4 major trends in China’s tourism industry
On March 25th, the world’s leading tourism technology partner Amadeus released a research report completed by Frost & Sullivan. The report reveals four trends that analyze the future direction of China’s tourism industry.
These four trends include: technology and infrastructure applications increased for tourism; Chinese travelers demand more personalized; Asia Pacific travel barriers between countries diminishing and exit procedures more streamlined; high-end and low-end tourism market quick growth. The report noted that technological innovation is the driving factor in the four major trends.
Commenting on the report, Amadeus Executive Officer of China, Bart Tompkins said: “The report researches the Chinese tourism market current and future development. In the rapidly changing market, the tourism industry must adapt to these changes and propose appropriate technical solutions, which are the tourism practitioners’ key to success in this fierce competition. Amadeus will work together with the Chinese tourism industry, with innovative technology, to find solutions to deal with these changes, and jointly promote Chinese tourism market with healthy and rapid development. “
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Core trend one: leapfrog development
The first trend to observe is this huge development of Chinese tourists as you can see on the graph below:
The leapfrog development of Chinese outbound tourism
Studies show that although most Chinese travelers still rely on travel agents to arrange travel, in the future there will be more and more travelers who use Internet and mobile devices to make a reservation. In the future, there will be 70% of Chinese travelers using the Internet, which is the biggest proportion of all countries in the Asia Pacific region.
The study also found that Chinese people are the most keen on mobile devices, 45 percent of official travelers and 33% of leisure travelers use mobile devices with travel arrangements.
Furthermore, in terms of infrastructure, the report predicted that by 2030, China will have 40,000 km high-speed railway, far more than other countries in the Asia Pacific region. Chinese travelers will need more reliable, more accurate and more powerful tools to help them with travel arrangements.
Core Trends two: Personalized travels
The report reveals the second trend is the personalization: that Chinese travelers demand more personalized travels. Currently, 44% of travelers organize their travel plans independently, looking for new destinations. This figure is expected to grow to 50% in the future.
Another important phenomenon is female Business travelers and elderly travelers growth. In China, more than a third of Business travelers are women, the highest number for the Asia-Pacific region; while in 2030, the number of women Business travelers will grow of 232%.
The explosive growth of China Women Business travelers
In addition, as the elderly population have more disposable income, more and more first-generation wealthy people began to go abroad to visit their families. By 2030, this market should grow seven times, reaching 12.6 million passengers annually.
Travel companies need to adopt new methods and technologies to respond to this rapidly growing market, in order to adapt to the changing market.
Core trends three: the more streamlined exit formalities
The report reveals that the third trend is that the Asia-Pacific region will have more streamlined procedures for international travel, and the tourism barriers will increasingly disappear.
Currently, 7% of Chinese travelers think that visas are the main reason for limiting their number of trips . Australia, Singapore and many other countries have realized the importance of Chinese travelers, and began to plan to eliminate or reduce the visa restrictions for Chinese travelers. Therefore, Chinese travelers will enjoy more freedom to travel in Asia Pacific and other regions in the future. Liberal tourism policy will make diversified travel become trendy, so chinese people will need more complete booking tools.
Core Trend 4: High-end and low-end tourism: “barbell” phenomenon
The report reveals that the last trend was the “barbell” phenomenon, which is the high-end and low-end tourism market growth. On the one hand, as the economy grows, the number of China’s wealthy will achieve six-fold increase and tourism will become their most popular leisure activity. They travel abroad around 2.5 times per year, and travel account for 25% of all their expenditures.
On the other hand, compared with Western countries, Chinese tourists are still in the majority of low-cost travel. The report shows that in the past year, 32% of Business travelers and 50% of leisure travelers took low cost flights for cross-border tourism.
Economical travelers and high-end travelers put a higher demand on the booking tools: economical travelers expect most cost-effective routes and itineraries, and high-end travelers will want to get the best travel experience.
Commenting on the report’s findings on the Chinese market, Frost & Sullivan CEO, Mark Dougan said:
“The importance of Chinese tourism market in the Asia Pacific region is self-evident. Visitors from China to Southeast Asia have maintained an annual growth rate of 12%, showing that Chinese market is growing fast, and is stable. And it is expected that by 2030, China’s outbound tourists will reach 200 million people each year.”
Dougan continued, “Our research reveals the main trends in China’s tourism market, and also predicts the future developing directions of China’s tourism market. People working in the travel industry can refer to the findings in the report to develop strategies for China’s tourism market. ”
You can read also this article about the 7 online tools to attract Chinese tourists here.