MKT201 - Analyzing Chinese Tourists' Consumer Behavior in Australia

This case study explores the consumer behavior and travel decision-making processes of Chinese tourists, particularly focusing on their travel to Australia. It examines the Chinese outbound and inbound tourist markets, highlighting the increasing economic significance of tourism for both countries. The study delves into the influence of group dynamics and interpersonal perspectives, such as word-of-mouth and reference groups, on travel choices. Furthermore, it analyzes the impact of situational factors like time constraints and antecedent conditions on Chinese tourists' decisions. The report concludes by summarizing the key factors that shape the travel preferences and behaviors of Chinese tourists when planning a holiday to Australia.

Consumer behavior and travel decision making of Chinese tourists

Running Head: Report
Table of Contents
1. Introduction............................................................................................................................2
2. Consumer Behaviour and Travel Decisions...........................................................................3
2.1 The overview of the Chinese Outbound Tourist Market.................................................3
2.2 The overview of the Chinese Inbound Tourist Market....................................................4
2.3 The influence of the groups and the interpersonal perspectives on the Chinese tourist
travel decisions.......................................................................................................................5
2.4 The influence of the situational factors on Chinese tourist travel decisions....................7
2.5 The ways Chinese tourists make travel decisions in case of planning a holiday to
Australia.................................................................................................................................8
3. Conclusion............................................................................................................................11
References................................................................................................................................12
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1. Introduction
The primary motive and the target of the study is to explain the core concepts of the Chinese
outbound tourist market to Australia. In the recent years, it can be observed that there are
number of tourists in China, who are much keen to visit Australia as they have selected the
country as the best tourists’ destination. It is because, in the recent years, it has been observed
that there has been a massive economic growth in China and the rate of the international
consumption of the products and services have also elevated at the same point of time. On the
other hand, it can be noticed that China has converted to be the largest outbound market in
the world and the largest inbound travel market in Australia. The interpersonal and the group
perspectives have also been discussed along with the core influence of the situational factors
on the Chinese tourist travel decisions. In the last stage of the study, the decision making
methods and procedures of the Chinese people at the time of going to other countries has
been discussed in the study (Pham, Nghiem & Dwyer, 2017).
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2. Consumer Behaviour and Travel Decisions
2.1 The overview of the Chinese Outbound Tourist Market
In the case of the Chinese Outbound Tourist Market, it has been observed that not all the
tourists are intended towards shopping, rather they are more intended towards gaining the
core travel experiences in Australia. It can be recently noticed that in Australia, tourism is
one of the biggest sectors that generate the economic position for the further development of
the country. On the other hand, it can be noticed that the economic condition of China has
increased along with the volume of the international tourism markets in recent years. That is
why the Chinese market has been considered as the largest outbound tourism markets in the
world. In the same manner, it has also become Australia's largest inbound tourism markets
and thus it plays a great role in developing the tourism sectors of China (Li, McCabe & Song,
2017).
On the other hand, it can be observed that for Chinese tourists, visiting the major places or
the sightseeing of the country have not been their primary motive and targets. Thus, their
main motive has been to enjoy the atmosphere of Australia and knowing the local life of the
native people of that country. Moreover, in the case of the overview of the Chinese Outbound
Tourist Market, it can be further observed that short outings are very popular among the
Chinese travellers (Park, Hsieh & Lee, 2017).
However, in recent years, it can be further noticed that long-distance outing and tours are also
becoming famous nowadays in the villages and uncommon places in the country. They also
join the flocks of the native boys and girls at the time of touring. It can be acknowledged that
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the Chinese tourists do not restrict themselves within the Chinese foods as they love to
explore the other food items of the country as well. They have discovered many interesting
foods prepared in Australia and that is why they try to have new foods every day while going
outside.
In can be further observed from the year 2017, the rate of the outbound tourism market of
China has increased and there have been four billion trips within the geographical limit of the
country. In addition, China has also been regarded as the largest outbound travelling market
all over the world because the Chinese have completed 131 million of foreign tours since
2017. Furthermore, it can be adversely expected that within 2020, the Chinese outbound
travel market will get increased and there will be prior completion of about 160 million
foreign tours for the travellers. In the case of outbound travel, it has been observed that 70 per
cent of travellers travel and go abroad with their relatives and families (Wang, Weaver &
Kwek, 2016).
2.2 The overview of the Chinese Inbound Tourist Market
In case of the core inbound tourism figures of the Chinese Tourists market, it can be
considered as it is the largest inbound tourism market of the world. In the case of the core
inbound tourism, the increasing market has been at the pace of 1.2 per cent in every year. The
total revenue earned from inbound tourism is about UD 127.1 billion after the completion of
about 141.2 million trips by foreigners. In the case of domestic tourism, there are 5539
million trips that have increased the revenue by 10.8 per cent, as calculated in the year of
2017. According to the core calculations done for inbound tourism, the total number of
tourists visited the country has been 30.54 million (Jiang, Scott & Ding, 2015).
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In relation to Australia, it can be noticed that 1 million Chinese Visitors have visited
Australia since 2016, and that is why China has been regarded as the second largest
Australia's inbound visitors market of the world. Furthermore, the annual growth of the
country has increased by 13.7 per cent since 2005. By 2026, the growth percentage can touch
to 13 per cent, which will attract more than 3 million Chinese visitors at the same point of
time. According to the Australian Tourism department, it has been observed that 3 per cent
of the Chinese visitors to Australia are from Beijing and Shanghai. In case of the core
expenditure by the Chinese visitors to Australia, it can be observed that the total amount has
been $9.2 billion from the year 2016 which has been elevated by 11 per cent from the year
2015. According to the Australian Tourism, the figure is expected to increase by $13 billion
by the year 2020. Thus it can be regarded as that China is the largest source of the market in
the number of visitors and expenditure to Australia (Chen et al., 2016).
2.3 The influence of the groups and the interpersonal perspectives on the Chinese
tourist travel decisions
It can be observed that there have been many influences of the groups and also of the
interpersonal activities on the Chinese tourist travel decisions. As stated by Song, Sparks &
Wang, (2017), it can be observed that the trips or the vacations of the Chinese Tourists have
been one of the core symbolic commodities, which should be planned before going anywhere
else. Thus it can be noted that in the case of the core planning and for carrying out the whole
tasks, the great proximity of the interpersonal influence is very necessary. Thus in the case of
Chinese tourist travel decisions, the word of mouth (WOM) plays one of the important roles
and influences the phenomenon. The word of mouth has been one of the core perspectives
that comes from the family members, friends and relatives of the tourists. It can be noticed
that in most of the cases, the frequent information can be sorted from the word of mouth of
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the relatives and the friends and thus delivered to the potential travellers. The potential
travellers then grab the information from the word of mouth before starting the trip. Thus, it
can be further acknowledged that the word of mouth has been one of the important elements
or the aspects, which influences and affects the core Chinese tourist travel decisions (Li,
2016).
On the other hand, it can be further acknowledged that the reference groups play a very
significant role among Chinese travellers and thus affects the core Chinese tourist travel
decisions. As stated by Yang et al., (2015), it can be acknowledged that the interpersonal
influence has been one of the important criterions that contribute the individual based on the
psychological information. In addition, the reference groups are also known as one of the
most important elements that influence mainly in the service sectors and also has perceived
very limited attention. Furthermore, reference groups are very important elements that exert
on the traveller and develops the communication methods among the members of the groups.
Thus, it also shares direct and deliberative opportunities and thus sharing the core experiences
to one another.
It can be noted that the reference groups of the Chinese Travellers, in most cases influence
the Chinese tourist travel decisions in the most positive manner. However, it also depends on
the beauty of the place and the behaviour of the people, which they have met at the time of
visiting the place. They only share the same experience with future Chinese travellers so that
they can also enjoy the same beauty. However, of the place turns to be bad or unhealthy one,
the previous travellers give a poor review or the feedback to the future travellers and thus in
this manner it affects the Chinese tourist travel decisions. It can be summarized that the word
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of mouth and the reference groups are the two most important elements, that influences and
effects on the Chinese tourist travel decisions in the recent times (Lee & Scott, 2015).
2.4 The influence of the situational factors on Chinese tourist travel decisions
There are some of the core situational factors that influence Chinese tourist travel decisions,
which includes time constraints and unplanned behaviour and antecedent conditions. It can be
observed that in the case of the core situational factors, the choice set theory is one of the
most essential ones and it is one of the most popular choice researches for the destination. In
addition, this is one of the important elements, about and influences the tourists in taking the
main choices for the Chinese tourist travel decisions. Due to this core matter, there are some
of the core limitations caused by the time constraints and the unplanned behaviour and that
have been restricted by a bounded reality. On the basis of the core time constraints and the
unplanned behaviour, it can be noticed that tourists do not take or seek towards the optimal
choice, rather they intend towards taking the core travel decisions, that are much satisfying
from their own viewpoint. However, it can be later recognized that the in case of the core
time constraints and the unplanned behaviour, pragmatic approach is much for the Chinese
tourist travel decision making phenomenon. And thus, due to the pragmatic approach, the
decision-making theory is much less bound and more dependent on the prior context.
According to (), it can be further noted that the pragmatic approaches of the Chinese tourist
travel decisions are also attached with the socially constructed approaches that are also
inclined towards the decision making aspects of the Chinese tourists (Zhang, Gursoy & Xu,
2017).
On the other hand, it can be noticed that antecedent choices have also been one of the core
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situational factors that influence Chinese tourist travel decisions in recent years. Within the
core antecedent choices, the choice of the proper destination has been one of the central
issues within the concept of tourism management kinds of literature. It can be understood the
choice of the tourist's destination differs from one person to another person. Thus, it can be
acknowledged that it is one of the most complex decisions and different elements evolve
within the same concept. As stated, the antecedent conditions are one of the oldest conditions
and situations, used to appear in front of the tourists regarding the core choice of the
destinations. It was because the number of exotic places for travelling was less in the past
ages or in antecedent times. But, in the present era, the number of tourist locations have
increased and that is why the Chinese tourist travel decision-making pattern has also become
much lucid and easier in the present scenario.
Although, there are some of the key destination places, where the tourists think twice before
hopping, because of the increasing price and the distance of the place. However, on the other
hand, it can be noticed that if the climate and the quality of the environment are good in that
places or locations, the tourists will not even hesitate to visit those places ever in their life
(Özdemir & Yolal, 2017).
2.5 The ways Chinese tourists make travel decisions in case of planning a holiday to
Australia
In case of the core methods for the Chinese tourists in making the travelling decisions to
Australia, the section has been elaborated on the independent travellers or the tourists of
China. 19 per cent of the whole tourists visited Australia, are the independent or an
individualist from China. In the case of the core individualists, it can be noticed that their age
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is between 20-30 years old and they have a high income in their country. They have strong
self-awareness and most of the independent travellers or the tourists of China have the
customized or the personalized experiences of the solo trips to other countries as well.
Moreover, it can be observed along with the vast experiences of independent travellers or the
tourists of China, they have also the same urge to know and explore the unknown places in
the country. They do not shop much in the travelling destinations, rather they explore the
places and feels the core climate and environmental quality of that place. The independent
travellers or the tourists of China have also some of the prior influencing characters, by which
they influence their friends as well as seeks for the best accommodation and food at the time
of travelling to the exotic locations of Australia.
In the case of the core methods and ways for the independent travellers or the tourists of
China in planning a holiday in Australia, there are some of the ways, that have been described
below
There are three methods for the core decision-making system for the independent travellers or
the tourists of China and these are Influence, research and purchase. In case of the influence,
it has noticed that are some of the influencing factors for the independent travellers or the
tourists of China and that motivates them to reach the exotic locations of Australia. The
influencing factors may be the climatic beauty or the environment of that place or the word of
mouth of the friends, family members or the relatives. On the other hand, it can be observed
that inspiration has been one of the major points before taking the decisions. in case of the
inspiration, the families and friends have the highest contribution to independent travellers or
the tourists of China (Özdemir & Yolal, 2017).
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The second stage has been the research before moving to the exotic locations of Australia. In
most of the cases related to the independent travellers or the tourists of China, it can be
observed that 52 per cent of the independent travellers see and grab information from the
official websites of the travel agencies that are based in Australia for knowing about the exact
prices of the transport and the food along with the price of the hotels and restaurants at the
same point of time. The other 47 per cent of the independent travellers or the tourists of
China consult with their family members and friends before moving on to Australia.
In the last stage of the purchase, it can be observed that 35 per cent of the independent
travellers or the tourists of China purchases the packages of the long tours from the
government or the private travel agencies of Australia for mitigating additional hazards and
consequences. On the other hand, 27 per cent of the independent travellers or the tourists of
China purchase accommodations from the traditional travel agencies. Apart from these two
categories, 7 per cent of the independent travellers or the tourists of China use the mobile
application of the traditional travel agencies for purchasing exotic packages for them (Han et
al., 2018).
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3. Conclusion
It can be concluded that China is one of the largest outbound markets of the world and it is
the second largest inbound market to Australia among all the travel inbound markets of the
world. In this study, the overview of the inbound and the outbound market of China has been
described along with the core situational factors that affect and influences on the decision
making factors of the Chinese tourists. Moreover, the decision making steps and strategies of
the independent travellers or the tourists of China have also been discussed in this study.
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