China’s travel sector is recovering strongly following a challenging period during the pandemic. Outbound trips are expected to reach 130 million by the end of this year, closing in on pre-Covid levels. In 2019, Chinese travelers made 155 million trips, contributing around $255 million to global tourism, and the market is rebounding swiftly after being initially stalled by the pandemic. China’s outbound market is on track to become one of the largest again, with Trip.com Group reporting that its platform’s outbound hotel and air ticket bookings have surpassed 2019 numbers. Representatives from India and China spoke at the World Travel and Tourism Council’s Global Summit, highlighting the importance of these markets as they transform the global tourism landscape.
Jane Sun, CEO of Trip.com Group, outlined three emerging trends among Chinese travelers, which she termed the “Three Es.” This includes Entertainment-Driven Travel, Eco-Friendly Travel, and Elderly-Friendly Travel. Chinese travelers are increasingly opting for entertainment experiences, eco-friendly options, and rail journeys over flights for domestic trips. The senior demographic has also emerged as a powerful segment with significant spending power. While opportunities are abundant for the Chinese tourism market, challenges remain including visa access, availability of direct flights, and service quality. Simplifying visa processes, increasing direct flight availability, and meeting service expectations are key areas that destinations must focus on to attract and retain Chinese travelers.
India is also stepping onto the global tourism stage as a growing source market with a strong appetite for travel. Favorable demographics and a growing middle class are driving demand for travel, with India’s post-pandemic travel boom particularly pronounced among young, experience-driven travelers. These travelers focus on living in the moment, spending more on experiences like concerts and international trips. India’s outbound tourism is expected to reach $18 billion in 2024 and grow at an annual rate of 11% to hit $55 billion over the next decade. Indian travelers are among the highest spenders globally, averaging $1,200 per international trip, with preferences for nearby destinations like Dubai, Thailand, Indonesia, and Vietnam.
Sustainability is gaining traction among Indian visitors, with a surge in interest in wellness and eco-tourism. There is a shift toward personalized, immersive experiences focusing on heritage and local culture, such as cultural and culinary tours. The U.S. has become a major draw for Indian visitors, with nearly one million arrivals between January and May 2024, placing India as the second-largest source market for travel to the U.S. after the U.K. Indian tourists are known for being among the highest spenders, with a preference for high-quality experiences. The market potential for India and China is immense, with both countries representing vast populations, rising incomes, and a growing appetite for travel that is transforming the global tourism landscape.
Representatives from China and India highlighted the importance of these markets as they see a surge in travelers due to factors like changing preferences, increasing incomes, and favorable demographics. China’s outbound market is set to become one of the largest again, with a focus on key trends like Entertainment-Driven Travel, Eco-Friendly Travel, and Elderly-Friendly Travel. Challenges such as visa access, availability of direct flights, and meeting service quality expectations remain for the Chinese tourism market. On the other hand, India is experiencing a post-pandemic travel boom driven by young, experience-driven travelers with a focus on unique experiences. Indian travelers are among the highest spenders globally, with a preference for nearby destinations and a growing interest in sustainability and wellness tourism.
As both China and India continue to rise as key players in the global tourism landscape, the potential for growth and transformation is immense. By understanding the changing preferences, spending habits, and challenges facing these markets, destinations and businesses can better cater to the needs of Chinese and Indian travelers. With a strong focus on high-quality experiences, sustainable options, and innovative offerings, the future of tourism in both countries looks promising. Collaborating with governments to simplify visa processes, increase direct flight availability, and provide exceptional service will be crucial for attracting and retaining travelers from these two influential markets. The travel industry must pay close attention to the dynamics of India and China as they continue to shape the future of global tourism.
