A recent report published by Marriot Hotel in collaboration with Hurun Research conducted a survey of young luxury Chinese travellers. But who are these young Chinese travellers? They are what we call the Generation Y or Chinese millennials …
The Chinese outbound market
According to Travel China Guide, 120 million Chinese tourists went going abroad last year. According to Veille Info Tourisme, Chinese tourists spent over US$163 billion in 2015 while travelling abroad. Chinese travellers have always been known as being high spenders and are usually one of the best in that field in several countries. That is the reason why so many countries want to attract Chinese tourists: Australia, the US, France, etc.
Who are Chinese millennials?
First of all, they spend more than their parents. Last data about Chinese Millennials stated that around 2/3 are college graduates, and 80% are employed full-time resulting in a higher standard of living and income ranging from middle-class to upper-class. Over 70% of Chinese Millennials are part of these social classes.
With more than 660 million internet users in China, you may have already guessed that they love the internet as well. They mainly use their mobile phones to access the internet and engage with others on social media.
What about Chinese millennials rich travellers?
According to Marriot’s report, Chinese wealthy millennials travelers love to go abroad to enjoy some fun time every 3 to 4 months. They visited about 13 countries in total until now and had been abroad about three times in 2015.
Money, Money, …
Just like Chinese middle-class travelers they enjoying spending their financial resource. It is estimated that an amount of RMB 420,000 ( approximatively US$65,000) is spent on travelling per year by this group. They also don’t miss the chance to do some luxury shopping when travelling by spending about RMB 220,000 (about US$34,000) per year merely on this activity. Regarding booking hotels, they spend on average US$500 per night.
What are their favorite services?
Obviously, they want the best of the best such as a high-end / luxury level of service. They are very connected and thus, need wifi. They also need smart devices which enable them to receive next generation guest services.
What are their favorite destinations?
Depending on the purpose of the trip, Wealthy Chine millennials destination will vary. According to this survey, about 7 out of 10 Chinese rich millennial travelers went overseas for leisure. Australia ranks first when these travelers are looking for a fun getaway. Europe is a very popular choice as well with France being the top country. 65% of Generation Y luxury Chinese tourists are planning to visit an European country by 2019. Regarding shopping, Japan is the top choice. It was also chosen as the most memorable destination for 2015 and their destination of choice for 2016 Lunar new year.
Media tools used to get information
As I told you earlier, they are very connected. About half of the Generation Y luxury tourists mainly gather information through WeChat official accounts, WeChat moments which are shared by their friends and finally websites. Online OTA’s are also used as information tools by the Generation Y rich travellers. A fascinating finding of this report is that women tend to believe more in their friend’s WeChat moments while men gather information from websites.
Looking for adventure and more independence
Chinese young, wealthy travellers are more independent and flexible regarding schedule. They are not drawn to group travel and prefer travelling with their family members or friends. Also, 56% of them went to travel abroad during Chinese Lunar New Year while only 20% decided to go during the summer season. As a matter of fact, about 90% went abroad with an average of 3 other people (family or friends). The length of stay was 8.5 days last year.
Finally, although having fun and just enjoying some relaxed time abroad is the primary reason of traveling for them, more and more Chinese rich millennials are looking into more adventurous activities. It is expected that 75% more Chinese rich millennials will go on road trip and about 50% more on general adventure travel by 2019.
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— Olivier VEROT (@Olivierverot) 17 juin 2016