Understanding and Engaging the Chinese Independent Traveler: Insights from WTM

On November 8, 2017, Dragon Trail Interactive’s Managing Director – EMEA, Roy Graff, joined the founder of COTRI (China Outbound Tourism Research Institute), Prof. Wolfgang Georg Arlt, to present a panel discussion on Chinese independent travelers at WTM London, co-organized by PATA (Pacific Asia Travel Association). The event was attended by tourism professionals from organizations such as the Italian National Tourism Board, the World Tourism Cities Federation and Visit Britain, and by companies including Thomas Cook China, Ctrip, Avis and Four Seasons Hotels and Resorts.

Chinese outbound travel hit 122 million trips in 2016, with an average growth rate of 9-11% to destinations outside of Greater China. As the market expands, it is also changing – the stereotypical coach tour is stagnating or declining in many destinations, as FITs (free independent travelers) drive nearly all growth. This new demographic requires that we update our understanding of Chinese tourists, as well as our strategies to market to them.

Prof. Arlt identified factors driving the growth in Chinese tourism around the world: the easing of visa restrictions and increase in new flight routes, especially those connecting China’s second-tier cities to international destinations. Mass market packages still exist, he explained, and will continue to do so for the many Chinese who have yet to take their first trip abroad, but destinations should focus on the independent traveler – she (the Chinese tourist market is 56% female) spends more than package tourists, is much less likely to push out traditional markets, and will probably be an experienced traveler who will visit smaller destinations and help prevent overtourism though dispersal.

Unlike Western FITs, said Prof. Arlt, Chinese have more money and are seeking prestige through travel, and they are also interested in very different experiences: Enjoying fresh air, seeing stars in the night sky, picking wild fruits and mushrooms, experiencing authentic daily life, and having the kinds of unique experiences that will give them “face” within their social and professional circles.

So how does a tourism destination reach this kind of high-spending, savvy Chinese customer? The answer is digital, according to Graff. In his introduction to the Chinese digital landscape, he illustrated how Chinese are very much ahead of the rest of the world when it comes to mobile use, including mobile payments and QR codes. From 53% in 2014, the percentage of Chinese travel booked online jumped to 80% in 2015, and 71% of bookings on China’s dominant OTA, Ctrip, are mobile.

Reaching the Chinese FIT market online requires knowing how to manage digital presence, both through your own website and social media channels, and by monitoring and engaging with your listings on third-party sites like OTAs and review sites. It’s also important to understand the complex Chinese online travel market and identify the best partners to work with.

Word of mouth is essential, and you can harness this by promoting user-generated content online through contests and closely monitoring what is being written about you, and by providing guests with QR codes that will enable them to easily reach your destination’s online listing so that they can review it.

Turning to all-important Chinese social media and mobile platform WeChat, Graff offered both simple and more costly solutions for standing out, from articles to mini programs and even payment solutions. Ideally, articles should be a mix of engaging content, celebrity news and endorsements, practical information, and deals and promotions, he said.

The event ended with the launch of a new short video series from Dragon Trail Interactive and COTRI, called China Outbound Travel Pulse. The first episode looks at the Chinese FIT market. Go here to watch the video and learn more.

The full presentation can be accessed here: