Chinese outbound travelers are a deep current in the global economy. They are evolving fast as younger generations become the main consumption force. In 2019, the overall number of outbound trips reached 155 million, of which 60% were booked through Online Travel Agencies (OTAs).
Leveraging the big data pool of Trip.com Group, the largest OTA in China with ~60% of market share, combined with AI-powered online research tools, Fabernovel analyzed the changing preferences of this key consumer segment and strategies that brands designed to target and engage with them.
This study is an opportunity to maintain perspectives during troubled times. There are some strong signals identified in the study and weak signals that can shed some light into the evolution of the Chinese outbound travelers when life gets back to normal.
If you would like to have a full version of the report, please send us an email at meet_shanghai@fabernovel.com
2. 2
Foreword
Fabernovel, the global innovation agency and Trip.com Group, the leading online
travel agency in China, are pleased to share this comprehensive and in-depth
study exploring the Chinese outbound travel market.
In 2019, the overall number of outbound trips reached 155 million (+3.3% yoy), 92
million were booked through Online Travel Agencies (OTAs), with over 51 million on
the Trip.com Group platforms. Leveraging the big data pool of Trip.com Group,
combined with AI-powered online research tools, Fabernovel analyzed the changing
preferences of this key consumer segment, as well as strategies that brands designed
to specifically target and engage with them.
China remains the world’s largest spender in international tourism. Chinese outbound
travelers spent USD 127 billion in the first half of 2019, with 25% being retail spend.
While they became a major consumer segment outside of China for the luxury,
cosmetics or fashion industries, this study reveals that their shopping preferences and
travel destinations are also shifting quickly over time (+33% in Oceania in 2019, over
60% drop in Hong Kong...). To plan and organize their trip, they also heavily rely on
Chinese mobile apps and social media platforms that Western brands do not always
fully utilize.
This study reveals insightful information about 2019 travel destinations and shopping
preferences in four key regions: Europe, Americas, Asia and Oceania. It also offers
marketers a comprehensive guide to efficiently leverage the 300 million active
travelers on Ctrip. Finally, 13 best practices were selected to help brands in their
activation strategies.
3. Major travel destination shifts in 2019
- Asia still dominates the market; while Europe and the Americas are
losing market share to Oceania, Africa and Antarctica
- Hong Kong is no longer the No.1 destination in Asia and will continue
to lose its market share to Japan, Thailand and Singapore
3
Executive
Summary
Trends that brands should consider in 2020
- Chinese travelers are heavily influenced by reality shows when it
comes to where “to-go”, and social media when it comes to what
“to-do”
- Young Chinese travelers are traveling for “celebrity-chasing”
- Overseas brand heritage sites, events, and concept stores are
becoming tourist attractions
- Overseas vintage luxury shopping is increasing
Marketing strategies that brands should consider in 2020
- Leverage Ctrip’s big data capabilities to precisely target and influence
Chinese travelers along their consumer journey
- Collaborate with KOLs to produce high-quality content and raise
awareness among Chinese travelers
- Develop strategies with the WeChat system to upgrade brand
services for Chinese travelers
4. Trip.com Group is a
world’s leading
one-stop travel
service provider,
with Trip.com,
Ctrip, Skyscanner,
and Qunar 1.4M+
Domestic &
International
Hotels
>300
Airlines
5,000+
Cities Connected
US$
124 bn
2019 GMV
(+19% YOY)
US$
5.1bn
2019 Net Revenue
(+15% YOY)
400M
Global users
across platforms
>80%
Booking volume
from mobile
4
5. Trip.com
Group
Organization
A leading international
OTA, serving users in 20
languages across 27
markets
20 languages, 25
million international
users
International travelers
Largest OTA in China 300 million Chinese
users
Travelers in mainland
China
Introduction
World’s leading global
travel search site
headquartered in
Edinburgh, UK. Acquired
by Trip.com Group in
December, 2016
20 Languages
MAU:100 Million
International travelers
China’s leading online
travel search engine for
price-sensitive travelers.
Merged with Trip.com
Group in 2015
Language:Chinese
MAU:30 Million
Chinese travelers who
are price-sensitive
Key NumbersTarget Audience
5
6. Restaurant
Travel Real
Estate
Airport
Popular destination
Shopping
Mall
Boutique
Wellness Entertainment
Scenic Spot
Hotel
6
A turning point
for Trip.com
Group strategy
POI, Point of interest
Trip.com Group discovers all the POIs (e.g. restaurants, shopping malls, boutiques, hotels, scenic spots,
etc.) all the way along the travelers’ journey thanks to a big data strategy based on geo-targeting
techniques.
Over 10 Million POI, encompassing every aspect of a tourist’s trip
7. 7
Methodology
Data sources
The findings of this report are developed and presented by Fabernovel and
Trip.com Group. Trip.com Group generates authoritative data from one of its
largest OTA platforms in China - Ctrip - to identify trends in China’s outbound
travel market. The data is then supported and expanded through natural
language analytics by Fabernovel.
Data sources:
● Globally recognised, publicly available databases and professional
publications
● Ctrip internal outbound travel data(1)
for the entire year of 2019; to
identify key trends and rankings(2)
● Ctrip POI (point of interest) data for the entire year of 2019
● Data(3)
crawled from Weibo (one of the most popular microblogging
platforms in China) and Ctrip
Period of data collection:
1st January 2019 - 31st December 2019
The definition of outbound travel:
Chinese outbound travel refers to trips to countries/regions outside of
Mainland China. (Trips to Hong Kong SAR, Macau SAR and Taiwan, China are
classified as outbound travel in this study.)
(1) Datasets are generated from all the booking and review records on Ctrip.
(2) Rankings of hotels and tourist attractions are based on booking volume, while rankings of restaurants, shopping
malls and brands are based on number of page view (PV).
(3) Data is extracted from location-enabled Weibo posts in 2019.
Note: This report is based on 2019 market data and does not take into account the impact of COVID-19 on the travel industry in 2020. Please
refer to Fabernovel special report on COVID-19 and its impact on the travel industry.
8. 8
Methodology
Natural Language Analysis
In order to better understand what Chinese outbound travelers were talking
about when they travel abroad in 2019, and get meaningful insights
regarding POIs ( hotels, restaurants, tourist interests, shopping malls, brand
stores) in each continent, we applied natural language analytics; based on
data crawled from Weibo (one of the most popular microblogging platforms
in China) and Ctrip.
Processes
Step 1: Get the top 10 POIs on Ctrip (hotels, restaurants, tourist attractions,
shopping malls, brand stores)
Step 2: Crawl travelers’ location-based posts on Weibo during 2019 and
undertake natural language processing
Step 3: Clean noise
Step 4: Create a word cloud based on the post content. The size of a word in
the cloud is proportionate with the frequency it is mentioned
Step 5: Generate insights based on keywords and related Weibo posts
10. 10
Chinese travelers’ passion for outbound travel remains strong in 2019
Source: 2019 China outbound travel annual report, Travel Daily
155 Million 127 Billion 35%
The spend of
Chinese outbound travelers in the first half
of 2019
Trip.com Group international business
contributes over 35% of total revenue,
and is estimated to grow to 40 – 50% in
the next 3 – 5 years.
The total number of
Chinese outbound trips in 2019
With YoY growth of 3.3%
*Unit: US Dollars
11. 11
China’s outbound travel market keeps growing with huge potential
Source: National Immigration Administration, Data from Ctrip, 2019
88% of Chinese
Citizens do not hold a passport
(2019).
Number of total outbound trips (Million)
Number of total outbound trips on OTA (Million)
1553.3%
12. Source: Data from Ctrip, 2019
12
Chinese outbound travel destinations around the world
Americas
6.8%
Asia
79%
Europe
8%
Oceania
3.5%
Note: The percentage represents the share of Chinese outbound travelers in each continents in 2019
Africa+Antarctica
2.7%
2 pts VS 2018
VS 2018
2.1pts VS 2018
0.5 pts VS 2018
0.3 pts VS 2018
Travelers to Hong Kong,
Macau, Taiwan account
for ~30% of travelers in
Asia.
13. Top 50 outbound travel destinations
(ranked by share of total number of Chinese outbound travelers in 2019)
13Source: Data from Ctrip, 2019
14. 42% of Chinese outbound travelers come from Tier 1 Cities
Tier 1 Cities: Beijing, Shanghai, Guangzhou, Shenzhen
New Tier 1 Cities: Chengdu, Hangzhou, Chongqing, Wuhan, Xi’An, Suzhou, Tianjin, Nanjing, Changsha, Zhengzhou, Dongguan, Qingdao,
Shenyang, Ningbo, Kunming
The rest cities are defined as Tier 3 and below cities.
14Source: Data from Ctrip, 2019
Top 10 Cities with Most
Outbound Travelers
Top 10 Uprising Cities
for Outbound Travel
15. Over 60% of travelers are post-80s generation
Post-00s went farther than any other generations
Flights and tours account for the biggest part of 00s’ travel expenses, as
they are traveling to farther destinations than other generations. Their
parents often send them abroad for summer camps, immersion tours,
and campus visits. This is a generation that are used to traveling
internationally at a young age and will shape the future outbound travel
market.
Post-90s and Post-00s enjoy group tours with
authentic experiences
Post-00s has the highest consumption share of group tour products* at
Ctrip, immediately followed by post-90s, for the reasons that:
1) Flight + Hotel packages for independent trips are becoming
popular on Ctrip due to pricing.
2) More and more culture and authenticity oriented private group
tours have started to gain traction among the younger
generations.
Post-80s generation leads the overseas road trip and
family tour trend
Usually married with kid(s), post-80s lead the consumption at Ctrip in
hotels, car rental services and tourist attraction tickets.
Many of them are at the peak of their career, so they also lead airport
pick-up and drop-off service consumption on Ctrip.
15Source: Data from Ctrip, 2019Note: The group tour products on Ctrip includes: Flight + Hotel only package products & local experience
tour + Full package trip tour
2.3%
2.8%4.56%
16. Asia - the most
preferred region for
Chinese travelers
16
17. Travelers are less likely to visit vacation islands, and are becoming
more willing to explore cities with abundant tourism assets
Cities are attractive to Chinese travelers no longer just as
shopping hubs,but more as cultural destinations
In 2019, none of the shopping hubs in Asia ranked high in the top rising
destinations. Instead, exotic scenic spots, unique cultural and historical
landscapes, theme parks and leisure attractions in cities such as Ho Chi
Minh City, Osaka, Tokyo, Singapore greatly appeal to Chinese travelers.
Ho Chi Minh City in Vietnam is the #1 rising outbound travel destination,
with rich tourism assets, easy visa processing, and low costs. It is
particularly attractive to young FIT travelers from China.
Japan will be the next top destination for Chinese outbound
travelers
The decline of Hong Kong and Macau, the relaxation of Japanese visa
requirements, and the allowance of multiple entries over 3-5 years will
together make Japan the next top outbound travel destination for
Chinese travelers.
Sunny islands are losing traction due to safety concerns
Safety has always been a concern for Chinese travelers when choosing
travel destinations. The 2018 shipwreck in Phuket, which killed 47
Chinese travelers, has heavily impacted Chinese travelers’ passion for
island and coastal destinations, especially in Thailand.
Source: Data from Ctrip, 2019Note: To rank the top 10 rising / declining cities, we first compared the the YoY change of the same destinations from 2019 to 2018, then ranked
the amount of difference by YoY% (in ascending or descending order). Hong Kong still ranks as the # 1 hottest destination in Asia mainly due
to the large mainland Chinese traveler base in Q1 & Q2 2019.
17
18. Hong Kong is in sharp decline and will continue its downward spiral
in the current political situation
The protests in Hong Kong have dealt a blow to the city’s tourism
industry. The chart shows a huge year-on-year drop in the
number of visitors since July 2019, especially those from
Mainland China.
Top 10 Outbound Travel Destinations
in Asia by Quarter in 2019
Source: Data from Ctrip, 2019/ Discovery Hong Kong.com 18
19. Key
Takeaways
1. Asia remains the largest outbound travel market. Hong Kong is in
sharp decline and, with the current political situation, will continue
its downward trajectory. It will lose its top position to Japan, Thailand
and Singapore.
4. Retail activity in Asian destinations occurs around city centers
and tourist attractions, taking place in conjunction with restaurant
visits.
3. The majority of hotels in Asia with highest occupancy are luxury
hotels in Hong Kong and Macau. Whilst staying in luxury hotels,
Chinese travelers are not using their high-end F&B facilities. They are
avid searchers of “Insta-famous” local food outlets, and are willing to
queue up for the experience.
19
2. Chinese travelers are less likely to visit vacation islands, and are
becoming more willing to explore tourist friendly cities in Asia.
5. City and country-themed products were very popular with
Chinese travelers in 2019, and they have also started to look for
vintage and second hand luxury products whilst shopping.
* For in-depth analysis, please contact fabernovel for a full version
21. Northern European cities on the rise
Although top travel destinations in Europe remain relatively unchanged,
Northern European cities are on the rise. More Chinese people are
traveling to Nordic destinations for natural landscapes and aspirational
lifestyles. The fact that Chinese travelers are traveling more to Northern
Europe also demonstrated their increased consumption power.
In the meantime, the steady growth of tourists to Paris is surprising, due
to the “Yellow Vest” protest.
Finland’s success story
Early adopter of mobile payment for Chinese travelers
Helsinki airport is the first airport in Europe that accepts Alipay; also
available on all the flights operated by Finnair.
Leveraging the power of WeChat to connect with Chinese travelers
and offering a "live like the locals" feeling.
Helsinki cooperated with Tencent and launched a unique one-stop
miniprogram where travelers can discover personalized experiences,
events, restaurants, shopping tips and book transportation tickets,
ranging from buses to ferries - and pay for them all in one place.
Traditional tourist cities still lead, while Northern Europe starts to
pick up
Source: Data from Ctrip, 2019 21Note: To rank the top 10 rising / declining cities, We first compared the the YoY change of the same destinations from 2019 to
2018, then ranked the amount of difference by YoY% (in ascending or descending order).
22. Key
Takeaways
1. Chinese travelers’ love affair with traditional European cities
continued in 2019. There was growing interest in Northern European
countries, where the unique natural landscapes and lifestyles appeal
particularly to the younger Chinese.
2. Unlike Asian destinations, where Chinese travelers stay ‘luxury’
but eat ‘local’, Chinese visitors to Europe prefer to spend on Michelin
dining experiences and save on accommodation costs.
5. In recent years, Chinese travelers have been attracted not only by
products, but also by experiences. Branded heritage sites and
fashion weeks were frequently visited by Chinese tourists.
22
3. Whilst the Eiffel Tower and the London Eye are still ‘must-see’
tourist spots, niche cultural and historic sites also stand out.
4. Europe has always been the place for Chinese travelers to shop
for luxury goods due to its significant price advantages. Shopping
trips to outlets are still included in planned activities when traveling
in Europe.
* For in-depth analysis, please contact fabernovel for a full version
24. Cities in the US and Canada sweep the top 10 destinations in
Americas, while South American cities are on the rise
The US is the only non-Asian country on the world’s top 10
outbound destinations by volume, but growth is slowing
down
With its world class educational institutions, the US receives the largest
volume of International students from China, including K-12 students for
summer camps and campus visits. The visits are life aspiration activities
for the younger generation Chinese.
- Cities like Dallas are important transfer hubs to South America for
Chinese travelers.
- The political tension and the trade war impacted Chinese travelers’
willingness to travel to the US.
The cooling down of outbound tourism in the US has created
opportunities for luxury/private adventures in South America
- Some South American countries simplified the visa process for
Chinese travelers holding US and Canadian visas.
- South America’s world class tourism assets (Cultural patrimony +
mysterious natural landscapes + exotic cuisine) speaks to the current
wealthy Chinese travelers’ desire for in-depth and adventurous
experiences
- As Chinese travelers are unfamiliar with local cultures, and have
language barriers, small private tours are gaining popularity among
thrill-seeking Chinese middle-class travelers.
Source: Data from Ctrip, 2019 24Note: To rank the top 10 rising / declining cities, We first compared the the YoY change of the same destinations from 2019 to
2018, then ranked the amount of difference by YoY% (in ascending or descending order).
25. Key
Takeaways
1. Chinese travelers‘ passion for the US cooled in 2019 due to the
political tension between the US and China. In the meantime, more
and more Chinese travelers started to explore South America
through small and private tours.
2. Chinese travelers prefer luxury chain hotels in the US to enjoy an
indulgent experience that they do not ordinarily have back home.
Food-wise, although most of the time looking for Chinese food, they
are willing to line up for local restaurants, sometimes those with
great views, at least once or twice during their trip.
4. In North America, Chinese travelers prefer buying consumer
electronics, affordable local luxuries and skincare products during
their trip, rather than high-end luxury products.
25
3. What draws the travelers’ interest for the Americas are the
diverse experiences they can enjoy, from natural landscapes to
cultural institutions.
5. Local brand exhibitions and concept stores have become the
new attractions for young Chinese travelers to post “check-in”
photos.
* For in-depth analysis, please contact fabernovel for a full version
26. Deep dive in Oceania
Oceania became the
rising star in 2019
26
27. Niche destinations in Oceania are attracting more Chinese outbound
travelers thanks to reality shows
Trips from China to Oceania increased by 33% in 2019
With higher demand from Chinese travelers for high-quality
and experience-oriented travelling, Australia and New Zealand
start to appear on the top of Chinese travelers’ wishlists. Partially
attributed to the region’s natural landscapes and unique
climate differences from the Northern Hemisphere, the desire
for road trips and getaways from the hustle-and-bustle are also
driving Chinese travelers to Oceanian destinations.
Chinese travelers’ passion for Oceania is also driven by
Chinese Reality Shows in 2019
- Viva La Romance Season 2 in 2019, featuring celebrity couples,
was shot in Perth and Queenstown, Australia and earned more
than 1.35 billion views
- Flower Road 2019, featuring young idols, was shot in New
Zealand
Source: Data from Ctrip, 2019 27Note: To rank the top 10 rising / declining cities, We first compared the the YoY change of the same destinations from 2019 to
2018, then ranked the amount of difference by YoY% (in ascending or descending order).
28. Key
Takeaways
1. Chinese travelers to Oceania saw a significant increase of 33% in
2019, as they looked for experience-driven trips heavily inspired by
popular Chinese reality shows.
2. Chinese travelers favor downtown luxury hotels with comfort and
great night views in Oceania, despite their high prices. Seafood is a
‘must-taste’ for Chinese travelers when they dine out.
4. Chinese travelers are seeking local shopping experiences in
Oceania. They do not only buy local brands, but also visit local
markets/stores; in contrast to duty-free and department stores.
28
3. Wildlife in Oceania is the #1 attraction for Chinese travelers;
immediately followed by city landmarks and theme parks.
* For in-depth analysis, please contact fabernovel for a full version
30. The most random but
critical period of a journey –
Why I want to travel?
Get Ready Hit the RoadWish Explore Return Home
A typical Chinese outbound traveler’s journey
I start to do something to
make the travel happen.
Now I can make plans to
make the journey perfect.
The wonderful time from
stepping out of my home to
stepping back into home.
All the travel days stay in my
mind as lifelong memories.
Search Destination
Search Hotel/Flight
Compare
Decide
Book
Where to go?
How to go, where to stay,
which flight to take?
Check travel blogs, advice
and compare prices of
different options
Finalize the plan and decide
on the combination
Book and pay
Realize inner desire Check Attractions Departure/Arrival Share & Review
Get Inspired
Get influenced
Plan for a journey starts from
a dream, or a sudden
impulse
A photo, a video, an ad,
everything exposed to a
consumer can be the reason
By friend/family/colleagues;
or by celebrities/KOLs
Prepare shopping list
Find deals Shop
Share
Travel
Come up with an itinerary Experiences in the airport
and flight
Recap the travel days and
share it to others as an
expert of the destination
Write down shopping list
and decide shopping
destinations
Experience the exotic
features,food, entertainment,
scenery
Make smart savings and find
coupons and promotions
Purchase in DFS, boutiques,
shopping malls
Share with friends and social
media platforms
30
31. 1
2
3
Leveraging big data to identify and
reach-out to the right consumers
Including KOLs in your Chinese
traveler strategy
Building a WeChat strategy for
hyper-connected Chinese travelers
31
Three strategies brands should consider:
32. Fabernovel
Xiaolei Gu
Wing Han
Jiaowei Tang
Jing Xin
Trip.com Group
Samson Chai
Jiayin Zheng
Haixia Chen
Wenbo Li
Global
Fleur DROUET
meet_paris@fabernovel.com
China
Celine CHEN
meet_shanghai@fabernovel.com
Singapore
Sylvain JOANDEL
meet_singapore@fabernovel.com
United States
Katherine WANG
meet_sf@fabernovel.com
Portugal
Nuno Ribeiro
meet_lisbon@fabernovel.com
Morocco
Boris Naguet
meet_casablanca@fabernovel.com
Jin Yu
Lully Qiu
Alyson Zhou
Research
Inquiries
Published by Fabernovel in March 2020
Special thanks to
WeChat Social Ads Playbook
(Published in Sep, 2019)
WeChat, the shape of the connected China
(Published in Jan, 2019 and Updated in Sep,
2019)
Read also...
WeChat Social Ads Playbook
(Published in Sep, 2019)
The Hidden Consumption Force-
Chinese oversea residents
(Published in Nov, 2019)
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on WeChat...