 4-star and above service standards.We rigorously evaluate every detail: the ship’s year of construction, engine lifespan, interior decoration standards, safety facilities, boilers, laundry equipment, and even the number of fire hydrants.Our goal is to create a safer, more comfortable, and superior experience for our guests aboard a “moving residence” on the river.We have been thinking about how to build StarRiver Cruises’ competitive barriers and avoid being quickly copied by competitors.

In my view, establishing Chinese-style service standards for inland river cruises is precisely our core competitiveness and value that we aimed to achieve in 2018.” 

After the O2O boom, more and more enterprises have realized that the real battlefield lies in the B2B sector.What does it take to win the competition here?“There has indeed been such a saying.Coupled with the destructive effect of the vicious industry cycle caused by low-price competition in the cruise market, I want to convey an important concept:As a resource owner and a more down-to-earth operator of four-star and above inland river cruise products, StarRiver Cruises holds more than 80% of the market share.Our service positioning is to serve B‑end clients, with inventory clearance as our top priority.This is a Chinese characteristic in terms of sales methods, and also what we, as a local river cruise company, are able to do.”

However, in an era when monopoly is increasingly difficult to achieve, as a form of commercial competition without smoke of gunpowder, almost no enterprise can avoid or turn a blind eye to price wars.“When more players enter this product segment, price wars are almost inevitable.StarRiver Cruises has the responsibility to lead the market price, not follow others in driving it down.Our prices have remained stable for three years.River cruises have been developed in Europe and the United States for 50 years, and prices there have always been very stable.We should protect this price system and let quality lead the competition.

At the same time, we will build conversion barriers and enrich our product lines beyond the Danube and Rhine, adding routes such as the Volga, Nile, Seine, and Bordeaux.Currently, 70% of our customer base is the senior market.

We focus on encouraging their second and third purchases, offering them an upgraded travel experience in a different way.” 

Although a blue ocean area once developed will eventually turn into a highly competitive red ocean,isn’t it true that taking the lead, seizing the first-mover advantage, and innovating operations make a business model far more likely to succeed?

Source: Travel Agency News Network