Overview of Chinese Outbound and Inbound Tourist Market

Consumer
behaviour

Contents
Overview of the Chinese outbound tourist market................................................................2
Overview of the Chinese inbound tourist market..................................................................3
Impact on the Chinese tourists’ travel decisions by the groups and interpersonal..........................4
Impact of the situational factors over the Chinese tourists’ travel decisions.................................5
Travel decisions made by the Chinese tourists planning a holiday to Australia.............................6
References................................................................................................................ 9
Appendices............................................................................................................. 11
Appendices 1........................................................................................................ 11
Appendices 2........................................................................................................ 12

Overview of the Chinese outbound tourist market
China is having the globe’s largest outbound travel market. This market is set to grow more.
By 2020, it is anticipated that more domestic travellers of China will graduate to the overseas
trips and will drive yearly outbound traffic to 160 million. It has been found that over 70% of
the Chinese tourists travel with their friends and families so this group is considered the
world’s highest spenders per single trip. There is more scope to grow and 6.1% annual
growth is expected in the coming years (Huang, et al. 2015).
The demand for the classic guided travel package from the Chinese travellers is on the
decline. On the other side, demand for the semi-guided tours, high-end travel packages and
personalized experiences are growing quickly. The preferences, behaviours, financial status,
customer decision-making process and consumption patterns are analysed under the eight
segments. These segments are value seeking sightseers, sophisticates, individualists, novices,
aspirants, unpluggers, backpackers and shoppers. The value seeking sightseer comprises the
visitors lower to the middle income (Tse, 2015). They are value oriented and desire basic
sightseeing with the laid back attitude. Such visitors tend to spend on comfortable hotels and
transportation. The backpackers are identified as low to middle income workers from the age
of 20-30. They like to experience the local culture and enjoy outdoor activities. Such visitors
are price sensitive but are keen to spend money on the entertainment along with some local
activities. Unplugged is regarded as single and having middle income. This segment is price
sensitive and do not have specific needs but like to escape from daily stress. The shoppers are
aged 30 to 40 and are married couples (McKinsey & Company, 2019). They are much
influenced by social media and prefer a shopping oriented travel experience and basic
touring. The aspirants are the low income and willing to exceed the budget. They focus on the
family and friends and pursue high-status appreciation from the friends. The novice travellers
are the middle income visitors and choose Chinese speaking tour services because of the high
language barrier (Yu and Weiler, 2001). They like to visit iconic landmarks. The
individualists are having strong self-awareness and desire a customised travel experience.
Such visitors are having a higher income. The sophisticated traveller segment is middle aged
with the higher income. They are fewer prices sensitive and focus on the quality. They tend to
design their own travel experience (Hughes, Wang and Shu, 2015).

Overview of the Chinese inbound tourist market
China is one of the rapid growing inbound travel markets to Australia. It is regularly
increasing the ranks as well. Chinese visitors spend more in Australia than in other countries.
The trend of Chinese visitors in Australia is continuously increasing as compared to other
countries. Chinese visitors play a significant role in the Australian economy growth. The
Chinese tourist’s expenditure has been grown in the last four years. The Australian tourism
industry has made progress constantly and contributing to economic growth. The Chinese
travellers are taking a robust interest in the Australia visit and to its natural sightseeing. The
Chinese visitors spending have crossed 6.75 billion U.S Dollars yearly. The spending is
anticipated to increase by 30% till the end of 2020 by tourism development and marketing
efforts in China (Marketing to China, 2019). The Chinese inbound tourism market is
flourishing due to the several reasons like the Australian government keeps on introducing
visiting plans especially for the Chinese travellers. The Chinese visitors visit the enviable
climate in several seasons all year around. China views Australia as a ‘Land of the miracles’
and a romantic destination (Trinh and Ryan, 2017).
The Chinese visitors spend more on tourism more than anything else. The infrastructure
offered to Chinese visitors has been improving. Chinese are catered better from online
booking to the arrival, accommodation, visits and food and beverages. The Australian wines
are also extremely popular as there is no domestic wine industry in the home country. The
Chinese and the Australian governments also come in the agreements for the positive
arrangements in the landmark deal (Jago, et al. 2015). The new plans and policies have been
introduced for the Chinese visitors in Australia and the travelling arrangements are made as
per the cultural sensitive needs. Australia attracts to the Chinese visitors by the innovative
policies aiming at enhancing the Chinese tourism market. It comprises developing Mandarian
language facilities, Chinese language guides, Chinese food and drinks and the marketing
material specially customized for the Mainland Chinese market. The business delegates also
visit Australia from China constantly and devote time in making deals with the local partners.
The Australian government is also welcoming business delegates as such activities help to
grow economies of both nations. China with a wide growing population and the growing
middle class has been given top priority by Australia (Jin, et al. 2016).