Chinese tourists’ return a windfall for Italy’s luxury market

As China emerges from the pandemic, a new wave of mainland tourists is making its way to Italy, bringing with it a distinct appetite for luxury shopping and a higher spending capacity than ever before. These travelers are younger, more digitally savvy, and deeply attracted to European destinations, with Italy ranking high on their list due to its renowned fashion scene. According to Global Blue’s survey 2024, 81% of Chinese shoppers plan to visit Europe in the coming months, with China-Europe air travel capacity expected to reach 85% of pre-pandemic levels during this summer and fall. Notably, the number of Chinese passengers arriving in Italy has already surpassed pre-pandemic levels, recovering 111% compared to June 2019. Analysis conducted by Retex, China’s social intelligence platform that monitors and analyzes online conversations, ranks Italy as the third most popular nation in terms of online buzz. It is among the most visited European countries in Q1 2024, according to Ctrip, China's leading travel booking app, trailing only France and the UK. Luxury appetite The data on tax free shopping for Q2 2024 reveals that the typical Chinese shopper is predominantly young with 68% under the age of 44 (a segment that has grown by seven percentage points since 2019). Millennials, aged 30 to 44, stand out as the highest spenders among Chinese travelers, with an average transaction value of $3,895 (28,344 RMB). Their preferred purchases are luxury items, which have seen a substantial increase in average transaction value from $2,043 (14,866 RMB) in 2019 to $2,897 (21,072 RMB), up 42%. Milan remains the top city for tax-free spending, contributing 44% of sales volume and recovering to 65% of 2019’s level, against the national average of 59%. Rome (20%), Florence (10%), and Venice (7%) follow, with Venice boasting the highest average transaction value at $2,466 (17,946 RMB). Consumption patterns, preferences Chinese travelers are enthusiastic about sharing their experiences on social media, with Xiaohongshu (45%) and Douyin (29%) being the leading platforms for travel inspiration. The buzz about Italy covers a range of topics: travel posts, the influence of pop stars, and popular short dramas. The online conversations are predominantly driven by 26 to 36-year-olds, mainly women (62%), and are generally humorous in tone. Hotels and travel agencies are advised to understand the unique cultural preferences of Chinese travelers, such as their desire to know every detail about their accommodation and their preference for having a kettle in the room. Positive reviews on Chinese-language platforms like Trip.com are crucial, as Chinese tourists rarely use platforms like TripAdvisor. Influential bloggers and online personalities play a significant role in shaping travel decisions, making them valuable partners for travel agencies looking to reach this market. Additionally, they are highly tech savvy and used to mobile payments, and as such, businesses must ensure their stores accept their credit card payments (oftentimes UnionPay). As Chinese tourists return to Europe with robust spending power and a keen interest in luxury shopping, Italy stands to benefit significantly. Italian businesses can enhance the travel experiences they provide by equipping themselves with Chinese menus, Mandarin-speaking personnel, and most importantly, through targeted digital marketing strategies on key Chinese social media platforms, like Xiaohongshu and Douyin.

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Chinese tourists’ return a windfall for Italy’s luxury market