Shanghai Launch Event: The Future of Chinese Outbound Tourism

China’s largest and most international city, Shanghai launched it’s first Travel Massive event this May bringing together a diverse cross-section of more than 110 travel industry professionals to meet, share, and connect on the topic: “The Future of Chinese Outbound Tourism”.

Shanghai Chapter Co-Founder, Justin Shapiro, kicked off the night at URBN BeerGRDN with a short introduction about Travel Massive, setting out the chapter’s mission: to connect locally and share globally, to shape the future of China travel.

Two leading guest speakers – Gary Bowerman, author of “The New Chinese Traveler: Business Opportunities from the Chinese Travel Revolution”, and founder of Asia-focused communications and research consultancy, Scribes of the Orient; and Ann Bierbower, Senior Marketing Manager at China Skinny, a marketing, research and digital agency – shared in-depth insights on the future of China outbound travel.

“Today’s Chinese Traveller”, Ann Bierbower 

Size and Growth of the Chinese travel market.  There are shifting demographics: two-thirds of China’s international travellers are aged under 35; and geographic shifts: 79% of growth in the China outbound travel market will originate with individuals that come from China’s 2nd and 3rd tier cities (there are more than 150 cities in China with populations of 1 million or more).

It’s a Maturing Market. Service providers such as hoteliers now need to go ‘above and beyond congee and kettles’ to meet the more sophisticated requirements of the experienced ‘independent traveler’.

Digital is Significant. The final stage of advocacy and marketing through WeChat and Weibo is the most often neglected, but most important because of the greater propensity of Chinese to share their experiences on social media during and after their trip.

Hotel Vienna sold ¥10m ($1.8m) in bookings just 3 months on WeChat

“10 Global Trends to Watch in Chinese Outbound Travel”, Gary Bowerman

There is a China Travel Revolution. From Scottish golf clubs to Latvia and Greece topping Chinese visitor volume growth, China is redefining the global travel industry and bringing dynamism to a previously static industry.

By 2025, the travel & tourism sector is estimated to account for 10.7% of global employment, and many governments see Chinese tourism as an important driver of local employment.

Growth of Niche Services. There is a popularity of niche services catered to the Chinese traveller. In South Korea, shopping tours, plastic surgery clinics, and medical tourism are fuelling Chinese outbound tourism. International driving licenses play a big role too – 70,000 Chinese in 3 years are able to obtain international driving license in under a week.

Don’t forget the untapped market. There is a growing trend of Chinese students in America or Europe who travel between states or countries for sightseeing or to visit friends.

“The Chinese Traveller No-longer Exists” – Gary Bowerman

If you’re looking to woo Chinese tourists, Gary makes a prescient point for marketers: the market has become so increasingly complex and fragmented that anyone looking to market for China outbound really needs to carefully consider the nuances and intricacies of the diverse Chinese consumer.

Rupert Davies is the co-founder of Shanghai Travel Massive and Business Development Manager at CRCC Asia. He has travelled to 15 major cities across China and gets geekish for riding on new subway systems. Follow Rupert on Travel Massive or join the Shanghai chapter page for event updates.