The hospitality industry has been aware of the power of the Chinese market for some time now.
Data from Euromonitor International shows since 2012 China, has had the highest outbound travel expenditure in the world and will continue to see the largest growth between 2017 and 2030.
Not all destinations are expected to benefit from this however. Countries including Qatar, Macau, Iran, Kuwait, and Switzerland are expected to see declines in average spend from the Chinese market, for one very specific reason: Chinese travelers are known for their limited spending on accommodation. In fact they’re much more likely to spend their budget on shopping.
Domestic tourism accounts for 94% of hotel sales in China and in the last six years the amount of budget hotels in China has risen by more than 15,000, while mid-priced and luxury hotels have stayed steady at around 5,000.
As a result, it is countries like South Africa, India, Indonesia, Argentina, and Brazil who will benefit most from China’s growing spend.
Up to 2020, China’s expenditure is expected to dwarf other large regions such as the US and the UK. One key driver of this is the rise of household disposable income in China. While London is expected to far outweigh any one Chinese location, China has multiple regions which are reaching a threshold where international travel becomes a viable opportunity.
Of the countries most likely to attract more Chinese travelers, Argentina has the highest proportion of budget hotels.
How can you increase your chances of attracting Chinese travelers?
It’s important to combine local, traditional, and popular Chinese distribution channels.
Being present on TripAdvisor is vital because independent travelers commonly use it as a resource. You also need to connect your channel manager to Chinese online travel agents like Ctrip, as well as local online travel agents in your country.
Additionally you should make sure your website is available in Mandarin and Cantonese languages, possesses the ability to convert to Chinese currency, and is listed in Chinese language travel guides.
This will increase their confidence and trust in your brand because you’re showing them due consideration.
For more information on attracting Chinese travelers to your small hotel, click here and here for helpful tips.