China outbound surges by almost 400% in 2024 – WiT

According to a new report by Sabre, China’s outbound travel market is experiencing a resurgence, with a nearly 400% increase in bookings for 2024 compared to the previous year. The study utilises data from Sabre Market Intelligence MIDT, Sabre Market Intelligence Ticketing, OAG Air Capacity and Sabre Market Intelligence Global Demand.

For context, pre-pandemic, travellers from China made 155 million international trips, collectively spending to the tune of $245 billion, it’s quite obvious why the world has been waiting for China to re-enter the global tourism market in a big way. 

Chinese travellers are also renowned for being high spenders when they travel, spending an average of $1,000 a day during their trips. During the nine years up to 2023, disposable income per capita roughly doubled in China, potentially meaning more money to spend on travel. 

Key findings

• Overall surge: Outbound travel from mainland China has increased by 392% globally for 2024, with some destinations experiencing over 2,000% growth.
• Visa-free travel: Chinese travelers are leveraging reciprocal visa-free agreements, broadening their travel choices.
• Affordable airfare: Airfare prices have dropped significantly, making travel more accessible for Chinese tourists.
• Popular destinations: The fastest-growing routes for Chinese travelers include Macao, Australia, Japan, Russia, and Bangladesh.
• Premium travel: Business Class travel is almost back to pre-pandemic levels, and Premium Economy travel is rising.
• Airline capacity: Some routes have seen a more than 3000% increase in outbound airline capacity to meet the heightened demand.

Regional insights

Asia Pacific (APAC):

• Bookings for travel to APAC countries during peak travel dates, such as the Chinese New Year, reached 106% of 2019 levels.
• October bookings, coinciding with the Golden Week holiday, increased by 1347% year-on-year.

Europe and the Middle East (EMEA):

• Outbound travel to EMEA peaked in January with a 676% increase compared to the previous year.
• Significant year-on-year booking increases are projected for December 2024, with more than 2000% growth.

Americas:

• North American travel saw a 336% increase in the first quarter, second only to APAC.
• Latin American destinations are also recording higher booking volumes, especially in the last quarter of 2024.

Destination trends

Sabre’s report highlights that while traditional favorites remain popular, new destinations are emerging. Australia and Malaysia have entered the top 10 destinations for Chinese travellers, with Australia moving up seven places and Malaysia making a leap upwards from 18th to ninth. 

Notable increases were also seen in Macao, Britain, Kazakhstan, and Bangladesh, highlighting diverse travel preferences among Chinese tourists.

The report also gathered that recent visa-free agreements have significantly influenced travel patterns. For instance, Singapore saw a 466% increase in inbound bookings from China, while Malaysia recorded a 651% increase in travel from China. Russia experienced a 758% increase in Chinese tourists, reflecting the benefits of these agreements.

There is also a 15-day visa free entry scheme for citizens from Switzerland and Ireland.  

Sabre points out that airlines have responded to the surge in demand by increasing capacity. For example, Beijing, Shenzhen, and Chengdu saw outbound capacity increases of 400%, 560%, and 3200%, respectively. Inbound capacities for these hubs also rose significantly. Concurrently, airfare prices have decreased, with some routes seeing up to a 73% reduction, making travel more affordable.

Despite lower fare prices, many Chinese travellers are opting for higher travel classes. Sabre’s report indicates that Business Class travel is just fractionally below 2019 in terms of percentage of travel booked, at 3.6% for 2024, compared to 3.7% for 2019. While first class travel is down by 0.4%, premium economy travel is up by 0.8%, indicating opportunities for airlines and agencies to cater to passengers who want to upgrade their usual experience.  

Sabre’s data emphasises that 2024 marks a significant return of Chinese travellers to the global tourism scene. With only about 13% of Chinese citizens holding passports, there is substantial potential for growth. The travel industry must focus on understanding and catering to the preferences of Chinese tourists to capture their spending power effectively.