Chinese tourists’ ‘revenge travel’ will benefit luxury brands in the world’s upscale cities.
Call it a wave of “destination spending,” perhaps filling up the coffers of businesses already on the mainland.
Chinese authorities are significantly easing quarantine and travel restrictions and reissuing passports. And when it comes to travel “snapbacks,” he said outbound bookings soared by his triple-digit percentage points late last year, a surge seen in data such as Trip.com. The company said the morning of December 27 saw “a staggering 254% increase in bookings for outbound flights to mainland China compared to the previous day.”
A little digging into the data reveals demand for outings spreads across different corridors, extending into Asia and beyond. According to Trip.com, Singapore has the fastest growth of all destinations, with flight bookings jumping six-fold and flight orders increasing by an average of 400%. Bookings for long-haul flights to the UK, US and Australia also increased.
Far from pre-pandemic levels
China Outbound Tourism Research Institute estimates there were 170 million outbound trips from mainland China in 2019, with figures widely quoted from the United Nations World Tourism Organization pegging spending by travelers to pre-pandemic levels far from $255 billion in 154.6 million international trips annually. According to Statista, that number will drop to about 25.6 million in 2021.
The triple-digit surge is an encouraging sign for a brand whose Chinese tourist spending accounts for a significant percentage of its top-line contribution. Bain & Co. estimates that pre-pandemic Chinese consumers purchased about one-third of the world’s luxury goods. According to data reported by the Jing Daily, consultants estimate that this figure could rise to as high as 40% by the end of 2010. For companies like Hermès, which has seen its double-digit growth in sales in Asia in recent quarters, and LVMH, whose sales originating in Asia have improved at single-digit percentages, Chinese tourists It’s no surprise that spending will continue as people flock. foreign country.
With travel resuming, there is some evidence that Chinese consumers have opened their wallets online and locally in London, Hong Kong and the US. The impact of COVID restrictions is lingering. Across the globe and soon in the luxury capitals of the UK, US and Asia, flagship retailers are eagerly awaiting ‘revenge’ tourism and spending with open arms.
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