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Activating Experience: As Luxury Travel Becomes more Experiental for Chinese HNWIs ...

Writer's picture: AliceAlice

By DFNI

Published Jan/Feb 2025


As luxury travel becomes more experiential for Chinese HN WIs, Subramania Bhatt, CEO at China Trading Desk details shares data-driven insights into how travel retail can adapt to this shift.

The travel preferences of Chinese high-net-worth individuals (HNWls) are undergoing a profound transformation. Once dominated by the allure of luxury for its own sake, these travellers are now prioritising experiences that are personal, immersive, and meaningful. As brands and travel retailers adapt to this shift, they must realign their strategies to cater to these emerging preferences while leveraging the latest data-driven insights.


The evolution of luxury travel

HNWis increasingly view travel as a gateway to cultural discovery and personal enrichment. China Trading Desk's Q4 2024 travel sentiment survey reveals that 64% of HNWls prefer trips lasting 5-10 days, emphasising short, yet immersive experiences. Popular destinations like Japan, Singapore, and Europe resonate for their combination of accessibility, cultural depth, and luxury. Moreover, 35% of HNWIs indicated plans to travel within three months and 64% plan to book less than a month in advance, underscoring a preference for both spontaneity and flexibility.


Travel decisions among this group are not solely about indulgence. With 55% of HNWIs holding bachelor's degrees and 31% possessing advanced degrees, intellectual engagement often underpins their travel motivations. They seek culinary experiences, historical explorations, and connections to local cultures—activities that align with their sophisticated tastes.


Activating experiential opportunities in travel retail

Airports are evolving into hubs of immersive luxury, with brands creating interactive experiences to captivate Chinese HNWls. At Singapore Changi Air-port, The House of Suntory Boutique (pictured overleaf) offers travellers a journey into Japanese whisky crafts-manship, featuring interactive displays and exclusive tastings of Yamazaki, Hakushu, and Hibiki. Similarly, the Louis Vuitton Lounge by Yannick Alléno at Doha's Hamad International Airport combines high-end dining with aviation-inspired design. Curated by the Michelin-starred chef, the lounge serves delicacies like Royal Eggs and lobster rolls, blending Louis Vuitton's travel heritage with French culinary artistry.


These activations elevate retail into memorable experiences, meeting the expectations of sophisticated luxury travellers. Meanwhile, flexibility is key to accommodating HNWIs' spontaneous planning habits. Retailers should invest in robust inventory management systems to cater to these high-value, last-minute purchases.


Personalisation remains the gold standard for attracting and retaining HNWls. Nearly 22% of HNWls research shopping before purchasing air tickets

Subramania Bhatt


Additionally, Chinese HNWIs value sustainability and wellness. A significant number are drawn to outdoor destinations and prioritise safety and health-conscious travel. Retailers could incorporate green initiatives, such as carbon offset programs or eco-friendly packaging, into their offerings to appeal to this increasingly aware demographic.


The personalisation pillar

Personalisation remains the gold standard for attracting and retaining HNWIs. Nearly 22% of HNWls research shopping activities before purchasing air tickets and an enormous 76% before travelling, highlighting the need for tailored recommendations throughout their planning journey. From exclusive accommodations to high-end dining and bespoke excursions, these travellers value curated suggestions that align with their sophisticated pref-erences. Leading platforms like Ctrip exemplify this approach, leveraging predictive algorithms to offer personal-ised itineraries based on past behav-iours and preferences.


Accommodations also play a critical role, with 49% of HNWls preferring 4-star hotels and 35% opting for 5-star properties. Brands that offer curated packages-such as private transfers or access to exclusive cultural experienc-es— are better positioned to stand out.


The road ahead

The HNWI segment represents a lucrative yet dynamic market, requiring a nuanced approach. Brands must bridge the physical and digital realms, creating seamless, tailored experiences that reflect the evolving values of these trav-ellers—authenticity, personalisation, and sustainability. Our Q4 2024 findings reveal that HNWls are not only sophisticated but highly connected, relying on platforms like Xiaohongshu and Douyin for planning and inspiration.


The ability to cater to this discerning demographic, from pre-trip research to in-destination experiences, will determine the next leaders in luxury travel. By prioritising innovation, agility, and customer-centric strategies, brands can ensure their place in the travel itineraries of Chinese HNWIs.


This survey was conducted by CTD from 1-5 December 2024. Almost 70% of respondents came from Tier 1 cities in China, and 55% were women.

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