Chinese Travelers Increase While Europeans Stay Home, New Data Shows
According to new data, the number of Chinese travelers is increasing while more Europeans are choosing to stay home. This shift in travel trends could signal the end of the era of “revenge travel” that was seen in recent years.
A recent report by research company Morning Consult revealed that travel intentions are on the rise in several countries, but are either flatlining or falling in others, particularly in Europe. The report showed an 11 percentage point drop in travel intentions in France and a six-point drop in Germany since 2022.
The decline in travel interest is not limited to Europe, as intentions to travel also fell by four percentage points each in Canada and Russia, according to the survey.
Lindsey Roeschke, a travel and hospitality analyst at Morning Consult, stated that this data suggests that pent-up demand for travel is starting to fade. She mentioned that while travel may not significantly decline, it appears that the majority of people who were waiting to take their “revenge trips” have already done so.
Roeschke attributed the slowdown in travel, particularly in Europe, to economic factors such as inflation, which has eaten away at consumers’ savings and caused them to reprioritize their spending. Additionally, an influx of North American tourists over the summer has driven prices higher, making travel even more expensive for Europeans.
However, it was expected that pent-up demand would have a stronger presence in the Asia-Pacific region, where Covid border restrictions were kept in place for a longer period of time. A new report by Oxford Economics suggests that short-haul “revenge travel” is also likely to fade in Asia-Pacific. The report states that while pent-up demand fueled travel in the first half of 2023, the trend is now starting to reverse.
The reports also noted that arrivals from other parts of the world, particularly the United States and Europe, are likely to decline as tightening monetary policies begin to impact travelers’ budgets.
While Chinese tourists initially showed a strong desire to travel internationally, they are now starting to lose interest. The Oxford Economics report mentioned factors such as high unemployment, negative wealth effects from the troubled property sector, and weak wage growth that are affecting Chinese consumers’ desire to spend on foreign holidays.
Most Chinese tourists are now traveling within China and its special autonomous regions of Hong Kong and Macao. This shift in travel preferences within China may have a lasting impact and could lead to a decline in international trips among these tourists.
Overall, the boost in travel from pent-up demand is expected to dwindle in the near future. Consumers in advanced economies, especially the US, may reduce their spending plans due to economic uncertainty. The tourism industry remains optimistic, however, with 77% of hotel owners and operators in Asia-Pacific anticipating a rise in occupancy levels in 2024, according to a recent survey by JLL.