How will the Chinese New Year affect International Travel?
Findings from travel intelligence company ForwardKeys projects international travel during the 2017 Chinese New Year to surpass 2016. Looking at flight reservation transactions during the 2017 Chinese New Year period and comparing it Y.o.Y, ForwardKeys determined a 9.8% increase in bookings from China.
United States, Canada and Asia
U.S. and Canada bookings are up only 3.3% from last year but still claim the fourth largest share of Chinese bookings for the new year holiday (10%).
Northeast and Southeast Asia still account for the highest share of travelers (39 and 28 percent), but dropped by almost 2% since 2016. They are the only other region other than Oceania (dropped by 1.1%) to see a decline in numbers.
Europe will see the biggest growth in Chinese tourism.
- ForwardKeys’ growth rankings saw a 68.5% growth in Chinese New Year travel to Europe Y.o.Y.
- Western Europe, the target for most terror attacks saw a 42% growth record
- Destinations least associated with terrorism saw the highest growth rates
- 101% in Central and Eastern Europe, 100% in the Nordics, and 69% in Southern Europe
In spite of terror attacks across Europe deterring Chinese travellers in 2016, it appears that Europe has been quick to recover.
How Does International Travel Affect Brands?
Luxury and Retail
A survey by Hong Kong-based investment bank CLSA states: “Chinese tourists put Australia at 15th as a shopping destination in 2016, up four places from 19th only a year prior.”
“While the tourists won’t get near December’s total local retail spend of $24.8 billion”, writes Chris Pash (referring to December 2015), “the numbers are significant and Chinese New Year is becoming important, especially for top end luxury retailers.
“It’s Christmas in February,” says Mary Poulakis, marketing director at luxury fashion store Harrolds. “It’s our second bite of the Christmas/New Year cherry and we certainly focus on it a lot in our stores.”
Travel and Lodging
Thanks to the increased amount of tourists during the CNY period, travel and lodging businesses will benefit greatly.
The Boston Consulting Group predicts the following by 2020: The market value of leisure trips is expected to quadruple. The demand for domestic accommodations will double. The amount of arrivals in Europe from China will quadruple. Also, 25% of all tourists arriving in Japan and South Korea will be from China.
Five things to take away from ‘International Travel Breaks Chinese New Year Records‘
- Bookings for Chinese international travel increased by 9.8% Y.o.Y in 2017.
- U.S. and Canada bookings are up 3.3% and account for 10% of bookings.
- Northeast and Southeast Asia account for the highest share of travelers (39 and 28 percent), but dropped by almost 2% since 2016.
- Europe has the largest growth in Chinese tourism, with a 68.5% increase since 2016.
- “It’s Christmas in February,” says Mary Poulakis, marketing director at Harrolds. “It’s our second bite of the Christmas/New Year cherry…”