Research on Chinese Luxury Outbound Tourism

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Research of China Luxury Outbound Travel Market

Tianyi Zhao
10/28/12

Table of Contetns
1 Abstract
2 Market Overview
3.1 Market Size
3.2 Market Value
3.3 Market Growth
3 Demand Analysis
4.4 Demographics
4.5.1.1 Population
4.5.1.2 Geographic Distribution
4.5.1.3 Gender
4.5 Traveler Profile
4.6.1.4 Trip Frequency and Length
4.6.1.5 Trip Purpose and Period
4.6.1.6 Travel Spending
4.6.1.7 Planning Preference
4 Supply Analysis
5.6 Overview
5.7 Company Introduction
5.8 Product
5.9 Marketing
5.10 Price
5 Conclusion
6.11 Overview
6.12 Recommendations
6.13.1.8 Initial Stage
6.13.1.9 Growing Stage
6.13.1.10 Mature Stage

Abstract
The project presents an independent research on the Chinese high-end outbound travel market. Reviewing the development of China’s Luxury outbound tourism, the article starts with an investigation of the gross market features highlighting market size and segmentation. Elaborate breakdown of both the demand-side and the supply-side of the market follow, which provides quantified insights into the widening gap between escalating demand and slack supply of luxury travel for Chinese high-end outbound travelers. Subsequently, it will talk about the regulatory complications including visa service and government restrictions. In the end, some opportunities are identified and specific recommendations are proposed to the market as conclusion.

Market Overview
2.1 Market Size
In 2011, the total value of Chinese outbound travel market reaches 763 billion RMB (approx. 121.1 billion U.S Dollars) with 20.4 increase rate. There are 78.4 million Chinese made their outbound trip in 2011, but only one third Of those trips (approx. 23.7 millions) has a destination other than Hong Kong and Macau (Chinese’s territory but political recognized as international autonomous regions). Thus, in order to censor the whole outbound market more strictly and efficiently, we would like to exclude both Hong Kong and Macau because their special geographical and political characteristics and focus solely on the Long-Haul Outbound Travel market. In fact, the long-haul outbound trips did account for 83.2 % of Chinese outbound travel market value in the fast five years. In addition, the trips towards U.S and Europe also occupied the same portion of 76.5% long-haul outbound market share.

* Note: Long-Haul travel market exclude Honking and Macau. 2.2 Market Value
In 2011, the total market value of Chinese tourists for U.S outbound market amounts to be 57.43 billion U.S. Dollars. As Chinese travelers spend $ 7200 dollars in average in the U.S, luxury Chinese outbound travelers spend at least $ 23,200 dollars per trip. Therefore, the high-end clients accounts for 43.4% of the U.S outbound market value. And it accounts for 6.35% of the value of the whole Chinese long-haul outbound travel Market. In fact, the portion of luxury outbound travel accounts even more in other new discovery market like East Africa, Arctic and Dubai since all those destinations cost much more in average and rank lower on the Chinese’s travel-wish list. 2.3 Market Growth

According to the Boston Consulting Group’s Forecasts, the size and value of Chinese outbound travel market will continue its amazing growth rate by 18.83% until reaching the climax of 101 million tourists and 1544 billion RMB in 2020 respectively. Besides, based on the data from U.S Commerce Department, the number of tourists from China will also grows by 232% from 2010 to 2015 with 27.12% increase rate. And the growth of the outbound luxury travel market will also follow the booming trend. With the moderate estimation of Chinese affluent population growth rate of 7.2%, their annual travel spending will also increases heavily with no doubt....
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