Before the pandemic, the travel retail sector knew Chinese travellers very well. They were a high-spending group, who drove much growth in the industry without, it mist be said, much tailoring of the offer.
But those days are in our past and that past is irrelevant if today’s travel retail sector wants to build the prosperous and vibrant future which we have the opportunity to craft.
This Lunar New Year has provided a celar example of the new habits and trends which are shaping Chinese travel – and which those looking to tap into this demographic must be considering.
The high-spending, long-distance group travellers who dominated in the past are gone. Data from ForwardKeys shows that the modern international traveller leaving China travels alone, or in a couple, and keeps their focus on Asia and desitinations which do not require visas.
The high-spending, long-distance group travellers who dominated in the past are gone. The modern international traveller leaving China travels alone, or in a couple, and keeps their focus on Asia and desitinations which do not require visas
ForwardKeys’ numbers show that solo and couple trips are up 8% and 6% compared to 2019, while group travel is down 52% on long-haul flights. These sort of changes speak to wider shifts in the mindset of international Chinese travellers, with a greater focus on personal and personalised experiences. These are travellers who want to immerse themselves in their location, not just see it.
And those destinations are changing. Malaysia (+41%), Singapore (26%) and the UAE (+14%) are seeing more travel than they did before the pandemic. Japan is also a big winner for new Chinese travellers, with the economic benefits showing travel there from China up 104% year-on-year for the latest Lunar New Year – and 20% higher than in 2019. This is a group more price sensitive and cautious than before. Recent data from Alibaba’s Fliggy travel platform shows a huge rise in the number of travel vouchers bought, as Chinese travellers seek flexibility and good prices for their trips.
This is a group more price sensitive and cautious than before…Chinese travellers seek flexibility and good prices
But for those of us in the wider world there is good news. While Russia has seen a 30% increase in Chinese travel compared to 2024, other key European markets are finally seeing growth too, led by France (+35%), the UK (+32%) and Spain (+32%). However all these figures remain below the levels seen in 2019.
America is also beginning to see an increase with 42% more Chinese travellers to the USA over Lunar New Year than in 2024, as seat capacity finally increases.
But all of these changes are no use for either the luxury or travel retail sector if brands and frontline retail staff are not equipped with the tools to engage these new travellers. At 2.0 & Partners we are proud to have launched our Chinese Excellence Academy, which delivers bespoke training, both online and offline, into how to elevate service and drive engagement and conversion with the modern Chinese shopper. Crafted with retail experts and a native Chinese team, it has shone a light for us on both the unique nature of these shoppers – and the incredible potential which they can hold for our sector if approached properly.
We can never go backward to how it was – but why should we? The potential for the future is much brighter.
To find out more about the Chinese Excellence Academy, click here.