A NEW study by management consulting firm Oliver Wyman seeks to dispel common misconceptions about Chinese outbound travellers, including views they are more trouble than they are worth, or group travel is being replaced by FIT.
Based on a survey of 1,750 Chinese people who had travelled abroad in the past year, it hopes the findings will help global destinations sharpen their appeal to the changing market.
And the common myths:
Myth 1: “They go abroad only to shop”
While nearly all travellers shopped during their trip, less than 15 pe rcent of Chinese travellers it surveyed cited shopping as the main reason for their trip, in contrast to 63 per cent who specified sightseeing as their top motivation.
In Hong Kong, where slow growth in Chinese travellers and their spending has seen retail sales fall 12.5 per cent in the first quarter of 2016 and a slump in 2015, the city will need to become less dependent on shopping by mainland visitors and encourage spending on other activities, pointed out Hunter Williams, Oliver Wyman partner and author of the report.
Myth 2: “They spend indiscriminately”
Chinese travellers relatively spend large sums while abroad, on average, US$3,000 per person, roughly the equivalent of a month’s household income. It is also true that they spend a lot on shopping – about US$1,200 – which may have helped to fuel the misconception that they spend indiscriminately. However, only around half of the spending is on themselves. More than 32 per cent is to purchase gifts for others, and 19 per cent is for resale back home. “Chinese travellers have sophisticated needs, so retailers need a segmented approach that emphasises unique value – it’s no longer enough to offer a blanket approach,” said the report.
Myth 3: “They are always in groups” or “Independent travellers are quickly replacing groups”
Both the number of tour group travellers and independent travellers are on the rise, showing both individuals and groups will continue to be important segments for some time to come.
Independent travellers are not replacing group travellers, but are complementing them. For example, Hong Kong and Macau rank close to the top for the percentage of independent trips, while Taiwan ranks close to the bottom. At the same time, over the past few years group travellers have actually accounted for a larger share of all travellers, dispelling the misconception that groups are gradually being replaced by individual travel. However, Chinese travellers surveyed considered tour operators to be the single least useful source of information, showing tour operator relationships are no longer enough.
Myth 4: “Chinese travellers are more trouble than they are worth”
As a result of cultural misunderstandings, Chinese tourists can often be misjudged. For example, there is no tipping culture in China and it is often socially acceptable to eat food on public transport. Explaining service charges upfront and the proper usage of facilities can reduce miscommunication. Similarly, rules, and penalties for breaking them (such as cleaning fees for smoking in non-smoking rooms), should be clearly communicated. Open two-way communication is the surest way to avoid misunderstanding.
“Today there is no such thing as the archetypal Chinese traveller as this group is complex and multi-faceted,” said Williams. “If consumer-facing businesses make broad generalisations and buy into the misconceptions, they will miss key opportunities. Businesses need a cohesive Chinese traveller strategy, where the realities of each region and destination must be considered separately.”
