July 12, 2024: China Market Update
Alina Xiang
President & CEO, East West Marketing ◆ China Tourism Expert ◆ Trusted Marketing Partner to Travel and Hospitality Clients
Latest News
Both countries are optimistic for more inbound travelers on the back of bilateral cooperation, face-to-face exchanges
Vincenzo Perretta, CEO of Volatour, a travel agency based in New York, is looking forward to the implementation of more favorable tourism policies, he said during a recent trip to Xi'an, Northwest China's Shaanxi province.
The US counterparts at the summit say they are also on the move to win back Chinese travelers.
Julie Stufft, deputy assistant secretary for Visa Services with the US Department of State, says China was the number one demand market for US visas and the US side is very eager to get back to that level.
China is willing to work with the US to deepen tourism cooperation, expand cultural and people-to-people exchanges, and lead mutual learning among civilizations.
Source: China Daily
Outbound Market & Industry News
China’s outbound tourist numbers are expected to reach 140 million in 2024, a 50% increase over 2023 and there has been a huge increase in travelers.
As of Q1 of 2024, the domestic traveler numbers in China had reached 180 million, according to the China Tourism Academy.
Source: TTN News
Air China, one of China’s major airline companies, plans to schedule more international flights during the upcoming summer travel rush to cater to passengers' needs and facilitate China's global civil aviation market.
By doing so, Air China's international and regional flight network will be restored to over 90 percent of the level in 2019, totaling 114 routes connecting 43 countries and regions worldwide.
Source: China Daily
The top destinations include Shanghai, Beijing, Guangzhou in South China's Guangdong Province and Chengdu in Southwest China's Sichuan Province.?
So far this year, bookings for trips to China from Australia jumped by 155 percent year-on-year, while those from New Zealand increased by nearly 60 percent.
In the first quarter of 2024, the number of entrances and exits made by foreign nationals jumped by 305.2 percent year-on-year to more than 13 million, the data showed, according to data from the National Immigration Administration.
Source: Global Times
The Ministry of Culture and Tourism has pledged further efforts to boost the provision of diverse cultural and tourism products.
China’s Ministry of Culture and Tourism has pledged further efforts to direct localities in boosting the provision of diverse cultural and tourism products such as seaside and aquatic activities, entertainment performances, theatrical and music festivals, concerts, exhibitions, food, and other themed markets.
Covering more than 4,000 consumption categories, these events will be held during the typical peak season for traveling and consumption, along with favorable measures for consumers, such as the provision of coupons, discounts, and cheaper package deals.
领英推荐
Source: Xinhua
Since the beginning of 2024, Trip.com Group's stock price has increased by nearly 50%within six months, adding almost HKD 100 billion (USD 12.8 billion) which is the biggest increase among the Chinese internet giants.
The online travel group now ranks the 7th in market capitalization among China’s internet giants, according to the calculation by local media.?
Source: China Travel News
East/West Insights
Q+A with Yan An, Aurora Travel
Aurora Travel specializes in providing luxury custom travel experiences. Their comprehensive services cater to both leisure and business travelers. They offer personalized visa assistance, flight bookings, and top-notch accommodation arrangements tailored to meet the unique preferences and needs of their clients.'
Q: With recent positive developments in various aspects, what are your expectations for the outbound travel market to the United States in 2024? What is the expected recovery level/percentage of tourist numbers?
A: Aurora Travel's business has nearly returned to pre-pandemic levels, with the U.S. market recovering to around 80%. The high-end travel segment, particularly among business travelers, is experiencing rapid growth.
Q: What is the overall demand of customers for American products at present?
A: After the pandemic, travelers' purposes for travel have become more defined. Many visitors now tend to stay in an average of two cities, with some even staying in a single city for over a week. This indicates a significant shift in travel habits among Chinese tourists post-pandemic, particularly among high-spending groups, who are increasingly inclined towards in-depth travel experiences.
Q: Apart from conventional products on the East and West Coasts, are there any plans to introduce more in-depth or new emerging destination products in the coming year?
A: There are many people asking about traveling to Hawaii during the summer. But since there are no direct flights right now, many travelers are worried about the tiredness from having to change planes. Because of this, many families with elderly members and children are choosing to go to places in Southeast Asia instead.
Q: What are the main challenges you are facing in product development and marketing?
A: After the pandemic, many local hospitality resources in the United States have changed significantly, and prices have increased a lot. These factors have further affected Chinese tourists' trips to the United States. Information platforms and opportunities for face-to-face communication have become even more important during this time.
Q: In the process of product development and operation, what kind of assistance and support do you most need from the destination?
A: During the pandemic, the tourism industry lost many skilled professionals. As the pandemic ends, more and more new talents are joining the tourism industry, bringing renewed vitality. However, as employers, a major challenge is that new employees may not be familiar with the destinations. We hope to have more fam trips available, especially for new employees, to help them better understand destinations in the United States and globally.
Notable Key Aspects
US officials are eager to regain Chinese travelers, with Julie Stufft from the US Department of State emphasizing the high demand for US visas from China. China and the US are looking to enhance tourism cooperation and cultural exchanges.
Air China plans to restore over 90% of its international flights to pre-pandemic levels this summer. Travel bookings to China have surged. In the first quarter of 2024, foreign entries and exits in China increased significantly.
The Chinese outbound travel market has reached 69% of its pre-pandemic capacity. Key data points: