Business / Industries

Outbound travelers shrug off declines in yuan value

By Wang Zhuoqiong (China Daily) Updated: 2016-06-20 07:27

Outbound travelers shrug off declines in yuan value

Chinese travelers have fun in Seoul, South Korea. [Photo/China Daily]

Over the next 10 years, the growth in travel spending is broadly expected to outpace the global economy, according to a report of Visa Inc, the cards company.

China tops the chart with a projected growth of 86 percent over a 10-year period, in terms of spending on international travel, which is estimated to rise from $135 billion in 2015 to $225.4 billion in 2025.

According to Ctrip's 2016 Outbound Trips Report, Chinese made more than 120 million outbound trips in 2015, up 12 percent year-on-year.

Chinese aged between 25 and 35 travel overseas the most, accounting for 45 percent of outbound travelers from China. Those aged between 36 and 45 rank next with a 28 percent share.

In terms of Ctrip's city-wise breakdown, tourists from Shanghai, Beijing, Guangzhou, Shenzhen and Hangzhou travel abroad the most, accounting for half of its overseas travelers.

In terms of individual travelers versus group tours, the former lead with a little over 50 percent share, according to Ctrip.

Top overseas destinations are Hong Kong, Seoul, Phuket, Singapore, Taipei and Tokyo.

The evolution of outbound tourism in China has brought in its wake new demands, particularly from young Chinese travelers.

They demand personalized luxury and digital innovations, according to a report by Marriott International and the Hurun Research Institute released on May 30.

The report's key findings reveal a shift in travel habits among the younger generation aged 18 to 36.

Besides personalized luxury experience, they seek value throughout the hospitality ecosystem-from planning a trip to guest services to selecting the right kind of loyalty program.

The report said China's young luxury travelers prefer digital methods to seek services and information. Interactive guest services on smart devices are far more popular than traditional guest services, and travelers also expect this smart technology to record and manage their personal preferences.

Furthermore, they conduct their research on digital platforms. WeChat emerged as their primary source of travel information, obtained from official WeChat accounts and the accounts of friends and professional travel advisers. Third-party apps are also important information channels. Popular platforms include CTrip, Qunar and Tuniu.

According to Research Co Ltd's 2016 China Online Travel Market Research report, online outbound travel market saw 36.8 billion yuan in sales in 2015.

Online sales now account for 20 percent of all trip bookings in China.

Diverse in their motivations, young Chinese are seeking a wider choice of unique and novel travel experiences. They are interested in adventure travel, polar exploration and road trips that take them further afield to a wider range of destinations around the globe, the report said.

Rupert Hoogewerf, Hurun Report's chairman and chief researcher, said, "Despite the (Chinese) economy slowing, the impact on outbound travel of high net worth individuals seems to have steadily grown. The young luxury travelers have developed significant spending power, minted on the back of the recent boom in Chinese entrepreneurship, together with a growing class of second-generation 'rich kids'."

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