Consumer Behavior Case Study: Chinese Outbound and Inbound Tourism

Running head: ASSESSMENT 3: CONSUMER BEHAVIOR CASE STUDY
ASSESSMENT 3: CONSUMER BEHAVIOR CASE STUDY
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Author Note

ASSESSMENT 3: CONSUMER BEHAVIOR CASE STUDY1
1. Overview of Chinese outbound Tourism market (International Travel)
Chinese consumers are increasing the international tourist markets. Various tourist
destinations across the world are witnessing significant growth in number of Chinese visitors in
the recent years. Surveys were conducted among Chinese tourists aged between 18 and 56 is as
many as 44 cities. It was found that the recent travel trends among the Chinese tourists reveal a
more selective pattern rather than the previous broad-based growth of market. Family happiness
was given more priority above being successful by as many as 75% of the respondents, which is
a huge increase from 62% that was recorded in 2009 (Huānyíng to the new Chinese traveler,
2019). 55% the Chinese customers were found to be confident that their income would increase
gradually towards the future. In another survey conducted among 2000 Chinese tourist some
important facts about the outbound Chinese market were discovered.
It was found that more Chinese tourists are giving more importance to travel experience
rather than shopping or related activities. The new Chinese tourists are giving more importance
to knowing the local culture. The previous trend on only visiting the important landmarks are
decreasing. More Chinese tourists are preferring short outings rather than long distance outings.
There has been marked decrease in even the food trends. Chinese tourists no longer just indulge
in Chinese food but prefer the local cuisines. The outbound tourist are no longer homogenous
like previous years. Eight essential behaviors were found among the travelers. 20% of the
tourists were found to be value seekers when it comes to international travel. They were the
mothers and fathers with low to middle income. For this segment travel is an important getaway
from everyday life. 19% were identified as shoppers. These were mainly the married couples
aged 30 to 40 years. 13% of the outbound Chinese tourists were found to be individualists. They

ASSESSMENT 3: CONSUMER BEHAVIOR CASE STUDY2
were aged 20 to 30 years. 12% were identified as the backpackers (Huānyíng to the new Chinese
traveler, 2019). They were the low to middle income workers. These people enjoy outdoor
activities and want to experience the local culture. 11% were found to be the aspirants. They are
in search of modern metropolitan lives. Family and friends are important for this identified
groups. Sophisticated travelers, unplugged or single middle income customers and the middle
income novice travelers comprise 10%, 10% and 5% respectively. Hence, it can be seen that the
outbound travel consumer market has expanded greatly and have become greatly homogenous.
The largest customer segments being, value seeking shoppers and individuals.
2. Overview of Chinese inbound tourism market (Traveling to Australia)
Traveling to Australia and the decision making functions in regards to the same are
important in the context of the Chinese travelers. Currently, Chinese tourists are one of the
largest customers of Tourism Australia. The Chinese outbound tourist market is the largest
customer base of the tourism sector of Australia since 2016. There were 8.5 million foreign
visitors that came to the county in 2018. Among them visitors from China made increased by
around 5% with 1.3 million people coming to Australia from the country. The total spending of
Chinese tourists in the country was found to 11.7 billion dollars (Huānyíng to the new Chinese
traveler, 2019). This was a 13% increase from the previous years. However, the only issue that
was identified was the slowing of the growth rate of the Chinese market for Australian tourism.
The inbound market of Chinese tourist to Australia reflects the changes that have been
noticed in the outbound travel behaviors of the Chinese tourists. The Chinese tourists that come
to the country were found to spend 44 nights on an average in Australia. 46% of the tourists were
found to be making their first visits. On the other hand 54% of the people were coming for a

ASSESSMENT 3: CONSUMER BEHAVIOR CASE STUDY3
return visit. Hence, a proper balance was seen between the first visitors and the return visitors.
By 2020 the Chinese tourist based market of Tourism Australia is predicted to be worth 13
Billion Dollars. The year on year spend of the Chinese tourists in Australia were found to be
12.9% (Huānyíng to the new Chinese traveler, 2019). The average Chinese tourist in Australia
spends about 8800 dollars per trip in the country. 200 dollars were the average spend per night. It
can be said that the average Chinese customer is very important for the Australian market. Song,
Sparks and Wang (2017) have found that there has been notices a disagreement prevention
culture among the Chinese when it comes to travel decision making. The young Chinese
travelers depend more on group decision making. The values of forbearance and conformity are
imbibed within even the young Chinese travelers. This makes them consider the opinion of the
group more than individual opinion. Hence, to cater to the Chinese travelers, techniques should
be implemented that attract the Chinese tourist group rather than the individual tourists. In line
with the same the various tourism operators are focused on involving group activity packages to
better reach the Chinese tourists. Surprisingly, most of the findings were generated from
analyzing the opinions of the young Chinese travelers.
3. Interpersonal influences affecting Chinese tourists
Reference group influences
Chinese travelers tend to travel in closely knit groups. There is a culture of talking about
the travels when they return home. This makes reference group influence a strong factor.
Influence groups are created that help in travel decision making. There are usually the presence
of various Chinese friendship groups. These groups tend to travel and come back with
information in regards to a particular destinations. These people form the principal reference