May 22, 2024: China Market Update
Alina Xiang
President & CEO, East West Marketing ◆ China Tourism Expert ◆ Trusted Marketing Partner to Travel and Hospitality Clients
Latest News
Bookings for travel services from Chinese tourists during the five-day holiday from May 1 to 5 saw nearly 100 percent growth based on a rapid rebound last year, according to a report from Fliggy, one of the country's leading travel platforms.
Overseas hotel booking volume rose about 100 percent year on year, while the booking value of overseas car rentals surged three times year on year, said the report.
Chinese tourists traveled to nearly 200 countries and regions around the world during the holiday, covering over 3,000 cities, data from online travel agency Trip.com Group showed.
Source: Xinhua
Outbound Market & Industry News
The pandas could draw more U.S. visitors while representing appreciation for the city’s Chinese heritage.
“Demand for air travel between China and the U.S. is very strong,” a San Francisco Zoo spokesperson said. “But the supply is being artificially constrained by this bilateral agreement. If you relax that further, the more flights there are, the better it is for ticket prices, the better it is for customers.”
Source: Skift
Outbound Chinese tourists visiting the Middle East increased by 54 percent between the first quarter of 2023 and the first quarter of 2024, according to a forum in Dubai.
At the Arabian Travel Market held from May 6 to 9 at the Dubai World Trade Center, a forum heard that the United Arab Emirates, Egypt, and Saudi Arabia have emerged as top travel destinations in the Arab region for Chinese visitors.
Source: China Daily
Outbound travel transactions via Alipay saw a 77% increase year-on-year, with total spending up by 10%. The top destinations are Hong Kong SAR, Japan, Macao SAR, Korea, the United States, and Thailand.
Source: Yahoo Finance
The first direct passenger flight between China and Mexico landed in Mexico City after a 16-hour journey, marking the official opening of China's first direct passenger route to Latin America without any stopover.
The flight, which runs from Shenzhen, South China's Guangdong Province, to Mexico City twice per week, covers more than 14,000 kilometers, the longest direct international route in China and also one of the 10 longest direct flights in the world.
Source: Global Times
Inbound and Domestic Market
China has decided to extend visa-free travel for a total of 12 countries until December 31, 2025, permitting unrestricted entry for short stays.
The countries include Austria, Belgium, France, Germany, Hungary, Ireland, Italy, Luxembourg, Malaysia, the Netherlands, Spain, and Switzerland.
In line with the visa-free policy, passport holders of the 12 countries mentioned above can enter China without the need to obtain a visa for stays not exceeding 15 days.
Source: Visa Guide
Beijing received about 16.97 million tourists and achieved a tourism revenue of 19.62 billion yuan (around 2.7 billion U.S. dollars) during the May Day holiday, according to the Municipal Bureau of Culture and Tourism. This marked a year-on-year increase of 9.4 percent and 10.2 percent respectively, both reaching historical highs for the same period.
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Source: Xinhua
East/West Insights?
Q+A with Jakki Jiang, Tongcheng Travel
Tongcheng Travel provides services including transportation ticket booking, accommodation reservation, package tour, DIY tour, cruise and so on, which covers a wide range of travel and vacation scenarios. With more than 200 million MAUs, it is one of the largest OTAs in China.?
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: After Chinese New Year, there was a sudden surge in leisure group travel, with visible growth and increased inquiries. However, due to objective factors, the recovery is not expected to be too optimistic and may only reach one-third of the pre-pandemic level. Group tours might account for 55%, local tour for 30%, FIT for 10%, and private tours for 5%. Since the first batch of 10-year visa holders will have their visas expire in February 2025, there could be another wave of interest in U.S. travel over the next year, provided there are more flights available.
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Q: What is the overall demand of customers for American products at present?
A: Before the pandemic, travel products tended to be quick visits to multiple cities, with key stops in major cities like Los Angeles and San Francisco. After the pandemic, with the influence of social media, smaller and less conventional cities have gained popularity. Especially with the widespread adoption of AI, there has been a noticeable increase in interest among groups planning business trips to visit AI companies.
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Q: What will be the focus of your business and primary product offerings in 2024?
A: ?Our business is divided into three main segments:
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Q: How is the recovery status of your US products at the moment?
A: The product range is somewhat limited, has recovered to about one-third of its pre-pandemic level, with the primary offerings between April and June being tours to Yellowstone, the West Coast, West Coast plus Yellowstone, and regular East + West Coast tours. The most popular tours tend to be longer ones, typically lasting over 19 days.
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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: At this stage, for the summer, we have launched 2 theme park tours on the West Coast, as well as 2 and 3 island tours in Hawaii. In the second half of the year, we're considering West Coast plus Yellowstone tours. Additionally, with the rising interest in AI companies, we are considering a route along I-5 that includes Seattle and San Francisco, focusing on Oregon as it is a tax-free state. When the new NBA season starts, we're planning to include NBA regular-season games in a new series of private tours.
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Q: What are the main challenges you are facing in product development and marketing? In the process of product development and operation, what kind of assistance and support do you most need from the destination?
A: In terms of social media, we'd like to showcase our content on our company's own official accounts or video platforms, but there's a lack of material. For product development, some destinations have limited resources, such as unique performances, food, and cultural experiences.
Q: During product development and operations, what support do you need from the destination?
A: We'd like to know about popular local resources and current trendy spots. Popular locations on Instagram or other social media platforms would be useful for us to promote, as we can simultaneously create content around those spots.
Notable Key Aspects?
The eagerly awaited ITB China 2024 is scheduled to occur from May 27 to 29 at the Shanghai World Expo Exhibition & Convention Center, representing a crucial juncture for the worldwide travel industry. With expectations of more than 600 exhibitors and over 1,000 carefully chosen buyers, plus the concurrent ITB China Conference and various networking events, ITB China 2024 promises to be a noteworthy gathering. The event has reached the scale of its 2019 edition, indicating a strong recovery for the sector.
Los Angeles rolled out the red carpet, welcoming IPW 2024 delegates to experience the charm of the largest inbound travel exhibition in the United States. Beginning on May 3, this grand event, returning to the City of Angels after 12 years, showcased the immense potential of international inbound tourism and the extraordinary allure of Los Angeles on an unprecedented scale. Over 120 Chinese buyers attended the event, almost 80% of the pre-pandemic level.