Oct 4, 2024: China Market Report
Alina Xiang
President & CEO, East West Marketing ◆ Tourism Expert ◆ Trusted Marketing Partner to Travel and Hospitality Clients
Latest Key News
Rising Confidence and Interest in Immersive Experiences Drive China's Travel Resurgence
China’s October Golden Week signals a major milestone in outbound travel recovery. With air ticket sales nearing 85% of 2019 levels, a 32% increase from 2023, Chinese tourists are embracing international travel. Popular destinations include Europe and Southeast Asia, with travelers seeking more immersive and cultural experiences over typical sightseeing. Budget-conscious but ready to splurge on key activities, Chinese tourists are increasingly booking trips on short notice using trusted platforms like Ctrip and WeChat.
Source: Skift
Outbound Market & Industry News
Key Industry Players Gather to Explore the Future of China’s Outbound Travel Market
ITB China has kicked off a series of buyer meetups across six major Chinese cities, including Beijing and Shanghai, to discuss and shape the future of outbound travel for 2025. These events bring together industry leaders, travel agencies, and international destination representatives to foster collaboration and explore emerging trends. With the growth of Chinese outbound tourism, these meetups serve as a crucial platform to define strategies for tapping into the market’s potential.
Source: Travel and Tour World
Rising Connectivity, Visa-Free Policies, and Unique Cultural Attractions Draw Chinese Travelers to the Middle East
.. Improved air connectivity, visa-free policies, and cultural appeal have led to a 50% rise in Chinese tourists visiting the region from 2023 to 2024. Chinese travelers now prioritize cultural experiences over shopping, with Dubai becoming a major destination due to competitive flight prices and welcoming policies.
Source: Channel News Asia
Inbound and Domestic Market
China experienced a significant surge in domestic travel during the 2024 Mid-Autumn Festival holiday, with 629.56 million passenger trips recorded nationwide, a 31.1% increase compared to 2023. The holiday’s five-day period saw 579.94 million trips by road, showing the dominance of ground transportation. Rail travel accounted for 42.71 million trips, while air travel saw nearly 8 million passengers. Waterways contributed 3 million trips. The growth signals a continued rebound in domestic tourism and consumer confidence post-pandemic, with the festival serving as a key driver for family reunions and local tourism. This travel boom highlights the importance of holidays in revitalizing China’s tourism industry.
Source: 新华社
Concert Sparks a Tourism Boom with Surging Hotel Prices and High Demand
Grammy-winning rapper Ye, formerly Kanye West, performed in Haikou, generating $53 million in tourism revenue. Held at Wuyuanhe Stadium, the concert attracted over 40,000 attendees and prompted a surge in hotel prices, with some rates tripling. Following this success, an additional concert is planned, further driving demand for accommodations and tourism services. This highlights the significant economic impact of major entertainment events on local tourism.
Source: China Travel News
High-End Hotels Now Account for 60% of Bookings as Travelers Seek Premium and Unique Experiences?
China’s travel boom has fueled the growth of boutique hotels, which now dominate 60% of domestic bookings. Travelers are increasingly opting for luxury and personalized stays, with smaller boutique properties offering exclusivity and unique experiences. Traditional hotel chains face challenges in competing with these more intimate alternatives, as the demand for premium accommodations rises in China’s expanding travel market.
Source: Jing Daily
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East West Marketing Insights
Q+A with QTravel
Qtravel, the outbound travel brand of Bamboo Garden International Travel Co., Ltd., is a leading Chinese travel agency established in 1995. As the first privately listed travel company on China’s A-share market, it focuses on mid-to-high-end outbound tourism services. With a vast network of agents and partners, the company provides diverse travel options, from group tours to customized experiences, consistently innovating to maintain its industry leadership in quality travel services.
Q: With the recent positive developments, what are your expectations for the U.S. outbound travel market over the next year? What level/percentage of visitor recovery do you anticipate?
A: The North American market is expected to grow significantly in 2025, with more flights and relaxed visa policies. We predict a 50% increase in travelers visiting the U.S. compared to this year, supported by expanding flight routes and increased demand for international travel.
Q: How has the overall customer base and market demand changed compared to pre-pandemic times?
A: Compared to pre-pandemic, customers now demand more personalized and diverse experiences. Travelers are no longer satisfied with just visiting popular attractions; they want in-depth cultural experiences and immersive activities that offer more value and uniqueness during their trips.
Q: What will be your company’s main focus and product direction before the next summer season?
A: Before next summer, we will focus on designing products tailored to the seasonal characteristics of the North American market. For example, during the winter, we will offer ski and winter activity tours, while summer products will emphasize national parks and outdoor adventures. We are also enhancing self-guided tours and group travel products in line with new flight routes.
Q: How is the recovery of U.S. products progressing?
A: As of 2024, our U.S. travel products have recovered to around 50% of pre-pandemic levels. This includes regular East and West Coast tours and popular independent travel options. We are confident that with further recovery and increased demand, especially in regions with new direct flights, 2025 will see continued strong growth.
Q: Besides the regular products on the East and West Coasts, are you considering introducing more in-depth or emerging U.S. destinations over the next year? If so, could you list some of the planned new destinations?
A: Yes, over the next year, we will continue to introduce new products focused on emerging destinations and cities with new direct flights. Planned destinations include cities like Austin and Dallas in Texas, as well as Nashville and Louisiana, which offer unique cultural experiences and are becoming increasingly popular among travelers.
Q: What are the main challenges you face in product development and marketing?
A: One of the main challenges post-pandemic is the lack of up-to-date information on the destination cities, including resources such as hotels and attractions. We hope to see more destination training and on-site inspections to better understand the current situation and available resources. Flexibility and adapting to evolving market trends also remain critical for success in product development and marketing.
Q: During the process of product development and operation, what support and assistance do you most need from the destination?
A: We would benefit greatly from more organized introductions to destination cities, including detailed information on local attractions, hotels, and ground services. Additionally, offering familiarization trips to key destinations would help us better assess their tourism potential and ensure that we provide well-curated, high-quality products for our customers.
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Notable Key Aspects
Cashless payment systems, especially mobile platforms like Alipay and WeChat Pay, are becoming essential for Chinese travelers. U.S. destinations that adapt to this trend are more likely to attract and accommodate tourists.
Educational tours, especially those focused on language learning, historical exploration, and cultural exchange, are gaining popularity among young Chinese travelers and families, making this a growing niche.
With international business activities ramping up, corporate travel and incentive programs are becoming a significant part of the outbound travel market. U.S. destinations known for conferences and exhibitions are poised to benefit.
There is a growing segment of affluent Chinese tourists seeking high-end, exclusive experiences. This includes luxury resorts, private tours, and premium services that offer personalized, elite-level experiences.
With more direct flights to secondary cities, travelers are exploring regions beyond the usual tourist hubs, spreading tourism to culturally rich but lesser-known areas.
Chinese tourists are heavily using platforms like WeChat, Little Red Book, and travel forums to make booking decisions, offering U.S. destinations an opportunity to leverage these channels for increased visibility.
Tourism Specialist
4 个月Hi