Mailman X Business Weekly | February 15th
Here is China’s top tourism business news that you need to know from this week:
Chinese Visit more Overseas Destinations During Spring Festival Holiday
Chinese traveled to more overseas destinations during the recently-concluded Spring Festival holiday, online travel agency (OTA) Ctrip revealed. Ctrip users visited 97 overseas countries and regions during the week-long holiday, up from 82 registered the previous year, according to a report released by the country’s largest OTA. Official data showed that outbound trips increased by nearly 12.5 percent to over 6.31 million during the past week. Thailand remained the most popular overseas destination on Ctrip during this period, followed by Japan. The two countries saw over 30 percent of the visitors traveling overseas tracked by Ctrip. Read more here
With the continued growth of the middle class and neighboring cities next to T1 destinations, enthusiasm to travel outbound has never been higher. CNY is always a fantastic indicator as traditionally, it’s been a “stay at home and celebrate with your family” type of holiday but numbers reported by Ctrip have told a different story in 2019. Outbound travel looks to be trending upwards across all of China
Also this week:
More Chinese Buy Travel Insurance
Almost half (46%) of insurance claims were linked to travel schedule changes, followed by 35% for travel delays and 15% for medical expenses. Travel insurance uptake was linked to buying trends. Travelers are booking more exotic destinations, they are buying more expensive items such as gadgets that they pack in their luggage, while more senior citizens are traveling and they are keen on medical cover. Read more here
Scotland Launches WeChat App to better support Chinese Visitors
A new app targeting millions of Chinese social media users has been launched by VisitScotland, in a major push to promote the nation as a key destination for travelers. Read more here
How will China’s Internet Economy Develop Further
With smartphones becoming an increasingly essential tool in daily life, as a communication and entertainment device, as well as a means to facilitate payments for everyday purchases, the elderly are increasingly coming online. Both mobile payment and entertainment are the two biggest reasons the older population is using their phone. Read more here.
China Paid Video Platforms to Serve Over 300 Million Paid Users in 2019
At the end of 2018, a total of 230 users paid for China’s digital video services, a figure that had increased 119% over the past three years, at a greater compound growth than the overall number of Chinese internet users. The latter group had a compound growth rate of 6.28% in the same period. There are more than 800 million internet users in China, offering huge potential for growth in the country’s paid subscription video market, said Entgroup. Read more here.
Luxury Market Still on a High
Millennials have been the key consumer target group for almost every luxury brand over the past two to three years. The report found that total spending on luxury goods was on average higher among millennials aged between 26 and 35 over the past 12 months in China. Read more here
In 2018, Brand Value for Chanel, Dior, Hermès Climbed on China Buying
Despite the signs of a slowdown, according to an annual ranking of the world’s 500 most valuable brands released by Brand Finance, a slew of luxury brands including Chanel, Christian Dior, Cartier, and Louis Vuitton saw their brand values increase significantly from 2018 to 2019, largely due to buying in the Chinese market. Read more here
US And Allies Urged to Counter China with Digital Projects
To respond to China’s ambitions in digital development, ‘we should fight for every scrap of the global market share in advanced technology industries’, said Robert Atkinson, president of the Information Technology and Innovation Foundation. ‘I don’t think in 10 years it is by default that Chinese will dominate the region from the digital perspective,’ Atkinson said, before adding that ‘if we don’t change the course, then yes, I believe they will dominate’. Read more here.
Mailman X is a China digital consulting agency for the travel industry. Reach out here for more information.