Insights & Inspirations | Changing Consumption Trends in Market Segments and the Evolution of Tourism Products

The Europe-China Tourism Dialogue, recently held in Budapest, Hungary, successfully brought together experts to discuss the theme “Changing Consumption Trends in Market Segments and the Evolution of Tourism Products”. The following is a summary of the key dialogues from the event.

Moderator:Ms. Mika CUI, Co-Founder of Qyer, CEO of Roca Culture and Tourism (Beijing) Media Technology Co., Ltd.

Panelists:

Mr. WANG Wei, President of Shanghai Spring International Travel Service (Group) Co., Ltd.

Mr. GUO Ming, CEO and Co-Founder of HH Travel

Mr. SUN Chenglong, Deputy General Manager of CTG Travel

Mr. Laurent VINAY, Chief Brand & International Communications Officer of The Bicester Collection

Ms. Ludivine DESTRÉE, Marketing Manager of the European Travel Commission

Mr. Emmanuel MOUNIER, Secretary General of EU Travel Tech

Dialogue Transcript:

Moderator: What are the future trends in niche tourism markets? How might these trends inspire innovation in tourism products?

Mr. Laurent VINAY: The consumption patterns of Chinese consumers have significantly shifted. Nowadays, Chinese tourists are more inclined to explore and experience new things, with a growing interest in culture. Thus, we have partnered with the National Gallery in London to offer unique experiences, allowing tourists to closely observe the art restoration. We provide diverse products, including leisure cafes and high-quality restaurants, aiming to create memorable experiences for our customers. We hope our guests remember us not only for our products but also for the diverse culinary experiences we offer. During the pandemic, we enhanced our products and services, introducing VIP suite reception services for guests from China and other countries. These spacious suites provide a private shopping experience and ensure guests can enjoy time with family and friends in a quiet environment.

Mr. Emmanuel MOUNIER:The key to tourism development lies in understanding consumer trends. We focus on sustainability and personalization. Over 80% of travelers consider sustainability a key driver when planning their trips. This is crucial for us as it not only shapes our product strategy to meet customer needs but also encourages suppliers to adopt more sustainable practices. In the European market, there is a huge demand for rail travel as a sustainable transport option. Therefore, we offer “multimodal transport” options, combining tourism services with various public transportation modes. The trend of personalized travel is evident, and travelers need to manage a lot of data. We provide tools to simplify the search process. Undoubtedly, new AI tools will fundamentally change how travel services are delivered to consumers, and we need to provide the appropriate tools to adapt to this change.

Mr. WANG Wei:China’s vast territory and diverse ethnic cultures offer huge potential for the tourism market. In 2023 and 2024, the Chinese tourism market has undergone significant changes. Due to the reduction in international flights, ticket prices have soared, leading high-end and mid-to-high-end market consumers to become the main travelers. Spring International Travel Service offers products that meet the needs of the high-end market and benefits from it. In Europe, new forms of tourism such as art tourism and music tourism are becoming increasingly popular. The proportion of young tourists is significantly increasing, and they are more sensitive to information and more skilled in using technology but also lack patience. Therefore, travel agents should adjust their information dissemination and technology investments accordingly. Additionally, changes in Chinese tourists’ use of credit cards and cash require the European tourism market to adapt to this new trend. Advanced information technology in China enables European tourists to enjoy safe and efficient services at Chinese tourist attractions. We look forward to more Europeans understanding Chinese culture and tourism products, promoting deeper cultural and tourism exchanges.

Mr. GUO Ming:HH Travel, a brand under the Trip.com Group, specializes in providing high-end travel service to China’s high-net-worth and ultra-high-net-worth individuals. Out of China’s 1.4 billion population, over 200 million are considered affluent, and the high-end travel market mainly consists of 2 million high-net-worth individuals among them. Currently, the high-end travel market in China is mainly divided into four types: couples/romantic trips, family trips, filial piety trips, and friendship trips. These trips typically involve small groups of 2-8 people, with members usually knowing each other. Previously, high-end travelers would travel about four times a year, but this frequency has decreased to about 2.5 times due to the pandemic. The duration of trips has also increased from one week to ten days to three weeks to a month. In the future, Europe’s advantage in the high-end travel market lies in its ability to offer themed and segmented experiences and turn them into products. Europe’s rich resources, high-quality services, reasonable costs, and efficient operations are its competitive advantages in the global tourism market. HH Travel looks forward to offering a diverse range of products to meet tourists’ choices and needs.

Moderator: What are the characteristics of European tourists’ demands in the inbound tourism market? What opportunities can we seize in the outbound tourism market?

Mr. SUN Chenglong:Inbound tourism is showing a strong recovery trend. Taking CTG Group as an example, the number of inbound tourists in 2024 increased by 743% compared to 2023, that’s a significant growth. The demand for tourism products is also becoming more diversified, with noticeable growth in business travel, cultural exchanges, artistic performances, and cultural education. Simultaneously, there is a growing concern among tourists about travel health and safety, with over 70% of European tourists having specific requirements for safety and health. In the outbound market, Chinese and European tourists share many consumption preferences, such as a substantial rise in demand for personalized small group and customized services. Apart from traditional popular destinations like Italy, France, Switzerland, and Germany, there is also a rapid growth in demand for niche destinations in Eastern Europe. Tracking these advantages and developing more suitable products for consumers will be a focus in the future.

Moderator: How do Chinese inbound tourists differ from tourists from other regions in the niche market?

Ms. Ludivine DESTRÉE:There are a gap between tourists’ understanding and practice of sustainable tourism. Although they claim to support sustainable travel, their actual choices are not always the most environmentally friendly. Therefore, we aim to improve tourists’ awareness of sustainable travel through new strategies and make them understand the benefits of being responsible travelers. In fact, sustainability has become an important change in travelers’ behavior, especially in China. Chinese tourists tend to follow their passions and interests, with food, culture, nature, outdoor activities, city exploration, and uniqueness being the main points of interest. Of course, we also realize that the European market lacks sufficient understanding of China, and we need to increase the promotion of Chinese culture and tourism products. For example, Zhangjiajie inspired the Hollywood blockbuster “Avatar”, but many Europeans may not be familiar with it. Therefore, we need to cooperate with European tourism platforms to launch more quality products, allowing Europeans to better understand and book Chinese tourism products.