SINGAPORE, 28 January 2025: Take your pick. Dragon Trail International’s latest Sentiments Report says 22% of Chinese travel agents interviewed reckoned China’s outbound travel market would make a full recovery during the first half of 2025, 35% hazarded a guess it would be during the second half, and another 22% thought it was more likely to be back at pace in 2026.
It is not very reassuring if your business relies on Chinese travellers boarding flights in their millions, as was the case in pre-Covid 2019. But the good news is that just 10% of the agents thought recovery was hiding around the corner in 2027.
Dragon Trail International’s Chinese Outbound Travel Trade Survey, which sought the views of 465 travel agents currently selling outbound travel for mainland Chinese travel agencies, was officially released earlier this month and is available on its website.
Click here to view and download the full report, Chinese Outbound Travel Trade Survey
Dragon Trail International’s researchers opted for the more optimistic outlook, saying the outbound market was “full of promise and potential for new developments. From those who know it best, this optimism about China’s outbound tourism market bodes well for the upcoming Chinese New Year holiday from the end of January 2025, and the rest of the Year of the Snake.”
Key insights from the report
On the threshold of recovery: More than half of Chinese travel agents think the outbound market will fully recover by the end of 2025. Survey data shows a positive outlook on the Chinese outbound travel market. 66% of survey respondents expect the market to have returned to pre-pandemic levels by the end of 2025. However, the anticipated recovery varies by world region, with Asia (excluding the Middle East) expected to see the quickest recovery, followed by Europe.
Optimism about the economy: Chinese travel agents are optimistic about the economy and consumers’ buying power but also looking for the best price
China’s economic environment and consumer confidence are seen by the majority (71% and 68%, respectively) of travel agents as factors that will positively impact the outbound travel market in 2025.
Young travellers turn to cruises and luxury travel: 43% of travel agents say that the post-00s generation is already part of their core customer demographic, and post-00s and post-90s stand out as the main cohort for island travel. Young travellers also make up a key subset of the luxury travel market and are even increasingly interested in cruises.
Silver generation on big pensions: The silver travel market shows high potential, but special considerations come into play when designing tour products. China’s silver travel market is rapidly growing and rich in untapped potential. Retired and soon-to-retire luxury travellers with large pensions are less price-sensitive than other market segments and seek high-quality travel experiences. However, suppliers must consider key factors such as safety and comfort when catering to this market.
Luxury travel is a diverse market: China’s luxury travel market is not a monolith. According to travel agents, it comprises three distinct demographic groups based on age and background, and each is looking for different kinds of services and experiences.
New sales channels offer the best conversions: Nearly half of the survey respondents have embraced new social media platforms, Douyin and Xiaohongshu, for travel sales and conversion rates are above average. Selling directly via WeChat and at offline events is also particularly effective.
Chinese-language services are a must: Whether a hotel can offer Chinese-language services is one of the top factors Chinese travel agents consider when choosing partners to work with. Chinese-language services and Chinese catering are both in demand for travel products.
(Source: The Chinese Outbound Travel Trade Survey: January 2025 published by Dragon Trail Research (a division of Dragon Trail International).
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