Your new report, Decoding the Luxury Traveller Mindset: Spotlight China, looks at a hot topic: the travel behaviours of wealthy Chinese. There have been so many other studies on Chinese travel intentions, so what makes this latest study stand out from the rest?
Although the topics of revenge travel and resuming international travel has been portrayed publicly, this report has much more granularity and dives right into the push and pull factors.
Quantifying the findings creates genuine, actionable insights for professionals in the luxury travel industry. For instance, we learn that there is a strong appetite for living their bucket list and that there is clear push and pull factors such as health and safety that remains the most influential factor in holiday bookings, but also the retail/food and drink offering (49 per cent) and sustainability credentials (46 per cent). The report also contains a lot of verbatim illustrating the data points.
Finally, we have been running this survey for the second year in a row, so we have been able to highlight some critical evolution in the luxury traveller’s mindset.
Furthermore, the survey has been exclusively submitted to validated affluent and HNWIs to bring relevant content and help luxury industry professionals understand their target more precisely. More than two-thirds of the interviewees (69 per cent) were the equivalent of USD millionaires (US$1m in investable assets), while almost half (49 per cent) had a household income of US$300,000 or more.
What are some of the most fascinating finds from the survey?
We noticed a surprising turn since the previous wave. In 2021, 48 per cent of wealthy Chinese preferred spending on luxury goods rather than luxury experiences versus only 37 per cent in 2023. Also, 73 per cent told us they are willing to spend more and travel in style on more extravagant and unique trips.
Are there earlier industry projections on Chinese travel intentions that have now shown to be mere speculations?
We have heard a lot about privacy/seclusion becoming the guiding choice for the years to come, or that regional tourism will take over international trips. The study has demonstrated that just 39 per cent now prefer this, and international trips are already back on the agenda, with 60 per cent of the interviewees planning to go abroad.
Based on your research, what new business avenues or opportunities are there for travel and tourism organisations and destinations looking to grow their share of HNW Chinese travellers?
Family and multi-generational trips are growing, with almost half of the wealthy Chinese planning for one in the next 12 months. Mental wellness-related travel is a priority for 41 per cent, increasing by five percentage points. It is important to give the right attention to these trends in the imminent future, (and for) travel agents to gain more market share by offering more complex trips to this hard-to-reach population.
Editor’s note: Findings from Decoding the Luxury Travellers Mindset; Spotlight China will be presented during ILTM Asia Pacific 2023’s Opening Forum at the Ritz Carlton Millenia Singapore on June 19
Barr will be succeeded by Elie Maalouf, a member of IHG’s Board and Executive Committee, who has led IHG’s Americas business as regional CEO for the past eight years. Taking up his new position on July 1, Maalouf will be based in the UK.
Results from the Southeast Asia Summer 2023 Domestic Travel Survey, conducted by consumer research firm Milieu Insight, reveals interesting insights on the willingness to travel domestically, concerns for safety, and the number and duration of trips planned for the year.
The survey involved 2,500 working individuals aged 20-65 in Indonesia, Thailand, Vietnam, Philippines, and Malaysia in April 2023.
Findings show a positive outlook for the travel industry in the region, with about eight in 10 respondents (76%) keen to travel in their own country; 85% of respondents across the region plan to embark on at least two domestic trips this year.
Four in 10 respondents in Thailand intend to take four or more trips this year, the highest across the region for domestic travel intent. This suggests that travel companies should consider offering packages and promotions that cater to multiple trips to boost the frequency of travel.
Additionally, the duration of travel per trip remains stable across markets, with the majority preferring an average of three to four days per trip. This information is valuable for travel companies when planning their packages and promotions.
Interestingly, the promotion of the destination is less impactful than a recommendation from family/friends in most countries, except Malaysia and Thailand, which means the tourism offices have done well in boosting local tourism.
The survey also revealed that concerns about Covid-19 safety have waned across most of the countries surveyed, with the Philippines showing the highest level of concern, likely due to rising cases in the country as reported by the Department of Health (4,456) in the last week of April 2023.
Travel spots and sceneries rank highest in key considerations for domestic travel in Indonesia (69%), Thailand (66%) and Vietnam (58%), while the safety of travel (69%) tops the list of considerations for respondents from the Philippines.
Of noteworthy mention is that while costs of the whole vacation do have an impact on travel decisions, especially for domestic travellers in Indonesia (61%), Malaysia (61%) and Thailand (60%), the weather of the destination takes precedence especially for those living in Thailand (62%) and Vietnam (55%). This could likely be due to concerns about extreme weather events that can happen quite frequently in both countries, reflecting the negative impacts of global warming.
Beach holidays are popular across the region, with destinations known for their beautiful beaches ranking first in each country: Boracay in the Philippines, Bali in Indonesia, Danang in Vietnam, Sabah in Malaysia, and Phi Phi Island in Thailand.
Waterfalls across Thailand are hotspots for domestic travellers, with 24% of respondents choosing them as favourite travel destinations.
National carriers (full-service airline) are top choice among respondents in the Philippines, Indonesia and Vietnam: Philippine Airlines (76%), Garuda Indonesia (74%), and Vietnam Airlines (72%).
In Malaysia (84%) and Thailand (83%), low cost carrier AirAsia is the airline of choice, likely due to higher price sensitivity for travellers in both the countries.
When planning holiday activities, South-east Asians prove to be foodies, with about five in 10 planning a food trip experience, while four in 10 respondents from Indonesia, Malaysia and Vietnam are keen to shop locally.
Beach holiday activities are especially popular among Filipinos, with five in 10 respondents choosing swimming and other beach activities like paragliding or parasailing (13%).
Among Thai respondents, 65% is keen to join tours, which is also a popular activity for Malaysians (45%), Indonesians (40%) and Filipinos (43%).
Museum visits are especially popular among respondents in Vietnam and Malaysia, with at least two in 10 inclined to visit a museum while on vacation.
From sightseeing to relaxing holidays, travel planners should consider that South-east Asian travellers are drawn to activities that offer them opportunities to relax and unwind. With the diverse food culture in different states, the opportunity to eat like a local and discover hidden food gems will definitely be a draw.