The "travel formula" of Chinese tourists is breaking down. For a long time, they preferred group package tours, but recent analyses suggest that they are now pursuing experiential tourism through independent travel. As a result, the travel industry is developing products to capture the so-called "big spender" demand.
According to Bloomberg News on the 8th (local time), Chinese tourists are moving away from traditional shopping-centered group tours and are embarking on individual free travel. While group photo sessions at famous tourist attractions such as the Eiffel Tower in Paris and heavy shopping at duty-free stores dominated the popularity of "factory-style" travel, trends are shifting stronger toward unique destinations such as jungle adventures, hot springs, and Aurora World.
These changes are distinctly felt in regions favored by Chinese tourists, such as Southeast Asia and Europe. In Vietnam, ultra-low-cost group tours known as "zero (0) dong (VND) tours" have virtually disappeared, while in Iceland, more young travelers are renting cars for independent travel. According to Pan Pacific Travel in New Zealand, the proportion of group guests with more than 20 people among all Chinese tourists has decreased to below 15%, a significant reduction from the over 85% it once represented.
This shift in trends is affecting the overall industry structure since China is the world's largest source of outbound travel demand. According to the World Travel and Tourism Council (WTTC), there were a total of 146 million outbound trips from China last year, with expenditures reaching a staggering 1.6 trillion yuan (approximately 309.7 trillion won). This year, Chinese travel demand is expected to recover to pre-COVID-19 levels.
Chinese tourists prioritize "unique experiences." According to the travel booking platform KLOOK, 70% of Chinese travelers allocate at least one-third of their total travel budget to experiential expenses. Another travel platform, Trip.com, recently noted a growing interest among Chinese tourists in national parks and family-friendly travel destinations. The travel platform Fliggy of Alibaba Group, China’s largest shopping mall, also reported that "more than half of our customers are organizing their own itineraries instead of following packages."
Digital platforms play a significant role in this change. The Chinese social media platform "Xiaohongshu" has established itself as a key platform for sharing travel information and ideas. On Xiaohongshu, videos of crossing the Sahara Desert in Egypt by iron ore transport trains or enjoying samurai experiences in Tokyo, Japan, along with expert-level travel content about cycling around the world, are quickly spreading, stimulating imitation demand.
In response, the travel industry is swiftly adapting. The global hotel chain Hilton is assigning staff capable of speaking Chinese at each location and has created environments akin to a "second home" by including porridge and noodles in breakfast options, while also implementing UnionPay payment methods to enhance appeal to Chinese travelers. KLOOK, based in Hong Kong, has consecutively released new products tailored to the interests of Chinese consumers, such as desert camping in Dubai, samurai swordsmanship experiences in Tokyo, and handicraft experiences in Taipei. In the vicinity of Sumatra Island in Indonesia, local guides are attending Chinese language classes to better serve tourists.
Recently, in New Zealand, Chinese model agent Bin Sahoo, who spent their vacation hunting rabbits and deep-sea fishing, told Bloomberg in an interview, "Luxury bags are not worth that much. Life is meant to be enjoyed," revealing their travel motivation.