Top Challenges for Chinese Travel – and the Latest Booking Trends

30.07.2024 - 07:21 / skift.com / Peden Doma Bhutia

In 2023, China reclaimed its position as the world’s top spender on international tourism, spending $196.5 billion abroad and surpassing the U.S., Germany, UK and France. Closer to home, Chinese tourists are projected to inject a record RMB 6.8 trillion ($940 billion) into the mainland economy this year, marking the first time spending has topped pre-pandemic levels, according to a report by the World Travel and Tourism Council and Oxford Economics.

Despite this robust spending, a new trend has emerged: Chinese travelers have become more focused on seeking value. Cost of travel has become the primary barrier to selling outbound travel this year, according to Dragon Trail’s Chinese Outbound Travel Trade Survey releasing on Tuesday.

From June 24 to July 7, Dragon Trail Research surveyed 295 Chinese travel agents selling outbound travel for mainland Chinese travel agencies.

While the Chinese have returned to their status as top spenders, the economic stagnation post-pandemic continues to hinder the full recovery of China’s outbound travel market. The economic landscape and rising travel costs have made Chinese consumers more cautious about their spending.

Travel agents report significant variation in the cost of trips by destination. Long-haul trips to places like Antarctica can exceed RMB 20,000 ($2,755), while trips to Europe, the Americas, and Oceania typically cost over RMB 10,000 ($1,377) per person. Trips to Africa and the Middle East generally fall within the RMB 5,000-20,000 ($689-2,755) range, whereas Asian destinations are relatively cheaper, mostly between RMB 5,000-10,000 ($689–1,377).

Despite the preference for cost-effective travel, one-third of respondents noted that some travelers are still willing to pay a premium for better experiences.

Visa policy changes have emerged as the second major barrier, with new requirements complicating travel plans. Despite some destinations relaxing visa requirements, the application processes for many popular countries remain cumbersome.

Safety concerns have also become more prominent. Increased competition, communication barriers, customer acquisition challenges, flight capacity issues, and geopolitical factors further complicate the market. The post-pandemic Chinese traveler focuses on personal property, health, hygiene, and environmental safety. Travel agents suggest that overseas destinations and businesses could boost sales by developing customized, personalized, and diverse travel products that address these safety concerns.

As a result of these growing concerns, booking lead times have become even shorter. Travelers now book visas, tours, flights, hotels, and car rentals roughly one month in advance. Interestingly, a quarter of travelers book