Chinese outbound demand holds firm amid travel headwinds

Despite a volatile global aviation landscape marked by geopolitical headwinds and rising jet fuel prices earlier this year, Chinese outbound travel demand is demonstrating resilience.

According to this summer’s Dragon Trail Research Chinese Outbound Travel Trade Survey, launched on July 29, 2026, which surveyed more than 300 agents working in Chinese outbound travel, 78 per cent of travel agents reported increased outbound demand in 1H2026 compared with last year, while 70 per cent said demand for the current summer season had outpaced 2025 levels.

Chinese outbound growth is being led by younger travellers, as demand shifts towards small-group, private and customised trips

“The results highlight the incredible resilience of the Chinese outbound market,” said Janice Meng, market research analyst at Dragon Trail International.

“Even with reduced flight capacity and diplomatic tensions affecting parts of the region, travel agents report continued growth,” she noted.

The data reveals an evolution in how mainland consumers are structuring their international itineraries.

Traditional large-scale package tours are steadily losing ground to more personalised, niche alternatives. Small-group and private tours have emerged as the fastest-growing product category, cited by 37 per cent of surveyed agents, closely followed by customised and luxury travel at 33 per cent. Conversely, traditional package tours – though still a staple offering – lag in growth momentum, with only 23 per cent of the trade identifying them as a growth driver.

This shift is being spearheaded by a demographic transition.

Chinese travel agents identified young travellers aged 18 to 35 as the fastest-growing market segment for outbound trips (47 per cent). Source markets remain heavily concentrated, with 40 per cent of agents identifying Tier 1 and Tier 2 cities as the primary engines of growth, compared with just six per cent seeing major potential in lower-tier cities.

South-east Asia and East Asia continue to dominate product availability and sales performance.

Thailand has established its comeback as the favourite international destination for Chinese travellers. It topped the best-selling destination list for summer 2026 and was named the single most noteworthy outbound destination of the year, securing 19 per cent of trade responses.

The trade attributes Thailand’s popularity to its natural landscapes, growing market demand, proximity and convenient transport links. Its visa-free policy and value for money have also given it a competitive edge.

Japan (16 per cent) and South Korea (13 per cent) secured the other top-three positions for noteworthy destinations in 2026, although Japan’s market faced air capacity constraints following cancellations in late 2025.

Singapore and the US tied for fourth place, each capturing seven per cent of the trade’s preference.

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