130M Chinese tourists in 2024: Are luxury brands ready?

What happened China’s outbound travel market is on a rapid recovery trajectory, with the number of outbound tourists exceeding 87 million in 2023 and poised to reach 130 million this year, according to ITB China’s latest Travel Trends Report. Surveying more than 1,000 buyer representatives from the ITB China Buyer Circle, the report found that 75% of market players believe their outbound business will reach or exceed 2019’s levels by the end of 2024. This optimism reflects a robust post-pandemic revival, despite ongoing challenges such as visa issuance and flight capacity constraints. These findings indicate that Chinese shoppers will once again be a more regular sight at global boutiques, even as consumers hold back on major purchases at home. New horizons The report highlights that younger generations, particularly the post-1990s and post-2000s cohorts, are driving the recovery of China’s outbound tourism market. Their increased financial independence and adventurous spirit are fueling a continuous surge in outbound travel demand. According to the China Tourism Academy, younger and more educated travelers make up a significant portion of outbound tourists from China. Tourists aged 22 to 41 dominate this group, accounting for nearly 83% of the market. This trend is further supported by data from Trip.com Group, which shows that the combined proportion of post-1990s and post-2000s travelers has surpassed that of the post-1980s generation, establishing them as the leading force in the outbound travel market. Going further, the report delves deeply into Chinese travel preferences during this year’s Lunar New Year festival, which highlighted an uneven recovery. During the holiday period in February, trips to visa-free countries such as Singapore, Thailand, and Malaysia increased by more than 30% compared to 2019, while other nearby destinations, including Hong Kong, Macau, Japan, and South Korea also experienced growth. Notably, medium and long-haul destinations showed substantial gains. Saudi Arabia, the United Arab Emirates, Türkiye, and the Maldives, key locations along the Belt and Road Initiative, reported remarkable growth rates. Saudi Arabia led with an over 800% increase in trips compared to 2019, the UAE saw a 60% rise, and both Türkiye and the Maldives grew by 40%. Further afield, the UK, Argentina, and Norway witnessed significant upticks in Chinese visitors, with growth rates exceeding 60%, 40%, and 200%, respectively. Going into 2025, ITB China expects more outbound travel to Europe, with Chinese travelers heading to popular destinations like France, Spain, and Greece along with less-traveled spots such as Serbia and Montenegro. The Jing Take The ITB China report paints a promising picture of the recovery of outbound travel, albeit highlighting the uneven nature of this resurgence. Destinations with streamlined visa policies and robust infrastructure, such as Thailand, Japan, and Singapore, have emerged as top choices for Chinese tourists, particularly during the 2024 Spring Festival. This trend underscores a preference for nearby and convenient destinations. One of the most critical decisions for travel companies today is determining what experiences to offer, particularly as travelers increasingly seek personalized and immersive journeys. The ITB China Buyer Survey indicates that sightseeing and city walks, along with family holidays, top the list of popular travel themes, each preferred by around half of the respondents. These are followed closely by cultural and study tours, island holidays, gourmet tours, adventure travel, eco-travel, seniors travel, spa and wellness, and winter sports. Unpacking preferences Companies like UTour have capitalized on these trends by launching high-demand, niche products such as snow aurora-themed tours, which have sold out well in advance, and are optimistic about exploring further “tourism +” concepts, blending travel with activities like golf and duty-free shopping. Travel brands must also adapt to the digital shift, leveraging new media platforms like WeChat, Douyin, and Xiaohongshu for trip planning and bookings. Additionally, the integration of artificial intelligence (AI) is transforming both traveler experiences and operational efficiencies. AI tools like ChatGPT assist travelers by predicting preferences and offering tailored recommendations, while chatbots and AI assistants streamline trip-related services, from booking to check-in. For travel companies, AI can be applied to customer service, fraud prevention, and revenue management, optimizing pricing strategies and reducing costs through intelligent automation. Companies like HH Travel recognize the potential of AI to deliver customized services on a large scale, improving both customer satisfaction and operational efficiency, and highlighting the importance of staying ahead in the rapidly evolving travel industry. The Jing Take reports on leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In this recurring column, we analyze everything from market trends and product launches to strategic shifts within the sector.

130M Chinese tourists in 2024: Are luxury brands ready?

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Published August 09, 2024

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130M Chinese tourists in 2024: Are luxury brands ready?