Are Chinese independent travellers the next great opportunity?
The Chinese independent traveller’s reliance on WeChat for overseas travel reveals the importance of apps and social media for luxury brands
Editor’s note from Jing Daily: The rising FIT (Free Independent Travellers) travel trend in China represents an untapped opportunity for luxury brands. In this story, it is noted that the majority of FIT travellers are Chinese millennials, a group who is projected to drive 55 per cent of the expansion in China’s consumption spending over the next five years.
With the introduction of the multiple-entry 10-year visa to the United States in 2014, Chinese visitors are returning and discovering new destinations. Even more significant, is the rise of the so-called the Chinese FIT (Free Independent Travellers).
As a result, Brand USA, an organisation dedicated to marketing the US as a premier travel destination, is promoting the proximity of American destinations through its “All Within Reach” campaign.
The campaign encourages visitors to combine their visits with other nearby destinations by showcasing the many and often unknown experiences overseas visitors will have within a few hours of their arrival into the United States.
Although 60 per cent of Chinese consumers still prefer to travel on package tours to long-haul destinations mainly due to language barriers, more and more younger visitors, especially millennials, are opting to travel as FITs. This gives them the opportunity to create their own customised itineraries that are not bound to rigid schedules.
The growth of FIT travel is further demonstrated by data showing the growth of the US$2.1 billion online car rental industry, which grew by 88.6 per cent in 2016. According to TripAdvisor China Unbounded, nearly half of Chinese FITs plan to take more trips abroad and 52 per cent will stay for longer periods. Currently, 40 per cent stay 4-6 nights abroad.
Millennials will drive 55 per cent of expansion in China’s consumption spending over the next five years.