Chinese tourists are increasingly seeking extended, more premium travel experiences, with Japan emerging as the most favoured destination.
That’s according to the latest study released by digital marketing and research firm China Trading Desk (CTD), in partnership with The Bluedog Group’s Essential Communications.
The report, based on a survey of 15,000 tourists, sheds light on key trends from the China Outbound Travel Sentiment Survey for the global travel retail market.
Serving clients across travel, luxury, fashion, automotive, beauty and spirits sectors, CTD aims to capture key brands in travel retail, building on its role in the i.lab technology area at the 2023 and 2024 TFWA Conferences in Singapore and Cannes, respectively.
China Trading Desk Founder and CEO Subramania Bhatt said: “I am delighted to be partnering with Essential Communications as China Trading Desk builds on its Chinese traveller insights expertise to now focus on the global travel retail market.
“We believe brands can gain a deeper understanding of key demographic behaviours from our sentiment surveys, providing the tools to build highly targeted marketing campaigns as Chinese return to overseas travel in higher numbers in 2025.”
Among other key takeaways from the Q3 survey are insights into Gen Z travellers’ spending behaviour and alcohol consumption trends.
Bhatt said: “The ongoing recovery of the outbound travel market remains robust, and our projection that 128 million Chinese will travel abroad by year’s end underscores that rebound. However, total travel this year will still fall short of pre-pandemic levels in 2019, when 155 million Chinese toured outside the Middle Kingdom.”
CTD estimates that the number of Chinese outbound travellers will hit 200 million by 2028.
The findings show that last-minute planning is prevalent, with 73% of travellers finalising their plans within a month of departure, underscoring the ongoing uncertainty and a desire for flexibility in travel planning.
This trend is especially evident among Gen Z travellers, with nearly half planning holidays within two weeks of the start of their trip.
Longer trips are becoming a more popular choice among travellers, with 80.3% opting to stay between five and 15 days abroad. This represents a notable drop in the preference for shorter holidays, from 19.3% in Q2 to just 10%.
The study has also revealed that Japan has seen a surge in popularity among Chinese tourists in 2023, now ranking third in preferred destinations, just behind Singapore and Thailand, driven by more favourable exchange rates.
How Gen Z is shaping travel trends
- Gen Z is more spontaneous – close to half plan holidays within two weeks of travel (46.8%).
- Gen Z prefers travelling one to two times a year (67.6%).
- Gen Z has the highest proportion of couples (22.8%) and friends (33.2%) travel, indicating a growing preference for romantic getaways or social travel, likely due to shared costs and experiences among peers.
- Gen Z cited Singapore (15.6%), South Korea (13.9%) and Japan (12.4%) as their top three destinations, likely due to accessibility, K-pop culture and diverse tourism offerings.
- Gen Z’s top travel purpose is local cuisine (23.3%), showcasing a strong desire to explore local cultural and culinary experiences.
- Gen Z’s preference for luxury goods shopping is dominated by cheaper prices (24.4%) and discounts (23.5%); both significant factors driving purchases during trips, indicating a universal preference for savings and value-added offers.
- A substantial proportion of Gen Z travellers conduct research before purchasing air tickets (28.3%), highlighting the importance of thorough trip planning via Chinese social media platforms such as Xiaohongshu and Douyin.
Alcohol consumption insights
- For Chinese alcohol drinkers, price remains the primary purchase decision (68.9%), indicating affordability is a crucial consideration, underscoring the importance of competitive pricing strategies for brands aiming to attract cost-conscious consumers.
- The near-equal importance of quality (67%) and brand (66%) suggests that consumers are discerning about the products they choose and are influenced by perceptions of product, excellence and brand reputation.
- The majority of alcohol consumption happens in restaurants (39.4%), followed by at home (37.2%); meanwhile social occasions are the top reason for drinking (82.9%), followed by during meals (57.4%).
- These findings indicate experiential offerings with a focus on premium or exclusive offers are becoming a significant alcohol consumption driver post-pandemic. Bhatt explained: “Brands that can provide a unique experience in a special setting will likely stand out to Chinese consumers.”
- Chinese consumers are more health-conscious in their approach to drinking alcohol, with 37.5% saying they rarely drink alcohol and 60% only drinking occasionally.
- Lighter alcohol choices dominated Chinese preferences with beer (80%) and wine (55%) taking the top spots; this is in comparison to harder spirits such as whisky (17%), baijiu or cocktails (listed under others, 15.4%), which underlines the trend for healthier drinking. ✈
