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China expected to rise in luxury travel market

Updated: 2013-07-31 07:41
By Zhuan Ti ( China Daily)

Fledging overseas travelers tend to go in group tours and stay in budget hotels. When they become more experienced travelers, they prefer to travel individually and pick more comfortable luxury hotels like Peninsula, he said.

The Hurun report also places Chinese travelers first in regards to spending for three consecutive years. In 2012, they accounted for 24 percent of tax-free consumption worldwide, 8 percentage points higher than Russians.

On the rise

The Chinese people's per-purchase spending is also on the rise, hitting 875 euros ($1153.4) in 2012, an eight percent increase year-on-year, according to the report.

Rupert Hoogewerf, chief researcher and CEO of Hurun Inc, said those in the global tourism industry have to know more about Chinese travelers as they have become the most important customers.

Statistics from the China Tourism Academy show that the Chinese made 8.32 million overseas trips in 2012, an 18.4 percent annual increase.

China expected to rise in luxury travel market

Sub-forum on education during the luxury travel trade show.

As China overtakes the US as the largest source of overseas visitors, more and more international hotel brands are tapping into the second largest economy.

Paul Kerr, CEO of London-based Small Luxury Hotels of the World, said he has high expectations of the Chinese market.

Founded in 1991, SLH offers some 520 luxury small independent hotels in more than 70 countries that provide "exceptional" facilities and experiences, according to its website.

Following the philosophy of small hotels and great experiences, Kerr said SLH hotels have an average of 50 rooms because the smaller size can help offer better-personalized services.

He added SLH also offers a balanced variety of downtown hotels, resorts, and rural villas.

To meet Chinese travelers' demand, the company launched a Chinese-language website to facilitate bookings.

Starwood Hotels and Resorts Worldwide is attracting travelers with its mobile innovation.

Last August, the company launched an app marketed for Chinese travelers. Since then, it is seeing fast growing mobile bookings in China.

There were more than 1 million mobile bookings in 2012, more than three times the number in 2011, said Chris Austin, vice-president of global retail leisure & luxury sales at Starwood, in a speech at the ILTM Asia 2013.

"We have also seen triple-digit revenue increase for Chinese mobile hotel booking in 2012," Austin said.

According to the Chinese Luxury Traveler 2013, overseas travelers stayed an average of five nights in hotels. Insensitive to prices, what they consider most are locations, brands and services when choosing hotels.

The report shows Chinese travelers' favorite hotels were Shangri-La, Hilton and Peninsula in 2012.

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