Online marketing and enterprise data solutions provider iClick Interactive has released its 2024 China Outbound Traveler White Paper, highlighting the accelerating recovery of China’s outbound tourism and post-pandemic consumption trends.
You can download the report here. It was created in collaboration with Chinese travel platform Qunar, digital marketing service provider Ocean Engine (owned by Douyin Group), and market research firm.
The white paper shows a steady recovery in China’s outbound tourism since January 8, 2023, when coronavirus-related travel restrictions were lifted.
Kunal said Chinese tourist travel volume has already recovered to levels seen in late 2019. However, it may take some time for international travel-related policies, visa and passport issuance, and flight operations to fully recover.
There has also been a significant increase in demand for travel-related content on digital Chinese platforms such as Douyin.
China’s retail spending is also showing solid growth. In November, the total retail sales of consumer goods reached RMB 4.25 trillion (USD 5.93575 billion), recording a year-on-year growth of +10.1%. [source: National Bureau of Statistics of China].
The surge indicates positive trends in consumer confidence and spending growth both domestically and internationally, the report said.
Chinese travelers after the pandemic
The 2024 China Outbound Traveler White Paper provides brands and marketers with comprehensive insights and fosters a deeper understanding of China’s outbound travel sector and the latest consumption trends.
In the post-pandemic era, Chinese travelers are seeking more meaningful and immersive experiences. Long-distance international tours in 2023 have increased significantly by +42.8% compared to his 2019 levels, demonstrating a desire to explore destinations beyond East and Southeast Asia. [Source: Qunar 2023 Travel Data Report].
2. Lengthening stays and increasing spending: There is a noticeable trend towards longer trips, with trips longer than 6 days jumping +73.2% in 2023 compared to 2019. Chinese tourists allocate more funds per trip, +14.0%.Spending increased by more than RMB 5,000 (US$701.03) per trip, reflecting a desire to enhance the travel experience through higher quality accommodations and activities [Source: Qunar 2023 Travel Data Report].
3. Flexible planning and experiential travel: The shift in planning behavior is clear, with 60% of travelers taking a more spontaneous approach. There is a growing preference for experiential travel that allows people to immerse themselves in local culture, and there is a desire for authentic travel experiences that go beyond superficial tourist spots.
4. Changes in luxury retail spending: Before the 2019 pandemic, approximately 70% of Chinese consumers’ luxury spending occurred outside mainland China. [Source: Bloomberg]. However, the shift towards domestic luxury purchases is significant, with two-thirds of luxury purchases expected to be made within China’s borders by 2027. [Source: Business of Fashion]. Hainan Free Trade Port is attracting attention among Chinese luxury goods shoppers, boosting the growth of the domestic luxury goods market.
Building a virtual connection
Partner with us on WeChat to reach key Chinese audiences in Mandarin. Scan the QR code with WeChat to access The Moodie Davitt Report official account (pictured left, weekly) and China Travel Retail Express (right, daily) platforms. For native opportunities, please contact Zhang Yimei (China) Yimei@MoodieDavittReport.com or Irene Revilla (International) Irene@MoodieDavittReport.com. For editing, please contact Martin Moodie at Martin@MoodieDavittReport.com.
Chinese travelers are increasingly relying on digital platforms at every stage of their journey, including pre-trip preparation, on-travel experiences, and post-trip reflection.
Douyin alone recorded over 450 million travel enthusiasts, showing +23% YoY growth in the fourth quarter of 2023 [Source: Ocean Engine 2023 Travel Data Report]. This has encouraged various tourism companies and influencers to establish a presence on the platform.
Travel-related content is rapidly increasing on Xiaohongshu, influencing the decision-making process of Chinese travelers. Additionally, more businesses in the travel retail industry, including online agencies, hotels, and duty-free operators, are leveraging the WeChat Mini program to reach a wider audience.
Online travel agencies (OTAs) such as Ctrip, Qunar, and Tongcheng serve as important platforms in shaping China’s outbound passenger experience. These serve as a comprehensive space for research and planning, as well as booking flights, accommodation, tours, and activities.
OTAs offer a variety of options to compare prices, amenities, and reviews, making travel easier for a wide range of people, especially those from non-tier 1 cities.
OTA leverages technologies such as artificial intelligence (AI) to continually improve the user experience. These platforms are having a major impact on the travel retail industry, offering exclusive deals and discounts through partnerships with airlines, hotels, and tourism operators.
The proliferation of digital payment platforms has further changed the international travel experience for Chinese travelers. Options such as Alipay and WeChat Pay are accepted around the world, allowing consumers to initiate lodging, transportation, dining, and shopping transactions without the need for cash or currency exchange.
The rise of smart tourism
The integration of virtual reality (VR), augmented reality (AR), and AI technologies is transforming China’s travel industry.
Amusement parks, museums, and tourist attractions are increasingly implementing AR navigation and immersive experiences to increase visitor engagement. Online travel agencies are also deploying AI-based travel assistants to improve user experience and efficiency.
The whitepaper states that AI-powered features for travel planning, such as recommendations, price comparisons and personalized suggestions, are becoming increasingly important to improve the travel experience.
What does this mean for marketers and brands targeting Chinese tourists?
1. Leverage digital channels: Showcase your brand and engage Chinese travelers on their preferred digital platforms, from social media to online travel agencies to short video platforms. Passengers rely heavily on digital platforms to make travel decisions, so it’s important for brands to establish a strong presence across these channels.
2. Prioritize personalization: As Chinese travelers increasingly seek longer, deeper, and more flexible travel experiences, marketers and brands are making personalization more tailored to individual tastes and desires. You need to provide a bespoke experience that resonates at your level.
3. Leverage innovative technology: Leverage the latest developments such as AI and AR to create experiences that captivate and engage travelers, increasing your brand’s appeal and helping you stand out in a crowded market.
4. Stay agile and responsive: Stay informed of changes to international travel policies in China, anticipate changes in traveler behavior, and adjust your marketing strategy accordingly. By being nimble and responding to updates, you can capitalize on opportunities to stay competitive in China’s travel retail market and keep your brand relevant to Chinese consumers. ✈
