As the global travel industry rebounds, a marked increase in outbound travel and related expenditure has been witnessed through 2024. The shift in demand and consumption patterns has created new opportunities and challenges for the industry.
The 2023-2024 Cross-Border Travel Consumption Trends Report, jointly conducted by organisations such as the World Tourism Alliance, Mastercard, Ctrip, and Ant Group, provides valuable insights into these changing dynamics.
Global Travel Surge in 2024: Strong Start for the Industry
The global tourism industry saw robust growth at the beginning of 2024. Outbound travel numbers and travel expenditures surged, with both air travel and cruise expenditures surpassing pre-pandemic levels. Cruise transactions, for instance, were 16% higher in 2024 compared to the same period in 2019.
In 2024, four key trends are shaping the global tourism landscape. Economic growth is driving cross-border travel, with increased consumer spending and transportation volumes leading to longer international stays, particularly in regions like the Middle East, Africa, and Europe. Travellers are also showing a growing interest in experience-based activities, with over 12% of in-trip spending now allocated to entertainment and dining, especially in conjunction with major events like Brazil’s Carnival and the Cricket World Cup.
At the same time, younger travellers are prioritizing value for money and relaxation, while sustainability is becoming a central focus in tourism strategies, with a growing emphasis on eco-friendly practices, community support, and economic sustainability.
Inbound and Outbound Travel Market: Recovery and Transformation
China, the world’s largest source of international tourists, has been instrumental in the recovery of the global tourism market. In the first quarter of 2024, the number of inbound and outbound tourists reached 141 million, nearly 83% of the pre-pandemic volume from 2019.
Accelerated Growth in 2024
By 2024, the number of outbound trips and expenditures reached nearly 70% of pre-pandemic levels, with consumer spending exceeding expectations. During the first quarter of 2024, international air passenger transport volumes reached 78% of 2019 levels, and during the May Day holiday, flight volumes surpassed pre-pandemic figures. Moreover, Chinese outbound tourists are now spending more on experiences, with a marked increase in the proportion of spending on entertainment and dining.
Shifts in Traveler Preferences
Travelers are increasingly seeking local, immersive experiences. With the influence of social media and a growing interest in sustainable travel, many Chinese tourists now prefer to immerse themselves in local cultures by visiting hidden gems, dining at local restaurants, and staying at boutique accommodations.
Key Trends in Chinese Outbound Travel Behavior
Shorter Booking Cycles
Post-pandemic uncertainties, such as changes in flight schedules and visa policies, have led to shorter booking windows. Even in 2024, Chinese travellers tend to book flights and accommodations with less lead time compared to pre-pandemic patterns.
Experience-Focused Travel
Chinese travellers are placing a higher value on experiences, particularly those related to local culture and nature. Data from major travel platforms indicate that 75% of travellers are opting for higher-end hotels, preferring a balance of quality and authenticity in their travel experiences.
Freedom of Travel
Self-guided trips are gaining popularity, with free independent travellers (FITs) continuing to dominate the market. Countries such as Indonesia, Cambodia, and the UAE have seen significant growth in independent travellers, who are now exploring off-the-beaten-path destinations. This trend highlights the increasing demand for personalized, flexible travel options.
Diverse Travel Styles
There is a growing diversity in travel styles among Chinese tourists. On one hand, some prefer action-packed adventures, while others opt for relaxation and leisure. For example, Indonesia’s volcano hikes have become a favourite among younger travellers, while beach destinations like Phuket and the Maldives attract those seeking relaxation.
Popular Outbound Destinations for Chinese Tourists
Thailand
Thailand remains one of the top destinations for Chinese tourists, with visitor numbers recovering rapidly. By May 2024, more than 2.5 million Chinese tourists had visited Thailand, making it the top international destination for Chinese travellers. The availability of affordable luxury accommodations and the diverse range of experiences, from city walks in Bangkok to Thai massages, has contributed to its appeal.
Japan and South Korea
Japan and South Korea continue to be popular destinations due to their proximity and rich cultural experiences. Despite the increase in demand, travelers are prioritizing value for money, opting for mid-range accommodations and local dining experiences.
Europe and North America
While European and North American destinations are gradually recovering, countries like Spain, Italy, and the UK have seen visitor numbers return to pre-pandemic levels. Italy, in particular, has capitalized on the recovery of the Chinese market by offering more direct flights and promoting its cultural and luxury tourism sectors.
Recommendations for Future Growth
To accelerate future growth in outbound travel, key strategies include streamlining visa processes, enhancing localized services, and promoting sustainable tourism. Simplified visa procedures, such as visa-free or e-visa programs, have proven effective in increasing visitor numbers, as demonstrated by Singapore’s 30-day visa exemption for Chinese travellers. Improving localized services by offering Chinese-language resources, enhancing transportation access, and integrating mobile payment platforms like Alipay and WeChat Pay will further enhance the travel experience. Additionally, destinations that emphasize eco-friendly accommodations and sustainable activities will attract a growing number of environmentally conscious travellers.
In conclusion, the global rebound of the tourism industry has been greatly influenced by the resurgence of Chinese outbound travel. As the market continues to recover, travellers are seeking more diverse, personalized, and sustainable travel experiences. Understanding these emerging trends will be crucial for destinations looking to capture the attention of Chinese tourists in 2024 and beyond.
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