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In travel, India and China are markets you can’t afford to ignore. Two high-profile representatives from each country make a strong case for why.

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China’s travel sector is making a strong comeback, following a challenging period during the pandemic.

By the end of this year, outbound trips are expected to reach 130 million, closing in on pre-Covid levels. Meanwhile, Trip.com Group reports that its platform’s outbound hotel and air ticket bookings have surpassed 2019 numbers.

“Chinese travelers are back,” said Jane Sun, CEO of Trip.com Group, emphasizing that China’s outbound market is on track to become one of the largest again.

In 2019, Chinese travelers made 155 million trips, contributing around $255 billion to global tourism. While the pandemic initially stalled this momentum, the market is rebounding swiftly, according to Sun.

Sun was speaking at the World Travel and Tourism Council’s Global Summit in Perth along with Puneet Chhatwal, managing director and CEO of Taj-parent Indian Hotels Company (IHCL). Sun and Chhatwal offered insights into the dynamics of India and China as part of the “Markets to Watch” panel.

The tourism world is watching two markets closely — India and China. With both countries representing vast populations, rising incomes, and an increasing appetite for travel, they are transforming the global tourism landscape. As China regains its position as a leading outbound travel market and India sees a surge in young, aspirational travelers, the potential is immense.

The Three E’s: A Shift in Chinese Travel Preferences

Sun outlined three emerging trends among Chinese travelers, which she termed the “Three Es”:

  • Entertainment-Driven Travel: This segment is experiencing significant growth, with events like Taylor Swift’s concert in Singapore leading to a 400% surge in accommodation bookings. Destinations like Singapore, Thailand, and Hong Kong are capitalizing on this trend by promoting entertainment experiences.
  • Eco-Friendly Travel: Chinese travelers are becoming more conscious of sustainable options, opting for low-carbon alternatives and seeking out emerging destinations. For instance, orders for electric vehicles have doubled on Trip.com’s platform, and many travelers are choosing rail journeys over flights for domestic trips.
  • Elderly-Friendly Travel: The senior demographic, particularly those in their 50s and 60s, has emerged as a powerful segment. This group has both time and money. Sun said that over 100 million Chinese senior travelers will spend over RMB 1 trillion ($142 million) on travel by 2025.

Challenges for Chinese Tourism

While opportunities are abundant, challenges remain. The first hurdle is visa access. “Visa-free travel has helped destinations like Singapore and Thailand see 200% growth over 2019 levels,” Sun highlighted, emphasizing the importance of simplifying visa processes to attract last-minute Chinese travelers.

Outbound visitors from China often have very short booking windows. More than 50% of Trip.com’s customers make domestic hotel reservations on the day that they check in, and 50% of customers make flight reservations the day before they fly with Trip.com, Sun said.

She further noted Middle Eastern countries like the UAE and Qatar, with eased visa processes, have seen growth surge by up to 300% compared to 2019 levels. Sun encouraged destinations to collaborate with the government to expedite visa-free policies, or even extend five- or ten-year visa options. “This would ensure that when travelers are making last-minute decisions, these destinations stand out,” she said.

Sun also cited that China itself is welcoming more foreign arrivals into the country through its visa-free policies. “Travel from the rest of the world into China has achieved three-digit growth,” she said.

The availability of direct flights is another issue. Although outbound flight capacity has recovered to 80% of 2019 levels, direct connections remain crucial for attracting long-haul travelers. Trip.com continues to push for more partnerships with airlines to increase direct flight availability.

Lastly, service quality is key for retaining Chinese travelers. They expect high service standards, including a preference for mobile payments and 4.8-star hotel reviews. This makes it imperative for global partners to adapt to these expectations to win over the Chinese market.

India’s Rise: A Growing Source Market with an Appetite for Travel

India, too, is stepping onto the global tourism stage with gusto. Favorable demographics — 67% of the population is between 15 and 60 years old — and a growing middle class are driving demand for travel, said Chhatwal.

He noted that India’s post-pandemic travel boom is particularly pronounced among young, experience-driven travelers. Unlike previous generations, these travelers focus on living in the moment, spending more on experiences like concerts and international trips.

A striking example of this is the overwhelming demand for tickets to the recent Coldplay concert in Mumbai, where tickets sold out within seconds. The event also highlights the evolving spending patterns of Indian travelers. Chhatwal said India’s outbound tourism is expected to reach $18 billion in 2024, growing at an annual rate of 11% to hit $55 billion over the next decade.

Preferences and Spending Habits

Indian travelers are some of the highest spenders globally, averaging $1,200 per international trip —significantly higher than many markets. The majority of Indian tourists prefer nearby destinations, with Dubai, Thailand, Indonesia, and Vietnam being top choices.

“Indian tourists are among the highest spenders, averaging $75 to $200 per night,” Chhatwal mentioned, highlighting their growing influence in the market.

The U.S. has also become a major draw, with nearly one million Indian visitors arriving between January and May 2024, placing India as the second-largest source market for travel to the U.S. after the U.K.

Sustainability is also gaining traction among Indian visitors, with a surge in interest in wellness and eco-tourism. There is a noticeable shift toward personalized, immersive experiences, such as cultural and culinary tours that focus on heritage and local culture, Chhatwal added.

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Tags: asia monthly, china outbound, coldplay, india outbound, taj hotels, taylor swift, trip, trip.com, trip.com group, visas, wttc

Photo credit: The tourism world is watching India and China closely. jcomp / Freepik

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