China’s aging population is rapidly increasing, but this demographic is not slowing down in their travel adventures. Senior travelers in China are spending big on mid- to high-end trips, with companies like Trip.com taking note of this trend. Trip.com has reported that seniors have spent over RMB 1.6 billion on its platform so far and has launched the Old Friends Club targeting those aged 50 and above. With the population of people over 60 years old in China projected to reach 28% by 2040, the travel industry is adapting to cater to the unique needs and preferences of this demographic.
As the travel preferences of senior travelers in China evolve, Trip.com has seen a shift from group tours to customized tours focused on quality and new experiences. The company has introduced a “family cloud” feature to help younger family members assist elders in planning trips and booking travel through their phones. With China’s economy growing, seniors are now more interested in mid- to high-end travel experiences, signaling a lucrative market for the travel industry to tap into. Trip.com acknowledges the potential for future business growth with this demographic and is committed to meeting their changing needs.
In addition to catering to senior travelers, Trip.com is also focusing on the younger generation’s love for entertainment and travel, which has resulted in a more than 70% increase in gross merchandise value from these products year-over-year. The company’s net revenue grew by 14% year-over-year in the second quarter, with significant contributions from hotel reservations by Chinese travelers who have embraced a mobile-first strategy. Outbound travel continues to drive growth, with international flight capacity and bookings reaching 100% of 2019 levels during key holidays such as Labor Day and the Dragon Boat Festival.
Trip.com Group has also seen a surge in inbound travel to China, with a 200% increase in bookings in the first half of 2024 compared to the previous year. Inbound travel now accounts for more than 25% of Trip.com’s international OTA platforms’ revenue, with visa-free entry policies and growing interest in cities like Beijing and Shanghai driving this trend. The company is also focusing on domestic travel within China, particularly to Tier 2 and 3 cities, by partnering with cities and airports to boost local tourism and enhance connectivity.
Embracing AI-powered innovation, Trip.com is using advanced technology to help users “plan less and travel more.” The company sees AI as a game-changer for the travel industry, aiming to provide more personalized and consistent interactions to enhance the overall customer experience. By leveraging AI, Trip.com is set on unlocking the full potential of this technology to drive innovation and create value for its users. With a focus on meeting the evolving needs of both senior and younger travelers, Trip.com is positioning itself for success in China’s dynamic and growing travel market.
