Travel demand is shifting towards cultural experiences and social connections. In a competitive market with strong supply and demand, destinations should focus on addressing travellers’ appetite for learning. By presenting traditional culture through modern narratives and relatable, everyday contexts, destinations can establish unique local identities that resonate with a broad audience.
Tina Cheng, Research Analyst
Market Definitions
This Report focuses on the leisure travel market, including both domestic and outbound travel. Business travel is beyond the scope of this Report. The consumer research covers participation in holidays, future holiday plans, interest in different types of trips, motivations for leisure travel, preferred local attractions, travel product sales channels and perceptions of specific platforms. Please see the Databook for more details.
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EXECUTIVE SUMMARY
- Key issues covered in this Report
- Definition
- What you need to know
- Consumer preferences for domestic travel are shifting
- Recovery in outbound tourism is slower than expected; high earners and 18-24s should be a key target
- Destinations, platforms and the transport and accommodation industries are proactively responding to changing demands
- Consumer demand and market opportunities
- Amid intentional spending, demand for diverse experiences will drive quality improvements in the travel industry
- Graph 1: consumer spending on holidays* and year-on-year growth, 2017-28 (fore)
- What we think
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MARKET TRENDS
- Domestic travel
- The domestic travel market has rebounded to 2019 levels, but growth has slowed significantly
- Graph 2: number of domestic trips taken and year-on-year growth, 2017-24
- Graph 3: total expenditure by domestic tourists and year-on-year growth, 2017-24
- Demand for public holiday travel remains strong, but fluctuating airfares and hotel prices add uncertainty to travellers’ plans
- Per capita domestic tourism spending has grown slightly, with consumers cutting back on flights and hotels while prioritising cultural experiences
- Graph 4: per capita spending on domestic travel, 2019-24
- Outbound travel
- Recovery in outbound tourism is lagging behind expectations due to limited resumption of international flights
- Slow growth in outbound travel participation highlights the need for a strategic focus on high earners and 18-24s
- Graph 5: participation in outbound leisure travel in the past 12 months, by select demographics, 2024
- Graph 6: participation in outbound leisure travel in the past 12 months, 2021-24
- Outbound travellers are mainly concentrated among high-income households
- Market predictions
- Amid intentional spending, demand for diverse experiences will drive quality improvements in the travel industry
- Graph 7: consumer spending on holidays* and year-on-year growth, 2023-28 (fore)
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COMPETITIVE LANDSCAPE
- Destinations: find ways to stand out
- With policies driving a shift from quantity to quality, destination tourism is becoming increasingly diverse
- Upgraded transport networks enhance accessibility and fuel tourism growth
- Popular domestic destinations cater to a wide range of needs, while lesser-known cities spark consumer curiosity
- Graph 8: top 15 domestic destinations by total number of visitors received, 2023
- Graph 9: year-on-year growth in numbers of visitors to domestic destinations*, ranked by growth rate, Q1-Q3 2024
- Asia remains the top choice for outbound travellers; overseas destinations should target younger consumers
- Graph 10: top 10 destinations by number of trips organised by travel agencies in H1, 2023-24
- Travellers are venturing further afield, and ‘tourism+’ strategies can drive interest in European and North American destinations
- Graph 11: top 10 destinations by year-on-year growth in number of trips organised by travel agencies in H1, 2023-24
- Platforms: building scale and profitability
- OTAs, local services, social media apps and travel guide platforms form a diverse competitive landscape
- Ctrip targets the premium market, sharing high-quality resources with tourism service providers
- Graph 12: attitudes towards purchase channels – top three characteristics associated with Ctrip, 2024
- Meituan expands in lower tier markets, driving innovation through local services and travel integration
- Graph 13: attitudes towards purchase channels – top three characteristics associated with Meituan, 2024
- Douyin’s emotional engagement helps boost brands’ conversion rates
- Graph 14: attitudes towards purchase channels – “inspiring product content motivating my desire to purchase”, 2024
- Mafengwo highlights its expertise in travel guides, with exclusive services aiming to satisfy seasoned travellers’ desire for novel experiences
- Graph 15: attitudes towards purchase channels – top three characteristics associated with Mafengwo, 2024
- Accommodation and transport: navigating a path to survival
- With oversupply in the market, diversified revenue streams may be the way forward for hotel brands
- Graph 16: hotel occupancy rates during National Day Golden Week, 2019 and 2024
- Airfares have declined compared to the same period in 2023
- Travel and hotel companies are leveraging Pre-sale strategies to meet value-driven demand and boost off-season tourism
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CONSUMER DEMAND
- Overview of holiday spending trends
- Consumers’ holiday preferences are becoming increasingly varied
- Depth: immersion in every destination
- Relieving stress remains the primary motivation for travel
- There is a growing demand for learning during travel
- Graph 17: motivations for leisure travel – “to acquire new knowledge”, by city tier and household income, 2022-24
- Themed tourism offers immersive opportunities to learn about local culture
- Outdoor sports not only connect tourism resources and brands but also foster interpersonal bonds
- Graph 18: interest in tourism resources – outdoor sports spaces, by consumer groups and motivations for leisure travel, 2024
- Graph 19: outdoor sports spaces, by motivations for leisure travel, 2024
- Hiking and cycling trips are trending, presenting opportunities for destinations to appeal via interest-based marketing
- Beyond historic sites and museums, knowledge-seeking travellers crave everyday exploration
- Graph 20: interest in tourism resources, by motivations for leisure travel, 2024
- Co-create with locals to develop life-centric travel experiences
- Warmth: finding joy throughout the journey
- Gen Z is actively exploring the meaning of travel
- Rather than friendship, Gen Z seek companionship and emotional resonance on their travels
- Create warm travel experiences for younger people with thoughtful, flexible services
- High-budget family travellers focus on strengthening bonds
- Graph 21: top four motivations for leisure travel, by travel budget and family structure, 2024
- Premium family travel products should focus on shared growth experiences between parents and children…
- … and align with preferences for interactive family-friendly venues
- Graph 22: interest in tourism resources, by travel budget and family structure, 2024
- Enrich family travel with interactive activities and showcase brand thoughtfulness through attention to detail
- Bring children’s dreams to life through costumes and celebrate moments of family collaboration and support
- The privacy and exclusivity of customised trips appeals to high-budget family travellers
- Customised trips add warmth to family experiences by emphasising growth and memory-making
- Breadth: where interest leads, opportunity follows
- Niche tourism is gaining popularity, and domestic and international destinations are competing for new opportunities
- Translate ancient culture into modern language to enhance the appeal of historical heritage
- Leverage mystery to ignite tourists’ desire for exploration
- High earners in Tier 1 cities are leading the overseas tourism rebound, representing a strategic target for European and North American destinations
- Graph 23: intentions to take an outbound leisure trip in the next 12 months, by household income and city tier, 2023-24
- Gen Z consumers are eager to travel abroad but face budget constraints
- Graph 24: leisure travel budget for the next 12 months, by travel intentions, 2024
- Graph 25: leisure travel budget for the next 12 months, by generation, 2024
- Partner with games to connect international destinations with younger target audiences
- Spark younger consumers’ interest in foreign cultures to inspire outbound travel
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FUTURE OPPORTUNITIES
- Consumer demand and market opportunities
- Break boundaries and fully integrate local tourism resources
- Weave cultural heritage into travel experiences
- Link outdoor sports with local industries to build destination branding
- Destinations and brands boost each other’s influence
- Understand your audience to add warmth to travel experiences
- Create a friendly social atmosphere through shared interests to address young people’s need for connection
- Curate travel memories for high-income families to celebrate shared growth and reinforce the brand’s role as a companion
- Leverage trends to put high-quality destinations in the spotlight
- Capital investment is key to differentiating niche destinations
- Break barriers between virtual and real worlds to drive engagement
- Tap into film and TV trends for quick traffic conversion
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APPENDIX
- Methodology
- Abbreviations
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