Outbound Rebound 2023, Report by FINN Partners and Consumer Search Group
(Part 1)
Affluent Chinese travelers are eager and ready to see the world again.
But as they prepare to explore the world, what are the changes in their preferences, concerns and purchase influences? How can we address these changes? What are the new opportunities?
Before the pandemic, China was the world’s largest source of outbound tourists and by all indications, will continue to be a powerhouse in global tourism. As China reopens its borders, the world is ramping up to welcome back Chinese tourists.
But after almost three years living with restrictions that affected even day-to-day life, how has the Chinese tourist changed? How will these changes impact the products and offerings of travel stakeholders around the world this year and beyond?
It is for this reason that FINN Partners and CSG Research collaborated on a deepdive research that aims to glean insights into the changes in behaviours, needs, preferences, decision-making and expectations of the affluent Chinese travelers. This survey, with a very robust sample size of over 2,000 affluent respondents, was conducted right on the heels of the Chinese government easing travel restrictions in January 2023 to better reflect sentiment and consumer insights.
The report is extensive and comprehensive, covering multiple areas including travel intention, destinations, accommodation, transportation, loyalty program, among others. The intent is to address the Chinese outbound travel market that is anticipating a faster-than-expected revival, and reveal insights that can lead to opportunities and actionable information the global industry will find useful.
Bullish economic sentiment is directly proportional to the eagerness to travel
Most respondents are eager to go on the road, or up in the air, with 88% of respondents saying they miss international leisure travel. This sentiment is dominant in the 26-35 age group.
The strong sentiment to travel is not merely pent-up demand, or so-called “revenge travel”. With 70% of respondents very confident about the economy of China, and 87% saying they are satisfied with life in general, there is basis to believe that the increase in travel frequency, duration and related spending can be sustained.
In contrast, our parallel survey data shows that only 44% of respondents in Hong Kong are confident about economic prospects.
Holiday travel takes priority
Over half of respondents said they are planning a holiday overseas, while one-third said they want to travel abroad to reunite with family.
The desire for leisure travel overseas is particularly evident among respondents from Tier-2 cities and those aged 36 or above.
On the other hand, over 35% of younger travelers, or those aged 21-35 years old, plan to travel to visit / reunite with family abroad.
More leisure trips and business travel set to return to pre-COVID levels
One in two affluent Chinese are making plans for at least five trips in 2023 — a four percentage point growth from 2019. On the average, they are planning to make 5.9 trips in 2023, up from 5.6 trips in 2019. As a point of reference, Hong Kong travelers are planning to make only 4.6 trips in 2023.
Two out of three trips are leisure-focused. On the average, respondents from China are planning 3.8 holiday trips in 2023, an increase from 3.5 trips in 2019. In comparison, their counterparts in Hong Kong plan to make only 3.0 leisure trips in 2023. While the 26-36 age group shows the most significant increase — from 3.4 leisure trips in 2019 to 3.9 in 2023, those aged 21-25 plan to travel as frequent as 4.1 times on the average.
Anywhere outside of China, business travel is facing a slower return. However, Chinese travelers expect to make the same number of international business trips in 2023 – a total of 2.1 trips – as they did in 2019.
Longer stay, slower pace. Experience over things
Not only are the affluent Chinese planning to travel more often, they are also ready to increase their average travel duration per trip to 8.7 days (compared to 8.4 days in 2019). It is 28% longer than the 6.8 days made by their counterparts in Hong Kong for 2023. While 40% of affluent Chinese travelers are planning to stay for eight days or longer, the 21-25 age group is ready to indulge themselves with a longer holiday with an average duration of 9.3 days.
Gone are the rushed, major attractions-packed tours as the affluent Chinese evolve from tourists to travelers. Over 70% of respondents desire slow, recuperative travel over an itinerary filled with activities, while one out of two prefer staying in a location for a longer period of time, experiencing the destination like a local.
Eight out of ten travelers are more willing to pay for experiences over tangible products, particularly respondents from Tier-3 cities (86%). This points to the growing potential of authentic and personalized travel experiences, where one savors the local sights, sounds and culture.
Despite indications of a rebound in outbound tourism, domestic travel continues to grow
Local travel has evolved and diversified during the pandemic with new destinations, new experiences, and new trends, partly as a result of the government’s progressive 14th Five-Year Tourism Development Plan.
Even as restrictions on international travel are lifted, the wealthy Chinese remain interested in domestic leisure travel, with 80% planning to go on an average of 3.8 staycations in the next 12 months, compared to 3.4 in 2022. 79% also plan to go further and visit destinations at least five hours away.
Pre-pandemic, Chinese tourists were the world’s biggest travel spenders. Now, they plan to spend even more
Keen to travel and ready to spend, the wealthy Chinese travelers are budgeting an average of RMB 102,500 (USD 15,299) for travel in 2023, 15% higher than the average actual spend of RMB 88,800 (USD 13,254) in 2019.
Their budget is 22% more than the budget of HKD 95,400 (or USD 12,163) set aside by Hong Kong travelers.
The well-heeled segment (or the top 20% percentile) is prepared to spend much more — an average of RMB 284,000 (USD 42,388) in 2023.
The 26-35 age group has the largest travel budget of RMB 106,500 (USD 15,896), a 23% increase from 2019. Those from Tier-1 cities have a higher propensity to spend — with an average travel budget of RMB 110,100 (USD 16,433) in 2023, marking an 18% increase versus the 2019 level.
No significant change in the travel budget breakdown
Shopping, dining and accommodation remain the top three expenditure items that take up the lion’s share of travel expenses. This spending breakdown is consistent across different city tiers and age groups.
Spending by category: Shopping 21%. Sightseeing/Activities 16%. Wellness10%. Flights / Transportation 15%. Dining 19%. Accommodation 19%.
Destinations and passion points
The desire to revisit evergreen destinations and explore bucket list landmarks is strong, albeit highly influenced by safety and public health concerns. As more mainland Chinese travel to explore and enjoy nature, connecting with locals and going on road trips or wellness experiences become more relevant.
In 2023, affluent Chinese travelers want to revisit places they enjoyed in past trips. They are keen to repeat the good times and pleasant experiences in these destinations…
Nostalgia reinforces revisit intentions. It is fair to say that post-pandemic travelers long to go back to places they have missed most.
In the next 12 months, they will prioritize evergreen destinations — popular locations they have already been to and have had good experiences.
The most popular short-haul and long-haul destinations Chinese travelers plan to visit in the next 12 months.：Short haul — Hong Kong, Macau, Japan, Singapore, Thailand, South Korea . Long haul — United States, New Zealand, Canada, United Kingdom, Australia, France.
However, they are also keen to explore new places.
The most popular bucket list destinations: Brazil, Argentina, Mexico, Egypt.
Destinations with the highest satisfaction levels among affluent Chinese travelers: Maldives 92%, Singapore 90%, Japan 89%, New Zealand 89%, Hong Kong 88%, Canada 86%, France85%, Australia85%, Macau 84%, Thailand 84%, Malaysia 84%, United States 83%, United Kingdom 83%, South Korea 77%, Taiwan 75%.
Safety first: Traveling with ease and peace of mind is a must
Travelers have more to consider when choosing a destination in the post-pandemic era. From a fresh wave of COVID-19 infection, natural disasters and calamities, to a surge in bias-motivated incidents and geopolitical tension, safety is the top concern of most travelers. To a large extent, it defines the attractiveness of a destination.
This prompts destination marketing to go beyond merely triggering wanderlust, but also addressing practical concerns that play a critical role in decision-making.
Compelling Factors: Safety 48%, Key attractions 41%, Connectivity 38%, Entry requirements 37%, Availability of desired travel experiences 34%.
Deal Breakers: Poor safety 56%, Inconvenient local transport system 39%, Harsh entry requirements 32%, Poor medical support 26%, Volatile geopolitics 23%.
Live to eat but bask in nature
Camping and outdoor activities have grown in popularity during the pandemic, reflecting a trend towards nature tourism. This trend is expected to stay and extend to outbound travel, with over 60% of travelers considering natural scenery as their first priority, especially among those aged 36 or above (69%).
Food or culinary experience is still a strong driver of leisure travel. Interestingly, the older age group (36+) considers it more important than those aged 21-25 (62% versus 44%).
On the other hand, Hong Kong travelers prioritize culinary experience (54%) over natural scenery (52%), though the difference is statistically on par.
Pandemic-borne travel interests here to stay
Travelers plan to immerse themselves like locals (58%), take more road trips (56%), take better care of themselves (56%), and attend more events (51%) in their future holidays.
The majority of affluent Chinese travelers in the 26-35 age group are looking for more rejuvenation / wellness experiences in their next trip (65% versus 56% on the average), while Generation Z are keen enthusiasts of entertainment / sport events (58% versus 51%), as well as outdoor sports and adventures (54%) such as camping, hiking, cycling, and skiing.
On the other hand, those in Tier-3 cities are more interested in road trips (62% versus 56%) and entertainment / sport events (56%).
Survey Methodology
We surveyed 2,026 affluent Chinese travelers via a 20-minute online questi-
onnaire between January 10 and 24, 2023.
Respondents were shortlisted through a pre-qualification screening to ensure data quality.
Among the 2,026 travelers, 1,524 came from Tier-1, Tier-2 and Tier-3 cities across mainland China, while 502 affluent travelers in Hong Kong were also surveyed as independent samples for contrast and comparison purposes.
Respondent Profile – Mainland China
All respondents intend to travel in the next 12 months; 5.6 overseas trips taken in 2019. All respondents stayed in luxury hotels for leisure trips in the past 12 months. > RMB 50,000 spent on luxury products in the past 12 months. 44% Male 56% female. 33.8 Average age. 91% Married with children aged under 12. 43% from Tier-1 cities 33% from Tier-2 cities, 24% from Tier-3 cities. 96% own a house and a car. 2.9 average COVID-19 vaccine doses taken. RMB 1.4 million+ average household income.
Readiness and Interests
Keen to travel and ready to spend, affluent Chinese travelers plan to take more trips than they did pre-pandemic. But the frenetic itinerary is replaced with the desire for slow, recuperative travel. And staycations are here to stay.
About Finn Partners
With more than 1,400 professionals across 33 offices, FINN provides clients with global access and capabilities in the Americas, EMEA and Asia. In addition, FINN provides its clients with access to top-tier agencies worldwide through its membership in the global network PROI.
Headquartered in New York, FINN has offices in Atlanta, Bangalore, Beijing, Boston, Chicago, Delhi, Denver, Detroit, Dublin, Fort Lauderdale, Frankfurt, Guam, Hong Kong, Honolulu, Jerusalem, Kuala Lumpur, London, Los Angeles, Manila, Mumbai, Munich, Nashville, Orange County, Paris, Portland, San Diego, San Francisco, Seattle, Shanghai, Singapore, Vancouver and Washington D.C.
Finn Partners’ Global Travel Practice works with boutique hotels, tour operators, luxury hotel brands, in-demand destinations, cruise lines, airlines, and other travel products on a breadth of communications services, including consumer and trade media relations, media intelligence, trendspotting, content development and storytelling, brand partnerships, social media strategy and advertising, influencer marketing, content marketing, digital marketing, experiential and thought leadership. The China travel practice is located in Shanghai, Beijing and Hong Kong. Find us at finnpartners.com.
