When it comes to travel, the China story never disappoints. Even as the recent fluctuations make business and economists jittery, online travel shows no signs of slowing down. In 2015, the country overtook USA to become the biggest source of international travel spending.
In an infographic released last year, we had identified changing behavioural pattern of Chinese travelers. The increase in disposable income and rise of middle class has influenced the purchasing behaviour and travel decisions of young, educated and technologically skilled Chinese travelers. The rapidly growing middle class has evolved from value obsessed shopping destinations to holiday experiences, with cost, safety, culture, vacation length and visa availability the top five factors influencing destination choice. With the economic confidence and matured preferences, there is a clear shift towards long-haul travel, higher-cost accommodations and upscale shopping.
According to a recent report, Chinese travellers made over 67.5 million trips in 2014. With this figure expected to cross 97 million by 2023, there is little doubt why China is being considered as the biggest catalyst of global travel business growth. According to a Bank of America – Merrill Lynch report, 174 million Chinese tourists are estimated to spend $264 billion by 2019 compared to just 10 million tourists in 2000.
In this post, we try to identify key trends shaping the Chinese online travel boom.
Rise of independent travellers
Young, educated, affluent and tech-savvy – the Chinese Millennials, aged between 18-35, have emerged as one of the influencing segments. There are about 300 million of them, who earn more than their elders and their spending power looks set to increase further as their incomes rise over time. Highly aspirational, seeking brand name destinations for their vacations, Chinese Millennial Travellers (CMT) typically take four trips outside their country per year, twice as many as their other Asian peers.