China’s wanderlust generation takes flight

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By Steve Price

Published June 25, 2025

Outbound travel market rebounds, fueled by digitally-savvy newcomers prioritizing value-conscious luxury experiences over traditional status symbols.

What happened

China’s outbound travel market reached a pivotal recovery milestone in 2025, with a new demographic emerging: first-time international travelers. This group accounted for 44% of all respondents in China Trading Desk’s Q2 2025 sentiment survey released today, up from 38% in the previous quarter.

This burgeoning segment comprises a critical opportunity for luxury hospitality and retail brands as China’s outbound travel is projected to match 2019’s pre-pandemic levels of 155 million trips this year.

“The real opportunity for brands lies in using travel retail not only to sell but also to build identity, loyalty, and cultural relevance in places where consumers are most receptive. Travelers are often in a discovery mindset,” consumer travel expert and Helios & Partners CEO Humphrey Ho recently told Jing Daily.

The Jing Take

The surge in first-time travelers, characterized as digitally fluent and confidence-seeking, highlights the Chinese market’s evolution beyond simple recovery toward fundamental recalibration.

These newcomers prioritize trust, simplicity, and value-conscious experiences, requiring brands to balance premium positioning with accessibility and transparency.

“Many luxury brands have forgotten a simple truth: a space without a soul cannot create connection. Neuroscience tells us that the human brain craves story and that experiences are critical to anchor it,” wrote Daniel Langer, CEO of Équité, in a Jing Daily column last month.

Nearly half of Chinese travelers (49%) plan to spend at least 25,000 RMB ($3,486) per trip, excluding flights and accommodation, demonstrating a sustained appetite for quality experiences despite economic uncertainty at home. This spending commitment is particularly pronounced among 18-29 year-olds, with 58% budgeting over 50,000 RMB ($6,972). This same cohort is also driving demand for premium accommodations, with 68% preferring four-star hotels and above.

Value-led luxury replaces status consumption

The data reveals a “value-led luxury” approach where travelers seek premium experiences but demand justified indulgence through cultural depth, exclusive amenities, or unique local elements. This mindset challenges traditional luxury marketing, requiring brands to emphasize experiential value over mere status positioning.

Independent travel preferences continue to grow, with 46% of respondents choosing “Free & Easy” options over guided tours. Coupled with persistent last-minute booking patterns — 76% book less than one month in advance — this trend demands flexible inventory management and agile marketing strategies from luxury providers.

Regional destination patterns favor Asia-Pacific luxury markets, with Singapore maintaining its lead at 17%, followed by Japan (15%) and South Korea (13%). Thailand’s rise from seventh to fifth position between quarters indicates shifting preferences that luxury brands must monitor closely.

Social media influence

Digital discovery through Xiaohongshu (also known as RedNote) and Douyin drives 40% of destination choices, with social media influence emphasizing peer-reviewed, visually-driven content over traditional luxury advertising. This change requires authentic user-generated content strategies that showcase genuine experiences rather than polished marketing messages.

The survey of 16,569 respondents, conducted June 1 to 7, 2025, also reveals significant airport retail opportunities. Beauty products dominate duty-free purchases at 23%, followed by fashion, leather goods, watches, and jewelry at 17%. Crucially, 78% of travelers research shopping activities before departure, suggesting that pre-trip marketing can effectively influence luxury purchases.

Looking ahead, China Trading Desk projects outbound travelers will exceed 200 million by 2028. For luxury brands, the opportunity lies not merely in market rebound but in understanding the sector’s fundamental transformation toward experience-rich, digitally-influenced, and value-conscious consumption patterns.