Table of Contents
Executive Summary
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- The market
- Consumers are returning although market has seen significant drop in travellers
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- Figure 1: Domestic travellers at key holiday times in China, 2019-2020
- Holiday spending recovery calls for more time because of changed priority
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- Figure 2: Consumer spending changes on holidays – have spent more, April 2020 - Jan 2021
- Further recovery depends on how COVID-19 is controlled
- The consumer
- Market recovery still fuelled by short-haul trips
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- Figure 3: Travel participation, December 2020
- Increasing popularity of vacation rentals boosted by low-to-mid income consumers
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- Figure 4: Accommodation usage for leisure travel, December 2020
- Premium hotels capture consumers through nonprice factors, while vacation rentals stand out for competitive pricing
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- Figure 5: Reasons for choosing specific accommodation for leisure travel, December 2020
- Females aged 30-39 allocate the most budget for leisure travel
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- Figure 6: Budget for future leisure travel, December 2020
- Wise balance between quality and price
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- Figure 7: Important factors for travel product purchase, December 2020
- Traditional OTA channels are suitable for promoting premium products
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- Figure 8: Perception of various sales channels – correspondence analysis, December 2020
- What we think
Issues and Insights
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- Applying holiday trends to target Gen-Z travellers
- The facts
- The implications
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- Figure 9: Most important factors when selecting a job among Gen-Zers, December 2020
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- Figure 10: Marriott International presents Moxy hotel to Chinese consumers, 2021
- Figure 11: Atour Hotel introduces e-sport-themed hotels to young people, 2021
- Connect with high-budget family consumers with activities inspired by responsible consumption
- The facts
- The implications
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- Figure 12: Marriott International launch activities inspired by ethical behaviours in the China market, 2021
- Nature is the theme to drive local leisure life
- The facts
- The implications
The Market – What You Need to Know
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- Recovery slowly in progress, although total volume experienced a sharp decline
- Spending recovery will take even longer time
- Alertness remains until COVID-19 is fully contained
Market Overview
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- Traveller volume at key holiday times suggests consumers returning
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- Figure 13: Travellers at key holiday times in China, 2019-2020
- Spending recovery needs more time
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- Figure 14: Consumer spending changes on holidays – have spent more, April 2020 - Jan 2021
- Spending trade-off skews towards long-term needs
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- Figure 15: Spending priorities, 2019-2020
- Market and consumers still alert to COVID-19 uncertainties
The Consumer – What You Need to Know
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- Domestic recovery driven by short-haul travel
- Low-to-mid income consumers fuelled popularity of vacation rentals
- Premium hotels’ usage is motivated by professionalism and protection
- Price has become more important to Gen-Zers
- High-budget consumers prioritise quality holiday products
Travel Participation
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- Short-haul leisure travel continues to lead the recovery
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- Figure 16: Travel participation, December 2020
- More confident to travel across provinces
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- Figure 17: Participation in various travel type combinations, August versus December 2020
- Families with children are the key long-haul travellers
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- Figure 18: Participation in long-haul leisure trips across provinces*, by demographic, December 2020
Travel Accommodation Usage
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- Mid-scale hotels remain popular in leisure travel, while resorts are the emerging star
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- Figure 19: Accommodation usage for leisure travel, December 2020
- Vacation rentals’ usage bumped up by low-to-mid income consumers
- Vacation rentals extend from young families to include older generations
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- Figure 20: Selected accommodation usage for family travel, 2018 vs 2020
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- Figure 21: Usage of vacation rentals (a) for family travel, by demographic, 2018 vs 2020
- Gen-Zers with low-to-mid income fuelled usage of vacation rentals for solo trips and travelling with friends
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- Figure 22: Selected accommodation usage for travelling with friends, 2018 vs 2020
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- Figure 23: Vacation rentals’ (a) usage for travelling with friends, by demographic, 2018 vs 2020
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- Figure 24: Selected accommodation usage for travel alone, 2018 vs 2020
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- Figure 25: Vacation rental (a) usage for travelling alone, by demographic, 2018 vs 2020
- Business travellers prefer budget accommodation more than before
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- Figure 26: Accommodation for business travel, 2018 vs 2020
Reasons for Choosing Specific Leisure Accommodation
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- Consumer protection is competition moat for premium hotels
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- Figure 27: Reasons for choosing specific accommodation for leisure travel, December 2020
- Hygiene protects appeal to high income families
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- Figure 28: Reasons for choosing premium hotels (a) – professional hygiene protection measures, by demographic, December 2020
- Privacy protection links premium hotels to young people
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- Figure 29: Reasons for choosing premium hotels (a) – protecting privacy, by demographic, December 2020
- Sustainability for high-income families with children
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- Figure 30: Reasons for choosing specific accommodation – Adopting environmental protection measures (a), by demographic, December 2020
- Gen-Zers emphasise good-value deals for vacation rentals more than before
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- Figure 31: Gen-Zers’ association with vacation rentals (a), 2018 vs 2020
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- Figure 32: Associate vacation rentals (a) with good value for money, by age, 2018 vs 2020
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- Figure 33: Attitudes towards travel spending, by age, May 2020
Budget for Future Leisure Travel
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- Females in their 30s willing to allocate the biggest budgets
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- Figure 34: Budget for future leisure travel, December 2020
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- Figure 35: Average budget for future leisure travel, by age and gender, December 2020
- High-budget consumers are potential long-haul travellers using premium accommodation
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- Figure 36: Domestic travel participation between February and December 2020, by future travel budget, December 2020
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- Figure 37: Accommodation usage for leisure travel, by future travel budget, December 2020
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- Figure 38: Motivations for using premium hotels* for leisure travel, by future travel budget, December 2020
Important Factors for Travel Product Purchase
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- A wise balance between quality and price
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- Figure 39: Important factors for travel product purchase, December 2020
- Young people more encouraged by price
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- Figure 40: Important factors for travel product purchase among Gen-Zers, December 2020
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- Figure 41: Important factors for travel product purchase – competitive price, by age, December 2020
- Figure 42: Competitive price as top consideration factor among Gen-Zers, by city tier, December 2020
- High budget consumers: judge quality by brand fame and motivated by ethical behaviours
- They are less price-sensitive
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- Figure 43: Important factors for travel product purchase – price and luxurious experience, by future travel budget, December 2020
- Adopt multiple quality indicators
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- Figure 44: Important factors for travel product purchase – quality reassurance, by future travel budget, December 2020
- Ethical values more considered in purchasing decision
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- Figure 45: Important factors for travel product purchase – ethical values, by future travel budget, December 2020
- Sustainability appeals to families with children
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- Figure 46: Important factors for travel product purchase – protecting environment (a), by family structure, December 2020
Perception of Various Sales Channels
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- Traditional OTA channels more suitable for promoting premium products
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- Figure 47: Perception of various sales channels – correspondence analysis, December 2020
- Not yet a platform to satisfy young people who want fun and novelty at affordable prices
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- Figure 48: Perception of various sales channels among Gen-Zers, December 2020
Meet the Mintropolitans
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- Higher participation in domestic leisure long-haul travel
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- Figure 49: Domestic leisure travel participation between February and December 2020, by consumer classification, December 2020
- Allocating significantly higher budget for travel
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- Figure 50: Leisure travel budget for the next 6 months, by consumer classification, December 2020
- Ethical values matter more
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- Figure 51: Important factors for travel product purchase, by consumer classification, December 2020
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- Figure 52: Reasons for using upscale or luxury hotels for leisure travel – sustainability, by consumer classification, December 2020
Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
Appendix – Other Consumer Data
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- Travel Accommodation Usage
- Vacation rentals extend from young families to include older generations
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- Figure 53: Usage of vacation rentals (a) for family travel, by demographic, 2018 vs 2020
- Budget for leisure travel
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- Figure 54: Average budget for Leisure travel, December 2020
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