We’re continuing our discussion of Skift Research’s State of Travel 2024 report with a look at the aviation industry. It has shown enormous progress in its recovery from the pandemic. But ultra-low-cost carriers still face their share of challenges.
27.08.2024 - 19:03 / skift.com / Peden Doma Bhutia / Jane Sun
China’s senior travelers are changing the game in the travel industry. Trip.com Group reported that these users have spent over RMB 1.6 billion ($224.6 million) on its platform so far. To cater to this demographic, the company launched the Old Friends Club last quarter, targeting those aged 50 and above.
China has one of the fastest growing ageing populations in the world. The population of people over 60 years old in the country is projected to reach 28% by 2040.
“In 2023, group tours were popular among seniors,” said Jane Sun, CEO and director of Trip.com Group, at the earnings call on Tuesday. “But in 2024, we’re seeing a move towards customized tours. Seniors now want quality and new experiences.”
To help older travelers, Trip.com introduced a “family cloud” feature. This allows younger, tech-savvy family members to help their elders plan trips and book travel using their phones.
As China’s economy grows, senior travelers are spending more on mid to high-end travel. “This group is no longer about budget travel. They’re looking for mid to high-end experiences and more unique and quality experiences,” said Sun.
Trip.com sees this as a key area for growth. “We see great potential for future business with this demographic,” Sun added. “We’re committed to meeting their changing needs.”
The largest OTA in China isn’t just focusing on seniors. It is also tapping into the younger generation’s love for entertainment and travel. This approach is paying off, with gross merchandise value from these products rising by more than 70% year-over-year.
“To reach more people, we’ve rolled out these products across our global platform in six major Asian markets,” Sun said.
Trip.com Group’s net revenue grew by 14% year-over-year in the second quarter, with hotel reservations by Chinese travelers up by around 20%. The Asia Pacific region was the strongest performer, contributing over 70% to the group’s total revenue.
For the second quarter of 2024, Trip.com Group reported a net revenue of RMB 12.8 billion ($1.8 billion), representing a 14% increase from the same period last year and a 7% increase from the previous quarter.
Continuing on its mobile-first strategy, currently more than 65% of transactions on Trip.com’s international OTA platform are conducted through mobile. In Asia, this figure climbs even higher to around 75%.
Outbound travel continues to drive growth in the second quarter of this year. Trip.com noted that international flight capacity has returned to about 75% of pre-pandemic levels. During the quarter, outbound hotel and air ticket bookings hit 100% of 2019 levels, outpacing the industry average by 20% to 30%, Sun said.
Bookings soared to over 120% of 2019 levels during the May Labor Day Holiday and
We’re continuing our discussion of Skift Research’s State of Travel 2024 report with a look at the aviation industry. It has shown enormous progress in its recovery from the pandemic. But ultra-low-cost carriers still face their share of challenges.
A volcano in Iceland has erupted for the sixth time in three months, spewing red lava through a 4 kilometre fissure on the Reykjanes Peninsula.
When Los Angeles–based designer Clare Vivier began decorating the 19th-century house she'd bought in her husband's hometown of Saint-Calais, in France's Loire Valley, she had a particular aesthetic in mind. “I love color and patterns but wanted something peaceful, so the intention was to create a dialogue between those two things,” she says. She wanted the house to have a blend of contemporary pieces, antiques, and textiles from heritage maisons to create a space that, much like her namesake handbag and fashion label, channeled both California fun and French sophistication. She also knew that she wanted her longtime friend Kate Berry, a designer and creative director, to help her make it happen.
Good morning from Skift. It’s Wednesday, August 28, and here’s what you need to know about the business of travel today.
Government officials in Sri Lanka announced that citizens from 35 countries—including the United States—will be granted visa-free entry into the Asian nation, according to the Times of India.
Amex GBT (American Express Global Business Travel) has become a giant since spinning out from American Express a decade ago. Last year, it helped employees at about 20,000 companies book $6.3 billion in travel transactions. It’s probably the largest travel management company by sales, though many competitors don’t disclose their financials publicly, making comparisons tricky.
Spain’s beach towns are at a bursting point. Protests have filled streets from Barcelona to Malaga this summer, with residents demanding that tourists go home.
Sri Lanka is set to launch a six-month pilot program on October 1, offering free 30-day tourist visas on arrival to citizens from 35 countries, including the U.S., UK, Russia, India and China. The initiative, which temporarily waives the typical $50 visa fee, aligns with the island nation’s peak travel season, lasting from December to mid-April. This move is part of a broader strategy to revitalize tourism, a sector crucial to Sri Lanka’s economy.
China brought in over 17.25 million foreign tourists from January to July this year, a 130% increase compared to 2023, according to latest data from the National Immigration Administration (NIA). The influx is set to generate over CNY 100 billion ($14 billion) in consumer spending, with per capita daily spending nearing CNY 3,459 ($485).
The Skift Research team recently unveiled its State of Travel 2024 report, a 400-page that documents the consumer and business trends in various sectors of the travel industry — including hotels and online travel agencies.
Deciding on a credit card for the best travel perks may have just gotten easier thanks to a new study.
When Los Angeles–based designer Clare Vivier began decorating the 19th-century house she'd bought in her husband's hometown of Saint-Calais, in France's Loire Valley, she had a particular aesthetic in mind. “I love color and patterns but wanted something peaceful, so the intention was to create a dialogue between those two things,” she says. She wanted the house to have a blend of contemporary pieces, antiques, and textiles from heritage maisons to create a space that, much like her namesake handbag and fashion label, channeled both California fun and French sophistication. She also knew that she wanted her longtime friend Kate Berry, a designer and creative director, to help her make it happen.