2024-11-11
October 31, at the WTA · Xianghu Dialogue 2024 in Sanya, Hainan, Mr. WANG Wei, President of Shanghai Spring International Travel Service (Group) co., Ltd., delivered a keynote speech on "Changes in Consumption Trends in the Tourism Market within China and Europe". Below is a summary of the key points discussed.
When we look at the logo of Spring International Travel Service, we see three "S" letters, symbolizing not only our passion for travel but also the sun, sand, and sea—elements that travelers often dream of. Over time, these symbols have gained deeper meanings: sincerity, safety, and the smiles of our travelers. Since our founding in 1981, Spring International has become one of the longest-standing cultural and tourism enterprises in China’s post-reform era. We are proud to operate Asia’s only airline founded by a travel company. Since 1981, our profits have grown every year, even through 2019 and the post-pandemic years of 2023 and 2024. With a fleet of 129 aircraft and 2,266 routes, we have expanded beyond travel and aviation into lifestyle and retail sectors. Internationally, we have extended our footprint to neighboring countries like Japan, with strong growth across aviation, tourism, accommodation, and retail. We now operate 55 offices and branches in locations such as the United States, Japan, and South Korea.
The revival of the Chinese tourism market and the passion of travelers after the pandemic has been impressive. Since 2024, China has witnessed substantial growth in both total tourism revenue and trips taken, leading to a flourishing tourism industry. Employment within the industry has risen steadily since 2019, with over 60,000 tourism-related enterprises now operating as of January this year, a number that continues to grow. For Spring, both our traveler count and route numbers have surpassed 2019 levels, with revenue and profit margins significantly higher than pre-pandemic figures.
The most favored European destinations for Chinese tourists remain the United Kingdom, Italy, Germany, and Spain. Our offerings for the 2024 spring-summer European season have been a major success. Looking at the data from the first half of 2024, Chinese travel to Europe is shifting. Chinese travelers’ interests are expanding beyond the traditional 11 countries of Western Europe to encompass the entire continent. Compared to 2017, the number of Chinese visitors to Europe has tripled, with a notable 40% increase in visits to the Balkan Peninsula alone, surpassing the numbers seen in 2019.
This shift in destination preference is accompanied by changes in spending patterns. Compared to 2019, tourists’ average expenditure and overall profit have both increased significantly. In 2023, the luxury travel market experienced faster growth than other segments as Chinese tourists not only visited more destinations but also showed a greater preference for in-depth experiences in specific locations, like train journeys through Switzerland. Immersive cultural experiences in countries like Denmark, Norway, and Finland have become defining features of Europe’s high-end tourism offerings. The luxury cruise market is also breaking traditional boundaries, with a total of 14 Mediterranean and Danube river cruise charters arranged throughout the year, as well as polar expeditions to the Arctic and Antarctic, achieving a breakthrough with record ticket prices of up to €60,000, underscoring the growth of China’s high-end tourism market.
In addition, we are beginning to see the broad application potential of AI-driven digital robotics. AI’s impact has been most prominent in our customer satisfaction evaluations. Previously, our staff had to review lengthy feedback, consuming considerable time and resources. AI has streamlined this process, analyzing feedback to visually display traveler satisfaction using smile or frown icons, allowing us to quickly assess product strengths and areas for improvement, significantly enhancing time efficiency. Moreover, these AI robots are invaluable in customer interactions. While traditional call centers typically close at 5:30 p.m., AI robots provide accurate responses without rest, offering 24/7 support to ensure that travelers receive timely responses even after the call center closes. To date, over 150,000 travelers have engaged with our AI-powered digital support.
Looking ahead, the enthusiasm for two-way tourism between China and Europe continues to grow, with Chinese visits to Europe expected to increase by 10-15% annually. Each year, over 10 million Chinese tourists will travel to Europe. Among these travelers, a significant portion will be first-time visitors to ten European countries, particularly favoring coastal cities, while high-end travelers may choose to immerse themselves in the beauty of a single European country.
Indeed, travelers are the best ambassadors. I firmly believe that when visitors experience a country firsthand, their positive impressions significantly increase, inspiring more people to visit in turn. Recently, the Chinese government has made substantial adjustments to visa policies, including visa-free landings and 15-day cruise exemptions, warmly welcoming more European tourists to explore China. Europe is home to numerous World Cultural Heritage sites, and within China’s vast land of over 9.6 million square kilometers lies a five-thousand-year legacy of cultural heritage. These invaluable treasures are waiting for us to explore and uncover together.