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Skift
a day ago
- Business
- Skift
Chinese Outbound Travel, Travel Innovations, Agentic AI and Airlines: Ask Skift's Most Popular Questions
We sum up the answers to some of Ask Skift's most popular questions, including trends in Chinese outbound travel and recent innovations in travel apps and platforms. Here are three of the most common questions our answer engine Ask Skift 2.0 has fielded recently and a brief summary of the responses it gave. How is Chinese Outbound Travel Evolving in 2025? A growing percentage of Chinese travelers are going abroad for the first time. China Trading Desk's second-quarter survey revealed that 44% of Chinese travelers are making their first international trips, up six percentage points from the previous quarter. Chinese travelers are also, in general, finalizing their travel decisions closer to departure time. A survey by China Trading Desk in April found roughly 77% of bookings made by Chinese travelers are within one month of the trip and 46% are within two weeks. In addition, booking trends reveal a growing diversification in outbound travel preferences. Although locations such as Singapore, Japan, and South Korea remain the most popular outbound destinations for Chinese travelers, Skift reported in April that data from online travel platform Fliggy revealed a year-over-year doubling of booking volumes to Iceland, Morocco, Norway, and Georgia. What Are the Latest Innovations in Travel Apps and Platforms? Google rolled out a new "AI Mode" for Search in May, an update that enables users to ask nuanced, multi-part travel questions — such as "Things to do in Nashville this weekend with friends, we're big foodies who like music but also more chill vibes and exploring off the beaten path." Google's AI can also access Gmail and past search data to suggest more personalized travel recommendations and even build itineraries from a traveler's bookings. Skift reported in May that Kayak launched a new AI-powered trip planner called The user can initiate a travel search and save flight and hotel options to book later and share them with others. The chatbot also has access to ChatGPT and its web search function for questions beyond Kayak's flight and hotels. And Apple announced in June that digital passports — which can be used when age and identity verification are required — would be coming to the iPhone's digital Wallet starting this fall. Apple is also integrating live translation into the apps for Messages, FaceTime, and Phone, and the company said AI can generate spoken translation between two people speaking different languages during calls on the Phone app — even if one of those people isn't using an iPhone. What Are the Key Trends Observed in the Adoption of Agentic AI Within the Airline Industry? Agentic AI is increasingly being deployed at the heart of customer-facing tools. Qatar Airways has launched an AI-powered travel agent that assists with booking and trip planning while Delta has unveiled an AI-powered assistant on its app called Delta Concierge that can provide proactive trip planning and passport and visa notifications. United Airlines' Connection Saver AI system automatically provides passengers updates about delays and connections. Skift reported in March that more than half of United's customers who experienced a cancellation in the fourth quarter resolved their issues through the carrier's automated solutions or self-service. Airlines — including Southwest Airlines and Ryanair — have also used AI to automate marketing campaigns and ancillary revenue management, optimizing everything from personalized offers to operational messaging. And IAG is utlizing AI to aumoted the scheduling, maintenance, and reporting for Vueling, one of the airlines it owns.
Skift
25-06-2025
- Business
- Skift
China's Outbound Travel Is Now Being Driven by These Five Categories
Chinese travellers are coming back, albeit differently. The way they plan, what they care about, and what they expect has shifted. And that means destinations, hotels, and retailers need to shift with them. China's outbound tourism is back in full swing, but the real shift is in why people are travelling and how they're deciding where to go, what to book, and what to buy. According to China Trading Desk's second quarter survey, releasing this Wednesday, traditional marketing categories like age and income are no longer the main drivers. Instead, China Trading Desk has developed what it calls the Five Economies Framework, a way to understand what travelers are seeking from their trips: Confidence Economy: First-timers who need clarity and support Value Economy: People spending carefully but still wanting comfort She Economy: Young female Gen Z travelers shaping trends Emotional Economy: Travelers looking for meaning and memories Silver Economy: Older, confident travelers with time and money Source: China Trading Desk First-Timers Want Guidance, Not Guesswork A record 44% of Chinese travelers are going abroad for the first time, up from 38% just last quarter. Many are under 30, and women are especially well represented. These travelers are cautious but curious. While they might be new to international travel, they're far from clueless. These first-time travelers are heavy users of social media platforms, Douyin and Xiaohongshu. They rely on short videos, visual guides, and peer reviews, Subramania Bhatt, CEO of China Trading Desk told Skift. They want simplicity, structure, and reassurance, according to the survey. While first-timers are booking mostly 3- to 4-star hotels, they're also more likely to plan their shopping before booking flights. Travelers Want 'Luxury With Logic' Many Chinese travelers, especially those from Tier 1 cities, are travelling with what Bhatt calls a 'luxury with logic' mindset. They're not throwing money around, but they're willing to spend if the value is clear. 'Gen Z and Tier 1 travelers are selective spenders,' he said. 'They crave value, story, and social capital.' That means flash sales, first-timer bundles, and travel perks that are easy to understand. Limited-time product drops, sustainability labels, and collaborations with Xiaohongshu creators could help brands connect with these travelers, according to Bhatt. Nearly half of all surveyed travelers plan to spend more than 25,000 RMB per trip (not including flights and hotels), and spending on luxury items is growing, especially among Gen Z and Tier 3 travelers. Young Women Are Leading the Shift Young, urban women, many of them Gen Z, are at the forefront of China's outbound travel recovery. According to the survey, they're tech-savvy, often travelling independently, and influenced heavily by social media. They rely on Xiaohongshu not just for travel inspiration but for social proof and tips they can trust. These women aren't passively scrolling; they're comparing, researching, and actively shaping travel trends. Most book less than a month in advance, some within just two weeks, but they start researching much earlier. 'The booking window is short, but the consideration window starts much earlier,' said Bhatt. Travel Is About Meaning While budgets matter, travelers are also seeking emotional returns. Around 22% of survey respondents named food, nature, and culture as equal motivations, showing a preference for rich, meaningful experiences over just sightseeing. These travelers value curated experiences, and small-groups. Bhatt advises travel companies to think less about mass-market tours and more about memory-building activities that help people feel connected. Older Travelers Want Safety and Comfort Older Chinese travelers are travelling more confidently in 2025. They tend to book longer trips, prioritize safety and comfort, and prefer destinations with good health infrastructure and reliable service. China Trading Desk suggests offering accessible travel, bilingual support, guided activities, and wellness packages. This group is less impulsive, as they prefer safety, comfort, and clarity over spontaneity. Same Platforms, Different Needs Though Xiaohongshu, Douyin, and Ctrip are used widely across age groups, their role in the travel journey varies. 'Xiaohongshu builds trust, Douyin drives impulse, and Ctrip closes the sale,' Bhatt said. This platform split helps explain why brands can't take a one-size-fits-all approach. A shopping guide that works on Xiaohongshu may fall flat on Douyin, and vice versa. Singapore, Japan, and Korea Stay on Top While Chinese travelers have changed significantly, the top-visited destinations remain the same: Singapore, Japan, and South Korea. But what keeps them on top isn't just culture or food, it's digital visibility and ease of travel. Source: China Trading Desk 'Their enduring appeal is a mix of perceived safety, travel ease, and constant digital visibility,' said Bhatt. While breaking down the popularity of these destinations, Bhatt said that for instance, Singapore is known for cashless payments, strong airport services, and high compatibility with digital payment services like Alipay. Japan benefits from viral content like '7-Eleven must buys' and cultural dept, while South Korea rides the wave of K-pop, K-drama, and shopping infrastructure. Faster immigration clearance is also on top of the airport services wishlist for Chinese travelers. and Dragon Trail Executives at the Skift Asia Forum
South China Morning Post
14-06-2025
- Business
- South China Morning Post
More Chinese travelling to South Korea as memories of political chaos recede
Chinese tourism to South Korea is picking up with the end of political instability in Seoul and the two nations pledging closer relations shortly before visa exemptions take effect, travel industry sources said this week. Bookings from China – South Korea's largest source of foreign visitors – for the three months from April to June have been about 24 per cent higher than for the three months ending in February, according to data compiled by the travel marketing and technology company China Trading Desk. Bookings from China to South Korea for the three months from April to June have been about 24 per cent higher than for the three months ending in February, according to data compiled by China Trading Desk, a travel marketing and technology company. China is South Korea's largest source of foreign visitors. Chinese bookings rose just 7 per cent year on year in February, making it the slowest-growing month so far this year, the company said. China's annual Lunar New Year outbound travel boom ran from January 28 to February 4 this year. Between December 2 and 9, as the Korean political fracas unfolded, bookings from China to South Korea for January and February fell by 12 per cent, it said.
Mint
10-06-2025
- Business
- Mint
China's Bankers Ditch Global Hotel Chains as Travel Budgets Bite
(Bloomberg) -- These days, Shanghai-based banker Jason Zhang can no longer stay at the Westin hotel in downtown Beijing's financial district after his company cut its travel budget. Instead, he had to settle for a cheaper domestic hotel chain. To his surprise, the discount in room rate didn't lead to a discount in experience. Yes, the expansive breakfast buffet is gone, but Zhang relishes the local dishes served at the domestic chain Atour. Its pillows and comforters are so popular that many guests buy them after checking out. There's no scramble to pack and leave in the morning as checkout can wait until 6 p.m. Zhang is not alone in switching hotels. Chinese banks have scaled back travel perks since last year, barring staff from flying business class and booking pricey hotels, as China's economy slows and companies tighten their purse strings. And while it's making things tough for the top-end international brands, the greater financial prudence has opened up opportunities for smaller local chains that focus on the needs of business travelers. While spending on work-related travel in China slowed in 2024, it still grew to a record $372.5 billion, according to market researcher China Trading Desk. But much of the growth is being captured by hotels offering modest accommodation rather than the luxury end of the spectrum. Mid-range local brands could expand their market share from 45% in 2023 to up to 75% by 2028, the consultancy says. That's giving domestic chains a boost. Atour Lifestyle Holdings Ltd posted record revenue growth of 55.3% to 7.25 billion yuan ($1 billion), thanks in part to sales of its pillows and comforters. Another hotel chain H World Group Ltd saw revenue jump almost 10% year on year. This is in contrast to the major international brands, which are struggling in the Greater China region compared to the rest of the world. InterContinental Hotels Group Plc saw room revenue for business trips in the region decrease 5%, compared with a 2% increase globally. Hilton Worldwide Holdings Inc. says its revenue per room in Asia Pacific was flat, dragged down by China. Marriott International Inc. also saw its Greater China revenue decline, citing weaker domestic demand. 'The primary driver behind this transformation is corporate cost-cutting measures,' said Subramania Bhatt, chief executive officer of China Trading Desk. 'Beyond price, local brands have developed several competitive edges that appeal to business travelers.' While tighter travel budgets are a key reason some are switching hotel brands, it's only part of the story. Local chains unable to match international five-star chains in prestige and glamor are trying to make up in other ways. Yongbin Xu, a director at a private fund management company in Shanghai, used to stay at Marriott or Shangri-La hotels on work trips but has now switched to Intercity, an upper mid-scale brand operated by H World Group. He made the change not because of corporate cutbacks, but because he likes the location and service of Intercity hotels. A room at a Shangri-La or Marriott hotel in Shenzhen costs between 1000 yuan and 1200 yuan per night, while Intercity charges around 700 yuan for a room in the central business district. 'Of course, those hotels sacrifice some services, but for business trips, I don't have time to use the swimming pool or other high-end services,' said Xu. Xu's favorite service at H World: Robots that help ferry food deliveries from the hotel entrance to his room upstairs, whereas international brands ask guests to go all the way down to the entrance to pick them up themselves. Another perk that has won over many local travelers is free laundry, either through self-service washing machines or through a pick-up service. By contrast, it normally costs from 30 to 100 yuan per item for laundry services in the five-star hotels in Beijing and Shanghai. Local chains have also sought to gain an advantage over their larger rivals by the strength of their mobile apps, through which guests can access a broad array of services, such as selecting your own room or requesting more water, without having to speak to reception. While Chinese domestic hotel brands have become more competitive, they also face a number of challenges, including rising operational expenses and cut-throat price competition due to the surge in the supply of rooms in smaller hotels, guesthouses and home-rental apps in the country. By the end of 2024, the number of hotels in China had risen to 348,700, with 17.6 million rooms, both record highs, according to a report by the China Hotel Association. This weighed on the average room rate for both domestic and international brands, which declined between 2% and 7% last year. And prices may face even greater pressure in the coming years as the major chains keep expanding to meet rising demand from Chinese travelers. 'The downward trend in hotel prices and profits will continue this year due to oversupply, increasing the risk of investing in new hotels,' said Zhao Huanyan, a Shanghai-based independent hospitality industry consultant. Despite stronger sales, H World Group saw its profit decline last year due to expenditure on renovation and service upgrades. For Atour, its breakneck expansion appears to have led to a lapse in quality control. The pillow cases at one of its hotels in Hangzhou were found out to be ones meant for a hospital, sparking widespread media and online scrutiny. Atour later explained in a statement that it was a sorting mistake by its laundry supplier and temporarily closed down the location to replace all bed linen. In response to rising local competition, international hotel chains have been expanding their mid-range options in China. Almost 80% of the new hotels IHG has in the pipeline in the Greater China region belong to their more affordable brands, compared with around 20% in their luxury segment. Marriott's chief financial officer Leeny Oberg highlighted in the company's earning call in May the 'terrific interest' in their mid-tier brands. But for Zhang, it's unlikely to be enough to persuade him to switch his allegiance back from China's domestic chains. 'I expect I'll continue to stay at Atour hotels in the future, even for personal trips, as I've come to like them.' More stories like this are available on
South China Morning Post
02-05-2025
- Business
- South China Morning Post
China's Labour Day travel boom bodes well for spending, but box office fizzles
Inbound travel has emerged as a bright spot in China's Labour Day holiday spending, while domestic tourism is seeing modest growth amid nationwide efforts to boost consumption during a heated trade war with the United States. Advertisement However, in contrast with the rosy travel demand, box office sales were looking to fall short of previous years, initial data showed. On Thursday – the first day of the Labour Day holiday – inbound travel bookings to China jumped 141 per cent, year on year, according to a major online travel platform. Data from marketing and tech firm China Trading Desk showed that 1.2 million to 1.5 million inbound travellers – excluding visitors from Hong Kong, Macau and Taiwan – were expected to enter mainland China over the five-day holiday, marking a more than 50 per cent increase from last year. Subramania Bhatt, the firm's founder and CEO, attributed the surge to China's relaxed visa-free entries and tax-refund policies, as well as improved travel services and growing exposure on social media that has sparked new interest in China as a destination. Advertisement To attract more inbound tourists, Chinese authorities have rolled out a series of measures – most recently easing tax-refund rules late last month – as part of broader efforts to boost domestic spending amid rising economic pressure from the trade war. The county's domestic tourism also saw modest growth on the first day of the holiday. The number of cross-region trips was expected to rise 8 per cent, year on year, to more than 340 million, Xinhua said in a report on Thursday, citing data from the Ministry of Transport.
