Marketing When They Come - Capturing the Resurgence of Chinese Travelers in 2024

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Many years ago, I had a meeting with representatives of a travel destination to discuss the potential of attracting inbound Chinese travelers to their region. During our conversation, one gentleman expressed the view that marketing efforts should only begin once Chinese tourists had already arrived. He summed up his perspective by saying, "We will market when they come." At the time, I found this idea rather absurd. After all, marketing is typically seen as the means to generate sales, and without marketing, how would people even know about your existence?

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Of course, there are travel destinations like New York, London, and Paris that enjoy widespread recognition. They are renowned in the travel industry and often do minimal general marketing. Instead, they focus on niche audiences, such as meetings, incentives, conventions, and exhibitions (MICE) travelers, tailoring their efforts to maximize profitability.

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However, I started to see some logic in the notion of marketing when you observe a specific tourist segment actually arriving in your region. While it may seem unconventional at first—given that marketing is essential to attract customers—it occurred to me that for most destinations outside mega-cities like New York, London, or Paris, marketing to a vast country like China could be challenging in terms of resources, bandwidth, and budget. This is where national tourism destinations, regional marketing organizations, and industry groups come into play.

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The idea of waiting and observing before launching marketing efforts began to make sense. When you notice a particular tourist segment walking down the streets, having breakfast in hotels, it presents an opportunity to expand your business to cater to these tourists.

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I recently had a conversation with the general manager of a well-known luxury hotel in Italy who shared his practice of having breakfast with guests in the restaurant. He explained that this practice serves two purposes: to meet and greet guests personally and to understand the demographics of the guests. By doing this, he conducts his own market research, profiling his guests, identifying their interests, and how they change throughout the seasons.

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Based on this firsthand information, he tailors the hotel's marketing strategies. For example, if the guests are predominantly Italian, he knows that's his primary market. If Germans fill the rooms on weekends, he understands the need for weekend leisure marketing to target them.

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While this approach may seem simplistic, it is effective, efficient, and often more insightful than hiring an expensive agency to perform similar tasks. It eliminates the need for elaborate reports and presentations about what is already evident.

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Marketing and development should ideally adopt a more structured and perhaps scientific approach than merely observing passersby. However, the concept of initiating marketing and promotion when you witness the early signs of a trend makes perfect sense.

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Today, especially in Europe and other parts of the world, it is a highly appropriate time to embrace this approach as Chinese global travelers are venturing out once again, reminiscent of their 2019 travel patterns.

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According to the Chinese immigration authority, as of September, 43 million Chinese travelers have embarked on adventures abroad. While this number may be smaller compared to the 160 million travelers in 2019, it is a significant figure considering that Chinese travelers only began their journeys earlier this summer.

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I am currently writing from Milan, Italy, and as I walk around the city center, near iconic landmarks like the Duomo, the Galleria, and La Scala, it's evident that the streets are bustling with Chinese travelers. Conversations with hoteliers, restaurant owners, and retail businesses in Italy confirm that the Chinese tourists have made a strong comeback, a stark contrast to just a few months ago.

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Italy now boasts more inbound flights and seats from China than it did in 2019. Other destinations like France and Spain are also benefiting from a resurgence in air travel from China. Improved connectivity through Gulf carriers transiting in Dubai, Doha, and Abu Dhabi has increased the availability of flights to Mediterranean Europe compared to 2019.

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This boost in availability has led to more competitive pricing, enticing more Chinese travelers to explore Europe, especially during the traditionally slower winter months.

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In conversations with Chinese travel agencies and tour operators, many of whom will attend our upcoming CVS: China Visitors Summit in Milan, they anticipate a robust winter season, particularly during Chinese New Year, extending into the second quarter of 2024 for most of Europe.

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However, it's worth noting that visa processing for Schengen countries remains a challenge. Chinese travelers are required to provide biometric data as part of the visa application process, and securing an appointment at the consulate can be time-consuming. While wait times have improved since the summer, they can still extend to three or four weeks, with additional time needed to receive the passport back.

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Destinations and consulates are increasing staff to expedite visa processing, but this takes time to ramp up, given the absence of Chinese travelers over the past year.

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In conclusion, it's clear that Chinese travelers are not just thinking about traveling; they are actively exploring destinations around the world and arriving in significant numbers. This is an opportune moment to consider the "marketing when they come" approach.

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I encourage you to take a moment to look outside your window, visit your local airport, train station, or iconic attractions in your vicinity, and observe the influx of tourists. What you see may surprise you and prompt you to take action to include China in your agenda for 2024.

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Thank you for taking the time to read this, and we hope you find it insightful. Please feel free to share it with your network, and consider subscribing for more updates.

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Sincerely,

Alexander Glos

At The CVS in Milan, Italy