In 2023, China regained its position as the top spender on international tourism, surpassing the U.S., Germany, UK, and France by spending $196.5 billion abroad. On the domestic front, Chinese tourists are anticipated to inject a record RMB 6.8 trillion ($940 billion) into the mainland economy, reaching pre-pandemic levels. Despite this increased spending, Chinese travelers have become more focused on seeking value for money. The cost of travel has become a significant barrier, with travel agents reporting varying trip costs by destination, ranging from expensive long-haul trips to cheaper options in Asian destinations.
The economic stagnation post-pandemic continues to hinder the full recovery of China’s outbound travel market. Rising travel costs and economic concerns have made Chinese consumers more cautious about their spending. Travel agents note that some travelers are willing to pay a premium for better experiences despite the overall preference for cost-effective travel. New visa policies and safety concerns have emerged as additional barriers to booking travel, with shorter booking lead times becoming a trend. Travelers now book visas, tours, flights, hotels, and car rentals roughly one month in advance, with some booking international flights just a week before departure.
Small group tours and customized tours have become popular among Chinese travelers who are seeking in-depth, personalized, and flexible travel experiences. The popularity of group travel has declined, with groups of 20 or fewer being the most popular choice. Younger generations, particularly those born in the 1990s and 2000s, are now driving the market, with travel agents identifying travel with friends, family travel, and couples as promising segments. Southeast Asia has emerged as the top region for outbound travel from China in 2024, with growth potential, followed by Northeast Asia and Europe.
Online travel agencies (OTAs) and platforms like Ctrip and Qunar remain the dominant sales channels for outbound travel, with WeChat also playing a significant role. Live streaming has become a new booking channel, with platforms like Douyin and Xiaohongshu gaining traction. Despite the rise of online channels, offline sales at in-person events or shops continue to hold significance. In conclusion, while Chinese travelers are spending big once again, they are doing so with a keen eye on their wallets, seeking the best value for their money. The post-pandemic Chinese traveler focuses on safety concerns and personal property, health, hygiene, and environmental safety, indicating a shift in travel priorities.
