Nielsen survey: Ignore China’s big spenders at your peril

HONG KONG – A new survey has warned that Chinese consumers are becoming increasingly sophisticated and the travel industry needs to monitor changes and trends in their travel preferences, attitudes and perceptions towards various destinations,”

A report released by The Nielsen Company -The Nielsen China Outbound Travel Monitor 2007 – found more than one third of Chinese outbound travellers choose to stay in four-star hotels, with a further 10 percent opting for five-star luxury accommodation when heading overseas.

Dr. Grace Pan, Nielsen China head of Travel & Leisure Research, said, “While Chinese travellers appear to seek comfort, they are also becoming wise and well-prepared as they plan their trips, leveraging all the information available to them on the Internet.”

The report focussed on the key cities of Beijing, Shanghai and Guangzhou.

The Nielsen Travel Monitor highlights Chinese travellers’ behaviour, attitudes and opinions towards various destinations, and provides insight into decision making processes, information sourcing, booking choices, accommodation and more – across both leisure and business travel.

Findings of a further 23 cities throughout China will be released in early 2008. The Nielsen research study has been conducted in partnership with PATA.

According to Nielsen, Chinese outbound travellers spent an average close to US$3,000 per trip per person (including expenses prior to the trip, such as prepaid packages, airfares and accommodation).

Travellers to Europe were the biggest spenders, splashing out an average US$5,253 per trip, while travellers to Asia outlaid US$1,904 a head, with the exception of those headed to Hong Kong and Macau, where the average spend was US$2,185, reflecting these destinations’ status as shopping and entertainment meccas.

“Asia remains the most popular destination for Chinese travellers because of the region’s proximity; however, trips to Europe and America are increasing rapidly in numbers, particularly when it comes to business travels,” said Dr Pan.

“We also found that while mass market travellers focus on budget travel, there is a fast-emerging affluent market segment prepared to indulge themselves in luxury travel.”

Nielsen said that with China now supplying millions of visitors to overseas destinations, operators in destination countries would need to shape their strategies accordingly, “to cater to this unique and high potential group of customers, and benefit from the growing opportunities presented by Chinese tourists”.