Travel & Tourism - China

China

The Travel & Tourism market is expected to experience a significant rise in revenue in the upcoming years in China.
According to projections, the market revenue is estimated to reach US$154.50bn by 2024 and grow annually at a rate of 3.30%, thereby resulting in a market volume of US$181.70bn by 2029.
The largest market is the Hotels market, which is expected to have a market volume of US$81.33bn in 2024.
The number of users in this market is predicted to reach 515.00m users by 2029, and the user penetration rate is anticipated to rise from 28.5% in 2024 to 43.1% by 2029.
Moreover, the average revenue per user (ARPU) is estimated to be US$378.00.
In terms of online sales, it is projected that 73% of total revenue in the Travel & Tourism market will be generated through online channels by 2029.
Notably, United States is expected to generate the highest revenue in the global comparison, with a projected revenue of US$214bn in 2024.
The rise of China's middle class has led to a rise in domestic tourism and an increasing demand for luxury travel experiences.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Region

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Analyst Opinion

China's Travel & Tourism market has been experiencing significant growth and development in recent years.

Customer preferences: Chinese travelers are increasingly seeking unique and authentic experiences, moving away from traditional tour packages towards more personalized and immersive travel options. The rise of social media and influencer marketing has also influenced customer preferences, with travelers looking for Instagram-worthy destinations and experiences to share online.

Trends in the market: One notable trend in the Chinese Travel & Tourism market is the increasing popularity of domestic travel. With rising incomes and improved infrastructure, more Chinese citizens are exploring their own country, leading to a boost in domestic tourism. Additionally, there has been a growing interest in sustainable and eco-friendly travel practices among Chinese travelers, driving the demand for green initiatives in the tourism sector.

Local special circumstances: China's vast size and diverse landscapes offer a wide range of travel opportunities, from bustling metropolises to scenic rural areas. The country's rich history and cultural heritage also attract both domestic and international tourists, with iconic landmarks such as the Great Wall and the Terracotta Army drawing millions of visitors each year. Moreover, the Chinese government's initiatives to promote tourism, such as visa facilitation and investment in tourism infrastructure, have further fueled the growth of the industry.

Underlying macroeconomic factors: The steady economic growth in China has resulted in a burgeoning middle class with higher disposable incomes, leading to an increase in leisure travel. Furthermore, the government's efforts to boost consumer spending and promote tourism as a key driver of economic growth have supported the expansion of the Travel & Tourism market in the country. Additionally, the Belt and Road Initiative has enhanced connectivity with other countries, facilitating international travel and tourism exchanges.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.