The Eastern Investigation
Business Case week 2
Erik Schmidt, 08/09/16

1. What are trends & developments in Chinese outbound travel?

Economic growth and its effects on outgoing tourism.

The biggest development by far in regards with china is the continued growth of the Chinese economy. The economy has been growing in one of the highest paces in the world. Since 1989, the country has experienced an average growth of 9,82 percent on its GDP[1]. In turn, this has led to a growing market in Chinese outgoing tourism. In fact, the Chinese tourism companies are the fastest growing source in the last decade[2]. The biggest source of this outbound tourism growth is due to the increased income in middle class households. The level of middle class households earning enough to allow travel, has increased significantly since 2003[3].

Type of travel.

For a long time, the preferred way of travel was by organized tours and travel forms. Most Chinese tourists would organize their travel through the means of a travel agency. This would often be to locations which attract big groups of tourists. A recent trend is that the Chinese traveler is starting to look for more unique travel locations and personal experiences. This is because Chinese travelers desire more flexibility during their travels. The level of travelers organizing their holiday independently has risen to 44% and is expected to rise to 50%[4]. The package tours are still the primary option for Chinese tourists. Reasons for this are mainly a lack of experience, language barrier and booking through a travel agency saves trouble and time applying for visas, booking tickets and accommodation[5].

Increased used of digital tools.

The digital growth in China is bigger than ever. China currently has over 620 million internet users and 80% of these users have a mobile phone[6]. This has a big effect on tourism. The applications will change the way tourist plan, organize and experience their travel. Hotels and travel tickets will be booked more and more digitally. Feedback sites of destinations will become more important and companies should invest heavily on their digital footprint. Currently, 53% of Chinese tourists traveling outside China use their mobile applications to book their vacation[7]. This links back to Chinese tourist craving a more personalized and flexible holiday.

2. What opportunities (maybe threats) does this offer the Netherlands/Europe?

- The economic growth and increase in outgoing tourism from China creates a big opportunity for the Netherlands and Europe. By investing in locations and attractions specifically for the Asian market, it could significantly increase the number of Chinese tourists visiting the Netherlands/Europe. A second opportunity is for the Netherlands to distinguish itself from Europe by doing this in a better and more original way.
- The increasing desire from the Chinese tourist to have personalized and independent holidays creates an opportunity for the Netherlands/Europe. By accordingly investing in new and unique attractions and accommodations, the European market can drastically improve their market position against the near Asian countries.
- The increased use of mobile applications and internet in general provides certain opportunities. The Dutch/European attractions and accommodations can attract more Chinese tourists by creating applications meant for them. As well as investing in online marketing to reach the Chinese tourist more effectively.

- Possible threats are the overheating of certain popular attractions in Europe. Such as Amsterdam, Rome, Barcelona etc. This would be when too many tourists try to visit and experience these attractions. There would be too many people to process and too little hotel rooms available.
- Other more general threats are the near Asia countries with their competition as a destination, the terrorist threat currently in Europe, the bad weather present in most parts of Europe etc.

Source list

TradingEconomics. (2016). China GDP annual growth rate. Consulted on 8 September 2016, from
http://www.tradingeconomics.com/china/gdp-growth-annual

Trekksoft. (2015). 6 travel trends for 2016 that will drive the global tourism industry. Consulted on 8 September 2016, from
https://www.trekksoft.com/en/blog/travel-industry-trends-2016

IHG. (2016). The future of Chinese travel. Consulted on 8 September 2016, from
https://www.ihgplc.com/chinesetravel/src/pdf/IHG_Future_Chinese_Travel.pdf

Olivier. (2013). 4 major trends in China’s tourism industry. Consulted on 8 September 2016, from
http://marketingtochina.com/amadeus-reveals-4-major-trends-chinas-tourism-industry/

TravelChinaGuide. (2016). China outbound tourism in 2016. Consulted on 8 September 2016, from
https://www.travelchinaguide.com/tourism/2016statistics/outbound.htm

Gentlemen in China. (2016). Top 5 trends of Chinese outbound travel market for 2016. Consulted on 8 September 2016, from
http://marketingtochina.com/top-5-trends-chinese-outbound-travel-market-2016/

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[1] http://www.tradingeconomics.com/china/gdp-growth-annual

[2] https://www.trekksoft.com/en/blog/travel-industry-trends-2016

[3] https://www.ihgplc.com/chinesetravel/src/pdf/IHG_Future_Chinese_Travel.pdf

[4] http://marketingtochina.com/amadeus-reveals-4-major-trends-chinas-tourism-industry/

[5] https://www.travelchinaguide.com/tourism/2016statistics/outbound.htm

[6] http://marketingtochina.com/top-5-trends-chinese-outbound-travel-market-2016/

[7] http://marketingtochina.com/top-5-trends-chinese-outbound-travel-market-2016/