Nature, family, friends: How mainland tourists have evolved
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This summer, mainland Chinese travelers are venturing out domestically and internationally in significant numbers, with data indicating a 23% YoY rise in domestic flight bookings and a 93% YoY surge in international travel.
Between July 1 and August 31, domestic flight bookings surpassed 18 million, while international bookings approached 7 million. In response, Air China plans to restore its international network to over 90% of its pre-pandemic scale, covering 114 routes across 43 countries and regions.
With China’s international travel market rebounding, the summer of 2024 is poised to be a landmark season for tourism, as tourists visit popular destinations and explore new locales.
Dragon Trail Research recently conducted a survey of 295 Chinese travel agents specializing in outbound travel.
The findings, covering various aspects such as client demographics, preferences, pricing, market changes, challenges, and the strategies used by Chinese travel businesses to collaborate with international destinations and partners, reveal key trends and insights that can guide the strategies of travel destinations and luxury brands aiming to attract Chinese tourists. Below we analyze the report’s key takeaways:
1. Price-sensitivity and value for money
One important trend highlighted by the survey is the increased price sensitivity among Chinese travelers. Over half of the respondents (57%) indicated that their clients prioritize cost-effective travel options.
However, 34% of respondents noted that clients are willing to pay a premium for superior experiences. This bifurcation suggests that luxury brands must balance offering value with maintaining their premium status. Emphasizing unique value propositions – exceptional quality, exclusive experiences, and unmatched service – will be crucial for justifying price points.
2. Demand for personalized and small group travel
The survey indicates a shift towards small, private group tours and customized travel experiences, with 92% of travel agents reporting that group sizes of 20 or under are the most popular. This trend underscores travelers’ desire for exclusivity and bespoke experiences, which are key selling points for luxury brands. Tailoring travel packages to include unique, personalized experiences that cater to small groups or affluent individuals can significantly enhance a brand’s appeal.
3. Safety, security top priorities
Safety and security have become paramount concerns for travelers post-pandemic. The survey shows an increased focus on personal safety, health, hygiene, and environmental safety. Luxury brands must ensure their destinations and experiences adhere to the highest safety standards, providing clear communication about these measures to build trust and reassure potential travelers. Partnering with trusted local operators to offer seamless and secure travel experiences can enhance a brand’s reputation for reliability.
4. Popular themes: nature, family, and friends
Nature-themed travel has surged in popularity, with 54% of respondents favoring destinations that offer natural beauty and outdoor activities. Beach and island travel follows closely, chosen by 43%, while family travel remains a consistent theme. Travel with friends, particularly among younger demographics, holds significant growth potential.
Luxury brands should capitalize on these trends by promoting natural, scenic destinations and curating family-friendly and friend-centric travel packages. Highlighting activities such as exclusive beach access, private island retreats, and eco-friendly luxury resorts aligns well with these preferences, catering to the desire for immersive and enjoyable travel experiences.
5. Regional preferences and the role of digital channels
Southeast Asia and Northeast Asia are the top regions for sales and growth potential, with Europe also a strong contender. Luxury brands should focus marketing efforts on these regions, tailoring strategies to regional preferences, cultural nuances, and travel behaviors. Digital channels dominate the sales landscape, with 63% of travel agents using online travel agencies (OTAs) and 49% utilizing WeChat or WeCom.
Livestreaming has also emerged as a significant sales channel. Investing in robust digital strategies, ensuring a strong presence on OTAs, and creating engaging content on social media can capture the attention of tech-savvy Chinese travelers. Offering frictionless online booking and personalized digital interactions can enhance customer satisfaction and loyalty.
Challenges and opportunities
Despite the positive trends, the survey also identified several challenges. Price remains a significant barrier, as customers are often deterred by higher-than-expected costs. China’s ongoing economic slowdown, rising travel expenses, and shrinking consumption are also concerns. Additionally, visa policies pose hurdles, with changing requirements complicating travel arrangements.
To address these challenges, luxury brands and travel destinations must focus on value, safety, and customization. Enhancing marketing efforts, assisting visa applications, and developing innovative, personalized travel products can help attract and retain Chinese travelers.
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