As China’s super-rich ditch group tours for bespoke experiences, can its travel industry keep up?
Demand is growing among wealthy and adventurous Chinese travellers for personalised and curated overseas getaways in what is still a fledgling market
Chinese tourists have been ditching group tours at a rapid rate, and custom-tour operators are reaping the benefits of this booming tourism industry segment. Now that most of these travellers are seasoned, they’re starting to seek unique experiences, and most of them have the adventurous nature and disposable income needed to partake in these high-end tours. But there is one traveller demographic within this industry that is still underserved by China’s booming online travel agencies: high-net-worth individuals.
Most online platforms catering to luxury Chinese travellers choose to rely on third-party partners to offer high-end travel options, but that is no longer enough to attract this growing demographic
As Chinese tourists have increased the frequency of their travels abroad, a growing demographic of high-end tourists has taken to joining smaller customised tours hoping to escape the crowds. According to Chinese research company Hurun Report, about 3.9 million families in China have assets worth more than US$893,000 and 1.6 million households have more than US$1.5 million. Many of them want to spend their money on experiential travel abroad.
The transaction value of China’s customised travel market totalled US$1 billion in 2017, according to a recent report from Chinese research firm iResearch called China Online Customised Tourism Industry Report. That research firm expects this industry segment to grow as more travellers become aware of the option. The report notes that the customised travel industry is in the early stages and online sales for such tours remain low, leaving significant room for growth. And while the market segment has been around in China since 2000, only 7.9 per cent of customised tour revenue came from online bookings in 2017.
In an effort to attract more of these high-spending travellers, Ctrip launched a customised tour app in March called Jiugongge (九宫格). The company offers a personal touch to help high-net-worth individuals with their itineraries – a travel concierge will plan an entire year’s worth of travel, including booking yachts and charter flights as well as tending to overseas medical needs. The personal travel agents may give Ctrip an edge in the market segment, as iResearch notes that there are no certification or training standards for a travel concierge.
As Chinese tourists have increased the frequency of their travels abroad, a growing demographic of high-end tourists have taken to joining smaller customised tours
While more Chinese tourists, particularly affluent travellers, have shown increasing interest in cultural institutions around the world, few museums and tour companies that specialise in such tours have partnered with booking agencies. This leaves more room for the travel concierge to recommend cultural sites within a personalised itinerary.
Most online platforms catering to luxury Chinese travellers choose to rely on third-party partners to offer high-end travel options, but that is no longer enough to attract this growing demographic. The iResearch report states that high-net-worth travellers judge customised tours based on whether they receive personalised service, and whether the tour suits their travel desires and meets their required standards. Many customers still rely on word of mouth marketing to determine whether a travel agency can provide them with the trip they need.