According to Worldbank, there were 143 million outbound travelers from China in 2017. That same year, the U.S. had 87 million outbound travelers. Here’s what marketing adviser Martin Soler, managing partner of Soler & Associates, thinks about the potential for companies that can capture a piece of that market:
“In terms of global tourism spend, China leads the way with an estimated spending of US$250 billion per year for travel. The U.S. comes second with US$135 billion. But China is already spending almost twice as much as Americans are for travel. What is even more staggering is the imminent growth from the Chinese market. In 2016, only 8.7% of Chinese nationals had an international travel passport. That compares with 42% for the U.S. With only a tiny fraction of the population able to travel abroad, China is already traveling and spending nearly twice as much as the largest market — the U.S.
And yet very few hotels are adequately equipped to receive Chinese travelers. Not to mention going out and getting them.
As the Chinese economy grows and wages increase, millions more will have access to the disposable income they need to start seeing the world. And suddenly we realize how unprepared we are as an industry for the largest tourism market to arrive in our hotels.
Can you accept Alipay and WeChat Pay in your hotel? Do you remember the last time you took a cab in another country and the driver didn’t accept credit cards? That’s probably how annoyed Chinese guests are that they can’t just pay with their phone. And the check-in procedure, having to put a credit card “just in case” or pre-pay the stay? Both equal an ultimate sign of distrust for the Chinese traveler.
Is your hotel being distributed through the multitude of booking and travel platforms in China? Chances are this is not the case, or it is managed through a chain level agreement on which you have little to no control.
Historically, first movers tend to keep a pretty good part of the pie. If you want to get an edge on your competition, the Chinese market should be on the top of your list. The good news is that like everyone else, as they discover your city, they’ll need a great place to sleep.”
