Category: Cover Story

Outbound Rebound 2023,
Report by FINN Partners and Consumer Search Group (Part 2)

Upscale and luxury accommodations are more preferred and hotel brands have an increasing influence over destination choices.

Accommodations

While convenience, personalized service and culinary offerings in hotel accommodation are key, wealthy Chinese travelers also want a place they can socialize and get a good night’s sleep.

Going luxe: affluent Chinese travelers are opting to splurge on accommodation.

A majority of travelers still prefer hotels and resorts for convenience and familiarity, rather than the non-traditional types of accommodation with strong experiential components. In 2023, one in two travelers plan to stay in upscale and luxury hotels.

On average, special-themed hotels saw a four-percentage point jump in preference, with the growth more evident among the 21-25 age group and travelers from Tier-3 cities.

It is worth noting that the rise of glamping in the domestic market does not translate to an increase in the popularity of camping and campervans in the context of overseas travel. Private islands, boats and temples also score less than 10%.

Brand love: hotel brands are influencing destination choices.

Majority of respondents decide on a destination first before making hotel choices. But this decision process is declining across various age groups. In 2019, 86% of affluent Chinese travelers chose a destination first before selecting the hotel or resort. Today, that number is down to 77%.

Instead, a brand’s portfolio is becoming a deciding factor among savvy travelers, as 16% choose to plan their vacations around locations where their favourite hotel brand has a property, versus 11% in 2019. This is particularly evident in the 21-25 year-old age bracket (26% versus 16% on average). In contrast, it is the older, affluent travelers in Hong Kong (aged 36 years and above) who tend to be loyal to a hotel brand.

Also notable is the increase in travelers whose destination choice is solely based on the location of a specific hotel or resort. Up from 3% in 2019, 8% of travelers now make decisions in this manner. This is more evident among those from Tier-1 and Tier-3 cities (a 5% and 6% increase, respectively, versus 2019).

Personal feedback and word-of mouth sway booking decisions.

Unlike price and budget-sensitive Hong Kong  travelers, where 41% of respondents choose hotels based on budget, Chinese travelers place more emphasis on past experience, star-rating or reviews, and word-of-mouth.

Hence, positive guest experience alone carries great potential for repeat and new business. Interestingly, for affluent Chinese travelers, budget and promotional offers are among the least important factors in choosing a hotel.

Star-rating and personal interest are especially important to those over 36 years old and those from Tier-3 cities.

Convenience, service and food choice matter.

From a list of 49 items or criteria, respondents chose hotel services and amenities that were most important to them. The choices included location, rooms, service, facilities, dining and kids’ club. The factors deemed most important by affluent Chinese travelers emphasize the importance of convenience and accessibility, personalized and efficient service, and culinary experience.

Convenience is the top factor that drives accommodation selection. For city hotels, it is about easy access to attractions, entertainment, and shopping, while resort guests look for proximity to the beach and other activities. Free shuttle service to attractions is a strong influencing factor in hotel choices.

Round-the-clock butler, room service and business center are also important as these give assurance that their needs can be attended to at any given time.

Culinary options are also important for wealthy Chinese travelers as they tend to have meals in the hotel before and after they come back from sightseeing or shopping.

Growing preference in properties where there is a sense of conviviality, impeccable hospitality, and aesthetics.

Consumers are shifting their preference towards community minded and design-centric hotel properties. This is a trend that has been gaining momentum in the boutique hotel segment.

While 85% of affluent Chinese travel with companions, majority of respondents want to stay in hotels and resorts where they can have an opportunity to socialize and meet new people. This friendly and welcoming atmosphere is an aspect that travelers want in the staff.

As Chinese travelers become increasingly discerning, hotel design will become a feast for the senses and a defining factor of luxury.

Conviviality in a property: A hotel/resort where I could socialize and meet new people 58%; A hotel/resort that is known for its welcoming and friendly staff 58%; A hotel/resort that would keep my travel companions happy 48%; A hotel/resort that is known for its excellent service 48%; A hotel/resort with distinctive design and decoration 46%.

Creature comforts and relaxation are vital in a hotel room.

Be it customized pillow choices or luxurious beddings, sleep amenities are most important, especially among the 36+ age group. This is consistent with the prevalence of poor sleep quality among the population.

Across the board, the affluent Chinese travelers prefer rooms with a view — whether it be the natural scenery or a garden. Complimentary mini-bar amenities and a bathroom with spa features are also important attributes.

Most important attributes of hotel rooms/ suites: Luxury sleep amenities 40%; Picturesque view 36%; Complimentary minibar 35%; Spa-inspired bathroom 34%; Private garden / balcony 32%; Computer / video games 30%; Private swimming pool 29%; Special floors (e.g., woman floor, quiet zone) 27%; Dedicated work area (large desk, lighting, fast internet) 27%.

Dining options matter.

Wealthy Chinese travelers tend to eat meals in the hotel before they head out for sightseeing, shopping, or other activities. Most also eat supper in the hotel after a whole day out. Hence, variety of cuisine and even flavours from home are listed as important preferences.

Respondents are split among what is important for them as far as hotel culinary options are concerned. Aside from variety of menu offerings, healthy meal options, 24-hour room service, and a bespoke, fine dining experience are also important to affluent Chinese travelers.

Interestingly, bars with extended opening hours do not matter as much, with only 29% of respondents saying this was an important attribute.

Most important attributes of hotel restaurants: A variety of cuisine options 45%; 24-hour room service 44%; Healthy meal options 44%; Local cuisine restaurant 43%; Fine-dining restaurant 43%; Outdoor dining 40%; Bars / restaurants with extended opening hours 29%.

From Planning to Booking

Practical information and insiders’ insights and tips shape travel decisions. Video content and imagery strongly influence consumer choices. While most book directly on brands’ official websites, travel agents play an increasingly crucial role in planning and booking.

Planning: Decisions are mostly made alone. 83% plan well in advance. 77% decide on the destination first, then hotel. 26% Gen Z more likely to decide on the hotel/ resort first, before the destination.

Single decision maker for the traveling group.

91% of affluent Chinese make leisure travel decisions on their own. But 86% of them plan to travel with at least one companion, mostly with their spouse/ partner (66%).

In cases where there are joint decisions, these are made together with the spouse / partner (89%) or children (53%). 

Information Gathering: Internet 82%; Social media 73%; Advertisement 62%; Word-of-mouth 59%; Travel agents 51%.

Travel decisions based on research from official sources and personal feedback.

Travel decisions are guided by research. Typically, affluent Chinese travelers do research from official sources, features from travel bloggers, writers or influencers on recommended itineraries, tips and insights. Images from go-to, credible sources also play a role in drumming-up interest in a destination or attraction.

As “reviews” play an important role in Chinese consumerism, personal travel blogs are indeed an important source of information. Meanwhile, video-based platform Douyin has surpassed WeChat and Red as the most popular information channels, once again highlighting the growing popularity of using videos to promote travel products.

Travel information of interest: Practical facts about the travel destinations such as seasons, climate, culture, etc. 51%; Recommended itineraries, places to visit etc. 46%; Personal travel diaries with personal insights, suggestions, and in-the-know travel tips etc. 43%; Travel regulations on official channels 38%; Destination entry requirements detailed by travel bloggers 33%; Travel brochures with beautiful images and descriptions 31%; Destination fun facts 26%.

Preferred information channels: Douyin 66%; WeChat 63%; Weibo 55%; Little Red Book 55%; Bilibili 46%.

Booking: 76% book within 3 weeks; 47% book within 1-2 weeks; 21% Gen Z book less than 1 week.

The top 3 online booking platforms for international travel: Trip.com 89%; tuiniu.com 57%; booking.com 32%. 65% book directly on brands’ website.

Offline channels are still crucial, albeit less than online channels. Travel agents (online & offline) are also key booking channels.

While, direct bookings are preferred, travel agents remain important in finalizing travel plans.

In contrast to domestic travel where online travel agents are considered the main one-stop-shop platforms for planning and booking, travelers tend to book directly through the websites of travel brands for international trips.

But both online and offline travel agents influence planning (73%) and booking (43%) – emphasizing the need for reliable agents who can help navigate nuances such as connectivity to get to destinations, travel requirements and other factors.

Noteworthily, more than 70% of travelers still book offline, indicating that offline channels are still crucial even in the digital-first market.

Travel Essentials

With more plans to fly first class, COVID safety measures and service matter more than price. Travelers prefer loyalty programs that grant them personalized service and priority access.

First class = safer seats.

More affluent Chinese said they prefer flying first class, with a marked increase versus 2019. This increase is particularly evident among the 36+ age segment and those in Tier-3 cities.

Only 22% of affluent Chinese said they would fly economy class.

As a point of comparison, less Hong Kongers said they would fly first class, reflective of the cautious sentiment towards economic prospects and relative maturity as international travelers. 44% of Hong Kongers said they would fly economy.

Affluent Chinese travelers are not price-sensitive.

Factors impacting choice of airlines: COVID safety measures 39%; Service 37%; Inflight dining 35%; Flight schedule 32%; Cancellation terms 28%; Inflight entertainment 27%; Pricing 24%; Carbon emission 8%; Loyalty program 5%. 

Travel by train remains steady. As road trips have become popular, demand for car rental is expected to rise.

Meanwhile, cruise ships remain a steady preference in leisure travel: Train 15% (-1%), Cruise Ships 12% (+1%), Rental Car 14% (+4%).

Loyalty memberships are a badge of honor.

The motivation behind loyalty memberships is the exclusive privileges – personalized service, priority access and VIP amenities. Travelers are less keen on rewards and special discounts.

Loyalty program ownership: Hotels 64%; Airlines 57%; Vacation clubs 48%; Food and beverage 42%; Travel agents 36%.

Motivation to sign up: Personalized services 60%; Priority access to newly launched facilities and services 58%; Privileges (e.g., priority service, free upgrade) 55%; Rewards47%; Promotion/ special offers 42%; Partner network 10%.

Most attractive membership benefits and rewards: Benefits can be used in city of residence (e.g. gyms and lounges) 33%; Hotel accommodation 32%; Travel services or experience (e.g. spa, car rental, event tickets) 32%; Limousine service 30%; Birthday and anniversary gifts 30%; Souvenirs or products 28%; Dining experience 27%; Shopping vouchers 25%; Upgrade 24%.

Ready to embark on a journey yet can’t decide between tropical diving,
mountain hiking and city breaks? Come to Malaysia and realize all your travelling dreams!

With Indian temples backed by ancient rainforests, post-modern skyscrapers juxtaposed with mosque minarets, and lush mountains and beaches, Malaysia is a land of multicultural splendor. Throughout the ages, Malaysia’s stunning landscapes, deep-rooted culture and customs, unique traditional crafts and authentic cuisine have endured.

Malaysia is located in Southeast Asia and consists of Malaya in the southern part of the Malay Peninsula and Sarawak and Sabah in the northern part of Kalimantan Island. The whole territory is divided into two parts, East Malaysia and West Malaysia, by the South China Sea. Temperature variations are small throughout the year, with the rainy season from October to March and the dry season from April to September.

Leisure experiences: beaches, valleys, cities

From city trips to beach wandering, from food hunting to wellness experiences, Malaysia is a great place for a leisure trip.

Sipping tea at Cameron Highlands. Once upon a time, British colonisers who couldn’t stand the tropical heat ran to higher ground, where they built mountain villages and started a tea-growing industry, with the Cameron Highlands in Pahang being one of the most famous. Nowadays, locals and tourists come here to escape the summer heat.

Ranging from 1,300 to 1,829 metres above sea level, the Cameron Highlands are dotted with lush tea plantations and the temperature rarely exceeds 30°C. Hiking, strawberry picking, and of course, the classic experience of sipping tea from a bronzed cup as you look out over the endless tea plantations are all must-try.

Boh Sungei Palas tea plantation is ideally located in the hills north of Brinchang, with views of the tea fields, and offers not only tea tasting but also a tea interpretation centre and a café. Complimentary tours guide guests through the tea-making process. A boutique offers a wide range of teas for purchase. The café offers fresh tea and innovative desserts such as egg yolk pineapple cheesecake and green tea tiramisu. Finally, take a stroll along the paths of the plantation.

The Cameron Valley Tea House, located on the road between Ringlet and Tanah Rata, is also a great option overlooking the tea fields. There are no guided tours, but it’s still possible to wander the plantations on your own. The Boh Tea Garden is a relatively remote site, a 40-minute drive from Tanah Rata, with a velvety green landscape. Here you can sip tea on the outdoor terrace, buy boxes of tea, and visit the plantation and tea factory.

Taking a bling-bling tricycle tour of Melaka City. Melaka City, the historic port city known as the peacock city of Malaysia, is indeed gorgeous. Crimson coloured buildings left over from the colonial era line the streets, blending elements of various cultures such as Portuguese, Dutch and British. Old shops and mansions have been transformed into galleries and hotels. The most unique feature is the endless stream of bling-bling tricycles, decorated with Hello Kitty neon lights, Frozen characters and lighting fixtures. Ride the cute trike past the Sultanate Palace and around Dutch Square. A replica of the palace of Sultan Mansur Shah, who ruled Melaka in the 15th century, Sultanate Palace, houses an open-air cultural museum and gardens. Dutch Square is lined with trees and has a beautiful fountain built in 1904 in honour of Queen Victoria. As night falls, the neon lights on the tricycles begin to flicker, making them a beautiful sight on the road. It’s hard to resist the urge to take a selfie, isn’t it?

Going to the beaches. Malaysia is also one of the best honeymoon destinations in Asia due to its many beautiful islands. Pulau Perhentian on the north-east coast of West Malaysia is one of the most famous, consisting of Pulau Perhentian Besar and Pulau Perhentian Kecil, with primeval forests, swaying palms, clear waters and golden sandy beaches. The wind is blowing and the crystal-clear waters of the sea contrast with the golden sands of the beaches. As well as sunbathing on beach loungers, the underwater world is quite wonderful. Snorkel among green turtles, barracudas and colourful coral reefs, or dive to the sunken cargo ship MV Union Star, where stingrays and trevally roam around. Numerous resorts have been built on the island with good tourist facilities, but it still boasts crystal clear waters. There are also jungle hiking trails through langur habitats and a string of glistening crescent-shaped white beaches.

Situated on the east coast of Sabah, East Malaysia, Semporna is a pristine and stunning location consisting of the small town of Semporna and numerous outlying islands. The island of Sipadan is about an hour’s boat ride south-east from the town’s jetty. The island is uninhabited, and its jagged underwater terrain and marine life wonders put it high on the list of the world’s top diving destinations. Beneath the sea, five metres of shallows are followed by depths that drop vertically 600 to 700 metres. From coral, anemones and schools of large fish of all shapes and sizes, to turtles and sharks, there is also the chance to encounter the stunning ‘Sea Storm’ – a storm of thousands of sea fish densely packed together in a hurricane’s eye.

Bon appetite in George Town, Penang. The streets of George Town Penang are bustling with buildings of local features as well as British elements, and boutiques selling arts and crafts. But the best thing about this place is probably the food. The city is dotted with major food markets, restaurants and cafes. Recommendations: chicken curry at the venerable Hameediyah, rice noodles at the Lorong Baru stall, grilled satay skewers and spicy-sweet Rojak salad at the Anjung Gurney night market, and stir-fried river noodles with prawns at Kafe Heng Huat. Desserts are naturally a must-see, and we recommend the wide selection at China House.

Take a cooking class in Kuala Lumpur. With Penang’s laksa, Ipoh’s chicken and bean sprouts, and a wide range of cendol with coconut milk, Malaysia has always been a culinary destination. And the fading colonial influences of the Dutch, British and Portuguese have also left their mark on Malay recipes. To bring home some Malay flavours, take a cooking class – Kuala Lumpur offers a wide selection of cooking classes, where skilled chefs will guide you step-by-step through the preparation of fried prawns, nasi lemak (coconut rice), beef stew and more.

Outdoor activities and adventure

majestic mountain ranges, magnificent national parks, and abundant natural resources all provide opportunities for outdoor adventure in Malaysia.

Climb Gunung Kinabalu. Gunung Kinabalu is the highest mountain in Borneo, the highest point between the Himalayas and New Guinea, and Malaysia’s first UNESCO World Heritage Site. From the bottom, the cloud-covered peak (4,095 metres) is far more awe-inspiring than any other in the Crocker Range, and the view from the top is breathtaking.

The journey is approximately 8.7 kilometres each way, with new natural wonders at every turn. Rugged steps and rocky paths lead you step by step to higher forest lines, past moon rock faces, alpine meadows and ferns, rhododendrons, bamboos and, at Panalaban (3,272 metres above sea level), then you can have an overnight stay at the lodge and an early morning ascent to the granite summit to greet the sunrise the next morning.

Tip: The dry season from March to August is suitable for climbing. A limited number of permits are issued each day and climbing must be done with a guide.

Trekking at Taman Negara. Despite Malaysia’s natural splendour, it is also facing serious environmental challenges, making the unspoilt natural environment of the Taman Negara National Park all the more precious.

Taman Negara National Park is a pristine 4,343 square kilometre reserve spanning the states of Pahang, Kelantan and Terengganu. It is home to a 130-million-year-old rainforest, one of the oldest in the world. Follow the trails and be surrounded by the sounds of the various animals that live in the jungle; caddisflies whistling through the forest, macaques chattering in the branches and hornbills rattling high above. If you’re lucky, you may encounter a gaur, tiger, elephant or the extremely rare Malay peacock pheasant. Stroll the 45-metre-high canopy walkway, take a firefly boat ride or join a night hike to see the animals at night.

Adventure and Wellness at Mulu National Park. Borneo is one of the world’s oldest islands, dotted with rainforests and wildlife, and home to Mulu National Park. In the park, limestone pinnacles add to the landscape of 60-million-year-old rainforests, winding streams and deep caves.

A walk through the rainforest will reveal some bizarre caves, and some of these caves play host to thrilling spectacles on a daily basis. More than 2 kilometres long and 174 metres high, Deer Cave is the world’s largest cave passage open to the public. It is home to two to three million bats, of which there are 12 species. They gather in circles at the top of the cave and fly out of the cave together from 4pm to 6pm every day, forming a spiralling cloud. This breathtaking sight can be witnessed from the observation deck outside the cave. Winds Cave also attracts many visitors due to its beautiful stalactites, with a wavy roof that allows the breeze to pass through. Not far from Winds is Clearwater, the longest cave in Southeast Asia, nurtured by 108 kilometres of river.

The Ayus Wellness Experience (AWE), created by Global Wellness Institute Mental Wellness Initiative, in partnership with the Mulu Marriott Resort and Spa, takes the rainforest adventure to the next level with a holistic healing journey for the body, mind and soul. Take a yoga or meditation session deep in the forest with a professional guide or jump into a mineral pool. AWE has invited a local healing master to lead guests on a journey to find and identify the magical plants in the jungle. Upon returning to the resort, enjoy a healthy meal prepared from these precious herbal ingredients. The sleep programme is also one of AWE’s signature offering, blending Eastern healing wisdom with modern science to enhance guests’ quality of sleep. Each evening, AWE shares with guests the science behind each experience in a lecture, so that people can continue their healthy lifestyles when they return home.

Getting to Mulu National Park is not easy. One needs to fly from Kuala Lumpur to the small town of Miri in Sarawak and then take a flight to Mulu. There are two flights a day from Miri to Mulu and the journey takes about 30 minutes.

Wellness retreats in Malaysia

With its diverse ethnic and cultural history and rich natural resources, Malaysia is home to some of the world’s oldest healing approaches, with specialised Chinese, Indian and Malay traditions, allowing travellers to escape the hustle and bustle of city life and enjoy a relaxing and peaceful journey of wellness.

Banjaran Hot Spring Resort. Ipoh’s first luxury natural spa resort, nestled in a 22.7-acre valley in northern Perak, surrounded by limestone mountains and lush rainforests, the resort offers a tailor-made holistic wellness experience. 44 Garden Villas, Water Villas and Lakeside Villas provide comfortable accommodation, each with private access to the resort’s natural hot spring. Experience ancient Malay therapies and a range of treatments such as acupuncture, gua sha, Ayurvedic massages and Himalayan salt scrubs. The resort is only a 15-minute drive from Ipoh City and a 2-hour drive from Kuala Lumpur.

The Datai Langkawi. Immersed in the heavenly sounds and light fragrances of the rainforest, each room and villa in the resort has an outdoor balcony with views of nature, while the spa is nestled beside a meandering stream, and the five spa villas offer a range of treatments inspired by the ancient Malay tradition and philosophy of Ramuam, which incorporates therapeutic botanicals and herbs found in the rainforest. In addition, VOYA’s innovative skincare products provide a holistic experience t. The jungle surrounding the resort is home to an abundance of wildlife, and during your stay, you are likely to spot black langurs, geckos and colobus monkeys.

Spa Village at Tanjong Jara Resort. A spa brand managed by YTL Hotels and is present at luxury resorts around the world, Spa Village is passionate about introducing personalised and locally inspired experiences that combine the natural ingredients of the destination with ancient healing practices. Located on the east coast of Peninsular Malaysia, the fairytale-like Tanjong Jara Resort faces a crescent of golden sandy beaches with sweeping views of the turquoise waters, and verdant palm trees rustling in the sea breeze. The resort is modelled on a 17th-century Malaysian palace, with gardens and pools interspersed throughout. Rooted in the concept of “Sucimurni”, which means spiritual purity, health and abundance, the Spa Village combines the unique natural ingredients of a variety of local herbs and plants with the skills of resident Malay therapists to relax and rejuvenate the body and mind.

Spa Village at Pangkor Laut Resort. The resort is located on the private island of Pangkor, surrounded by white sand and turquoise sea, and set amidst ancient rainforests. The beautifully designed villas are set high in the hills, nestled in lush gardens or above the tropical waters. The resort’s Spa Village offers a variety of treatments from China, Japan, India, Thailand, Bali and Malaysia. Facilities include 9 outdoor treatment pavilions, 3 healing huts (including a herbal hut, an Ayurvedic hut and a Malay hut), 2 bath houses, and a boutique retail shop. 22 beautiful spa villas are located on the beachfront with direct access to the Spa Village.

Spa Village at Gaya Island Resort. Located in the lush mangrove forests of Malohom Bay off the coast of Borneo, the resort is surrounded by pristine beaches, the mesmerising silhouette of Mount Kinabalu, and the island’s flora and fauna. Harmoniously blending in with the natural surroundings, a series of hillside boast magnificent views. The Spa Village offers a wealth of treatments combining local natural ingredients with traditional Sabahan aboriginal healing methods. From the specialised rice scrubs and masks of the Kadazandusun people to the ancient therapies of the Bajau sea nomads, the Spa is rooted in ancient traditions and aims to help guests restore balance to their bodies and minds. The resort is committed to eco-sustainability in order to minimise its carbon footprint on the environment. As such, walking is encouraged throughout the resort and the use of motorised vehicles is minimised.

Spa Village at Cameron Highlands Resort. The resort is perched on the Cameron Highlands, Malaysia’s summer retreat and tea-growing region, overlooking a stunningly idyllic landscape. Expanded from a 1930s villa, the interiors are ornate, romantic and nostalgic, with grand French doors, wood-beamed ceilings and plantation shutters combined with Asian silk colours and textures. The resort’s Spa Village is a tea-inspired wellness experience. Ancient tea ceremonies, the healing traditions of the indigenous Orang Asli people, and aromatic herbs made from Cameron roses and tea leaves combine to create an pampering journey for the senses.

Sustainable artificial islands

Malaysia is building three artificial islands off the coast of Penang, all centred on sustainability, biodiversity and livability, with autonomous public transport networks, extensive green spaces and advanced design projects.

Shaped like a lily, the islands will comprise several multi-purpose areas to accommodate up to 18,000 residents, and will also feature beaches, urban wetlands, parks, forests, a cultural district, a technology centre and a 25-kilometre-long waterfront. The artificial islands will be free of private cars and will be connected by a public transport network on land, water and air, as well as cycle paths and elevated boardwalks for pedestrians. The islands will be powered by renewable energy, and buildings will be constructed from bamboo, local timber and recycled materials.

Eco-corridors will connect forest reserves to beaches. And in the residential and commercial areas, animals and water creatures will live freely in the canopy and waterways that run through and around the islands, undisturbed by human activity.

According to the designers, the goal of the project is to create a socially and economically inclusive development while preserving the area’s rich biodiversity and natural habitat.

It has not yet been announced when the BiodiverCity artificial islands will be be up and running, but the project is part of the Penang 2030 vision. This government-led programme aims to improve Malaysia’s livability, economy and environment through sustainable projects and developments.

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.