Buyer Interview

The ITB China organizers have extended a special invitation to:  Zhang Xu, Vice president, GM of Government Cooperation of Trip.com Group; Zhang Lei, Senior Vice President of Utour Group Co.,Ltd and Shang Zhengzheng, Director of Outbound Department of CCT,to share their most recent updates on the Chinese travel market and traveler behavior. By leveraging their product knowledge and analyzing customer data, they help global destinations and travel suppliers to align with dynamic trends in the Chinese market.

1) Which channels and ways have you employed in promoting travel products and destinations, or how do you “recommend” your products to customers?

Trip.com: Currently, we provide customers with the latest and high-quality information about our travel products mainly through our “Boss live-streaming” and major promotion activities via our PC and mobile applications, and offer them a good experience across the whole process from browsing to placing an order. We also promote our products via social medias to make our qualified products known and recognized by more people.

CCT: During the pandemic, we have created the official accounts of China Comfort Travel Group Co., Ltd. on TikTok and Little Red Book. The Marketing Department of the Group is in charge of the account operation, output of product contents (making destination recommendation and conducting brand outreach campaign), as well as communications with other new medias. The building of our new media operation team is under way.

UTour: We are dedicated to developing the combined mode of online and off-line promotion. While operating our existing official website of U-Tour and official accounts of Micro-blog and WeChat, we have re-opened some 30 outlets in Beijing. Besides, we have explored diverse online promotion platforms such as live streaming on Little Red Book and TikTok as well as we-media video channel. Through online recommendation, interaction, off-line decision-making, registration, off-line consultation and online purchasing & payment, we have developed an operation mode featured by an integration of online and off-line activities which are reinforcing to each other.

2) What are the shifts of customer preference on products in 2023 when the Chinese travel market witnesses a strong recovery?

Trip.com: The main shift of customer preference in 2023 lies in that customers increase and enrich their segmentation demands, and focus on high-quality travel experience. Over the past two years, demands for medium-and-short-distance travel have been boosted and medium and high-end tourist consumption scenario activated. But now segmented demands are activated, such as customized travel, private travel, themed travel, fragmented travel products and family trip. The overall demands of the travel market in 2023 highlight personality and are conducive to high-quality product promotion.

Another notable phenomenon is the emergence of niche destinations, which are becoming increasingly popular among visitors who prefer less-crowded destinations amid the high travel demands in the post-pandemic period of 2023. The performance of the Chinese travel market during the May Day Holiday is a good example.

CCT: After the pandemic, we have seen a significant shift of the ways of travel, with the type of tour group changing from large & comprehensive one to small but glamorous one. Currently, customers mainly select private tour, customized tour and FIT, and they prefer in-depth travel rather than a tour in a cursory manner. To adapt to more personalized tour demands, travel agencies transform accordingly from providing product-centered services to customer-centered services.

UTour: Firstly, customers prefer long-duration trip, showing their enthusiasm on travel in 2023. Based on the selling performance of long-haul outbound travel provided by U-Tour, 10-day outbound travel are widely welcomed. They are eager to explore resurgent outbound destinations and are seeking more immersive and diverse experiences to truly appreciate the uniqueness of each travel destination.

Secondly, there is a high demand for tourism products that offer visitors immersive experiences and a sense of active participation. After the outbound tourism market is recovered, such lively tourism scenes as museums, art museums, characteristic markets and night markets are included in many tourism products. Additionally, there is an emphasis on providing visitors with rich experiences through themed transportation tours such as glacier express, sightseeing trains, cable cars and sightseeing ships. 

Moreover, there is a growing demand for customized tours among visitors. Recent data on registrations and inquiries indicate that visitors have a strong desire for personalized and customized travel experiences. Increasingly, visitors are expressing their own preferences and ideas when planning and designing their travel itineraries. They actively seek to incorporate their unique interests and ideas into their destination tours. This trend is particularly prominent in the Chinese travel market.

3) Which are the best-selling travel products this year?

Trip.com: Our product routes are well recovered in 2023. Taking the May Day Holiday as an example, we have witnessed that different service lines reach record high, including group travel,  tickets, car rental, pick-up and delivery services, tour guide service, customized tour and visa service. And our overseas business takes the lead in the market.

CCT: Out best-selling products include medium and high-end travel products, high-end island trip, resort for family vocation, polar cruises and family study travel during summer vocation.

UTour: Firstly, short-haul leisure travel and long-haul vocation travel of the destinations in China burst out new vitality and grow rapidly. The inclusion of flexible, diverse and cultural elements enrich the form and contents of domestic destinations. Concerning outbound travel products provided by U-Tour, long-distance tourism products are well sold, especially super-long routes like the 121-day U-Tour Travel Around the World cruise, which had been sold out as soon as it went online selling, and we had to add shipping space to satisfy visitors’ demand. Secondly, niche destination products sell like hot cakes and are widely followed and loved by visitors.

4) Have the average spending increased or declined compared to 2019? And what are the reasons behind it?

Trip.com: Since the second quarter of this year, both travel demand and tour duration increase with the adoption of relevant policy. Meanwhile, we have developed and perfected high-quality  products like private travel group and tickets, offering visitors more choices. Average travel spending of group travel and other service lines are elevated to some extent.

CCT: Generally the average spending for most service lines increased compared to the figures in 2019, and the main reasons include: rising of accommodation, dining and travelling expenses as a result of inflation of overseas markets, insufficient transport capacities of oversea flights after the pandemic, increasing ticket price due to insufficient number of flights, and a rise of fuel oil taxes and dues.

UTour: There is an obvious trend of overall price increase. There are three reasons, firstly, as the numbers of flights and routes are less than the figure before the pandemic, expenses on large-sized transportation means have increased accordingly, leading to price increase. Secondly, after the pandemic, visitors are more demanding on accommodation, dining, traffic and sightseeing, which are relevant to tourism quality. Thirdly, after three years of standstill, many travel resources have been adjusted and transferred, for instance, many car companies have disposed or rented their tourism buses, practitioners begin to re-entry the tourism sector, and overseas tourism resources are back flowing to the Chinese travel market, so the resource adjustment is also contribute to the rising tourism product price.

5) Which travel themes and destinations will be popular in the future?

Trip.com: Travel themes which integrate cultural and sports elements and offering rich and diverse experiences will be popular in the future. The Chinese travel market has entered a new stage of development. Compared to traditional top tourist attractions in China, the destinations recommended by internet celebrities are characterized by a vibrant cultural atmosphere and a strong emphasis on immersive travel. These destinations satisfy various demands, providing unique experiences tailored to their interests. For example, university students can embark on a “special forces tourism” adventure, while medium and high-end visitors can enjoy tours that offer exceptional experiences.

Beyond that, the introduction of cultural and sports elements into travel destination is one of the key points. For instance, destinations will provide rich cultural experience to visitors by holding marathons, city music festivals, concerts, etc.

Travel themes and destinations that appeal to young people will play a crucial role in becoming popular hotspots in the future, Tourism themes and destinations that appeal to young people will play a crucial role in becoming popular hotspots in the future. This is due to the tendency of young people to share trendy travel themes or destinations, which can be effectively spread through social media platforms, thereby creating a desirable image for these destinations.

In general, it is necessary to divide travel destinations based on products, demands and groups. Moreover, incorporating innovative cultural and sports elements into these destinations becomes crucial to attract young visitors. By offering unique and engaging experiences, these destinations can effectively capture the interest and attention of young travelers, thereby enhancing their popularity and desirability.

CCT: In the future, niche destinations that cater to specific groups in immersive tours abroad are expected to become popular. In the past, overseas tourist routes typically involved visiting multiple countries within a short period. However, the trend has shifted towards more targeted travel products, such as in-depth tours of specific regions within a country or specialized offerings like honeymoon travel, family trips, outdoor adventures, photography tours, hiking excursions, and more.

UTour: Customized travel, semi-customized travel, private and small-scale group tour and other flexible travel themes will be popular; family trip and education, outdoor adventure, camping and hiking excursion will be characteristic tours. In addition, travel products based on the four seasons will be more popular and welcomed by visitors, for example, springtime flower viewing, summer seaside excursions and summer retreat, as well as ice and snow tourism in winter.  Following the Beijing Winter Olympics, the ice and snow tourism market has experienced a surge of vitality, with an increasing number of visitors showing a preference for themed winter tourism products. These offerings include activities such as skiing, admiring ice sculptures, indulging in hot spring baths, and exploring night fairs.