China is set to play a key role in reshaping the travel market as its outbound numbers recover, and is on track to surpass pre-pandemic levels next year, with some challenges.
Jane Sun, CEO of Trip.com Group, outlined key trends and challenges shaping China’s international travellers during the 24th WTTC Global Summit in Perth.
Sun noted that Chinese travellers will make 130 million trips abroad this year, building on last year’s 87 million trips after the country’s borders reopened.
Trip.com’s own platform reported that outbound hotel and air ticket bookings surpassed 2019 levels as of 2Q2024, signalling a robust market recovery.
Sun identified three major trends reshaping the Chinese travel market: entertainment-driven travel, eco-friendly travel, and elderly-friendly travel.
The first of these, entertainment-driven travel, is witnessing explosive growth. Sun cited a 400 per cent increase in accommodation bookings during Taylor Swift’s concert in Singapore earlier this year.
“Entertainment plus travel products grew by 70 per cent last year. Destinations like Singapore, Hong Kong, and Thailand are capitalising on this trend by integrating entertainment into their tourism offerings,” she noted.
Eco-friendly travel is also becoming a significant trend, with more travellers paying attention to low-carbon options and avoiding overtourism. According to Sun, orders for electric vehicles on Trip.com’s platform have doubled for outbound markets, reflecting this shift in consumer preferences. The trend is benefitting smaller and emerging destinations, as travellers prefer using public transport.
The third trend gaining momentum is elderly-friendly travel, as China’s aging population becomes a critical driver of outbound tourism.
Sun said: “This is the first generation after Deng Xiaoping opened the (economic) door. They made money and now they also have the time to spend it.
“By next year, over 100 million senior travellers will be travelling more often and spending more time abroad, contributing more than one trillion yuan (US$140.47 billion) to the global tourism economy.”
However, she cautioned there are three challenges facing China’s outbound market growth – visa access, flight availability, and service quality.
Visa access is a significant hurdle, as Chinese travellers tend to book trips on short notice, making visa-free travel crucial for many destinations. “Visa-free travel has allowed destinations like Singapore, Malaysia, and Thailand to see 200 per cent growth compared to 2019 levels, while the UAE and Qatar grew up to 300 per cent more,” she noted.
“More than 50 per cent of our customers who make hotel reservations will make that reservation on the day they check-in with the hotel. Also, half of customers who book a (domestic) flight normally make the reservation the day before they fly with Trip.com.
“We even have a product called Trip.com Express Link, where as long as you make a reservation one hour before the plane takes off, we can issue the ticket and boarding pass, and get our customer on the plane within the hour. So that’s the speed that we are looking for,” she explained.
Flight availability is another issue, as current flight capacity has only recovered to 80 per cent of pre-pandemic levels. Direct flights are a “key consideration for Chinese travellers”, particularly for longhaul destinations.
Finally, Sun highlighted the need to meet the high service expectations of Chinese tourists, such as offering mobile payment options and tailored experiences, essential for attracting repeat visits.
