Nearly half have bought vacation homes: In a report that provides the tour and travel industry professional with a wealth of information about the wealthy—wealthy travelers, the Hurun Report and the International Luxury Travel Market (ILTM) China issued their annual Chinese Luxury Travel Report during ILTM China held earlier this month in Shanghai. Both the Hurun Report and ILTM study the high net worth individual (HNWI) traveler.
A Dozen Things to Know about Chinese Luxury Travelers: Highlights from the Luxury Travel Report include the following:
- Destinations:In the past year, the top 5 most popular overseas destinations for Chinese high-end travelers were Europe (39 percent), the Americas(36 percent), Africa (29 percent), Southeast & South Asia (23 percent) and Japan and South Korea (22 percent). Africa rose fastest, breaking into the top three as it increased from 15 percent last year to 29 percent. The Americas increased by 5 percent, rising to second. Top-placed Europe fell 6 percent compared with last year.
- Travel themes: the surprise vacation theme last year was Islands and Beaches. Its popularity seems to have peaked, however, with the selection rate dropping to 13 percent this year. Travel around the Worldsaw the fastest rate of growth, establishing itself in pole position with an increase from 13 percent last year to 37 percent. Polar Exploration,the most popular theme last year, fell by 8.5 percent and takes second place with a rate of 22 percent. Hoogewerf said “Travel around the world ranks at the top, indicating that people are travelling while learning.” A prominent new travel theme in recent years, parent-child travel enters the top three with 19 percent.
- Vacation destinations for 2019 Chinese New Year: Almost two-thirds (64 percent) of respondents have chosen to take an outbound trip during Chinese New Year next year. The top three destinations are Australia (20 percent), Thailand(18 percent) andNew Zealand (17 percent). Twenty-nine percent of respondents will stay in China. The most popular choice is to return to one’s hometown, with 10 percent, followed by trips to Sanya and Yunnan close behind with 8 percent and 6 percent, respectively.
- Travel times:the proportion of travelers choosing not to travel at fixed times throughout the year increases by 8 percent compared with the previous year, up to 45 percent. With regards to Travel duringPublic Holidays, the Chinese New Year is the top choice, taking up 23 percent; the National Day holiday (19 percent) comes second, while the Labor Day holiday (8 percent) and Mid-Autumn Festival (6 percent) are the next most popular. Travelling during the summer holiday season increased once again by 4 percent, up to 19 percent.
- Main travel concerns: the biggest travel worries are Traffic Safety, with 42 percent, followed by Natural disasters (25 percent),Robbery and Theft (22 percent), being ripped off (12 percent), dietary hygiene (11 percent) and travel facility safety (11 percent). It is clear that safety issues are the biggest concerns for travelers.
- Travel agency selection:over half of high-end travelers opt for personalized serviceas the key consideration when a selecting a travel agency, with half choosing a well-planned itinerary. Forty-five percent of travelers prioritize problem-solving capacity. Creative itineraries and hard-to-find resources are among the top five factors for consideration, having been chosen by nearly 30 percent of travelers.
- Transport:when it comes to domestic airlines, Air China is the carrier of choice among high-end travelers by a considerable margin with 50 percent; China Eastern comes second, with its selection rate increasing by 7 percent to 28 percent; China Southern ranks third with 23 percent. Among international airlines, Emirates remains in the top spot.
- Hotel/Accommodation:Ritz-Carlton is the most popular luxury hotel brand once again. With regards to hotel membership, the Hyattscheme is the most popular, being preferred by 26 percent of high-end travelers, up from a mere 3 percent last year.
Holiday rentals: in addition to traditional hotel accommodation, 24 percent of travelers will consider Airbnb-style holiday home rentals, more or less the same proportion as the previous year. “Strong sense “of belonging and experience of local life,” ‘lower price,” and “family atmosphere” are their main rationale for taking this route. Said Hoogewerf, “the performance of the high-end short-stay holiday home market has been weak. However, as traveling as a family grows in popularity, the market is likely to see significant development in the future.”
- Home stay: Nearly a quarter (24 percent) of people would choose home stay, maintaining the same level as last year. “Better understanding the local life,” “reasonable prices,” “family atmosphere” are the main reasons for them to choose home stay.
- Popular cuisine: Local Cuisineis the most popular style of food when traveling. Other well-received cuisines among high-end travelers, ranked in order of popularity, include Japanese, Sichuan and Hunan, Cantonese, Italian, French and Southeast Asian.
- Holiday homes:nearly half of high-end travelers interviewed have purchased holiday homes, with 11 percent of them in Thailand, 10 percent in Australiaand 5 percent in both Switzerland and Japan; in China, Sanya is the location of choice, with a selection rate of 12 percent. The homes have an average floor space of 100 square meters. Apartments and villas are the favorite mode of residence. In terms of surrounding environs, homes with a sea view are the most popular.
- Future trends: demand forsmart accommodation experiences, including VR, house-viewing videos and AI services, is expected to rise.
Selected Tables from the Luxury Traveler Report:
Favorite Destinations
Source: Hurun Research Institute Chinese Luxury Travel and Lifestyle Survey 2018
↑ Ranking up ↓ Ranking down – No change *New to Top 10
Favorite Vacation Travel Themes
Source: Hurun Research Institute Chinese Luxury Travel and Lifestyle Survey 2018
↑ Ranking up ↓ Ranking down – No change *New to Top 10
Favored Travel Times
Source: Hurun Research Institute Chinese Luxury Travel and Lifestyle Survey 2018
↑ Ranking up ↓ Ranking down – No change *New to Top 10
Best International Luxury Travel Destinations
Source: Hurun Research Institute Chinese Luxury Travel and Lifestyle Survey 2018
↑ Ranking up ↓ Ranking down – No change *New to Top 10
A REMINDER: The INBOUND Report will not publish next week due to the Thanksgiving Holiday in the U.S. It will resume publishing the following week, with the Nov. 29, 2018 issue.
