Trip.com exec: Optimistic "regular" China outbound will resume by mid-2024
At the Envision 2023 Global conference hosted last week by #1 PRC online travel agency Trip.com Group, Trip.com Flight Business Group CEO Tan Yudong said that he is optimistic that "regular" outbound travel will resume by mid-2024.
Other high points of the conference include:
- Trip.com Group revenue was up 180% in 2Q2023 vs. 2Q2021.
- In 1H2023, PRC flight capacity exceeded 2019 level by 12%, air ticket search volume by 20%.
- But a large backlog of visa applications continues to constrain outbound trave from PRC.
- And Asian destinations like Southeast Asia, Japan and South Korea are expected to benefit first from the growth in PRC outbound travel.
- Outbound travel from PRC is being driven by younger generations who are seeking unique destinations and experiences and tend to buy high-end travel products like business-class flights and 5-star hotels.
- Chinese tourists spend the most on shopping, averaging $1350 per person.
- APAC duty-free sales - with the lion's share accounted for by Chinese tourists - are expected to reach $81B by 2027.
However: Independent surveys found that as of summer 2023 fewer than 20% of Chinese planning to travel abroad in the next 12 months will be going to North America, Eastern Europe or the Middle East.
And the US NTTO estimates that the US will receive 849,000 visitors from China this year - about 30% of 2019 levels.
