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Outbound Travel of All People – Upgrade of China’s Online Tourism Consumption Leads New Fashion of Vacation
In 2015, the outbound tourism has grown quickly with an ever-growing strength, and the cross-border tourism cooperation dominated by the government and enterprise has kept deepening.
  • 04 Jan, 2016
  • Travel
  • 2326
In 2015, the outbound tourism has grown quickly with an ever-growing strength, and the cross-border tourism cooperation dominated by the government and enterprise has kept deepening. Major vendors like Ctrip.com, Alitrip, Tuniu.com and Ly.com have taken continuous actions to expand the market. Based on the analysis, Analysys thinks the outbound tourism market has mainly presented four characteristics in 2015:
 
I. The outbound tourism scale has quickly grown and driven a new tide of vacation

In 2001-2014, the scale of outbound tourism of Chinese citizens kept growing and reached 107 million in 2014, almost doubling the figure in 2014 and maintaining a compound annual growth rate of above 16%. 
 

 
According to Analysys data, in 2014, with the advantages in long tourism time, high unit price per customer and good tourism experience, the online outbound tourism first overtook the domestic excursion and domestic long-distance tourism to become the most important business segment in the online vacation area, and took a share of 45.1%, a rise of 18.37% year on year. As in 2015 Q3, the outbound tourism contributed more than half, up to 51.4%, of the online tourism transaction volume, a rise of 13.97% year on year, and first exceeded domestic tourism to become the biggest business segment in the online vacation market.
 

 
II. Outbound tourism benefits multiple factors and blessings like visa

In 2015, China’s outbound tourism market has embraced continuous blessings, greatly stimulated by the State Council and the National Tourism Administration. The State Council has issued documents to supervise the implementation of the policies benefiting the tourism market such as paid leave, and hosted mutual tourism years with China’s major tourism destinations through various diplomatic means to promote the economic exchange in the tourism area. Meanwhile, the swift growth of the outbound tourism has also benefited to varying degrees from the visa policy relaxation in Japan, Korea, Thailand, America, Australia, New Zealand and other countries as well as the devaluation of foreign currencies in Japan, Australia and other countries. In 2015 Q3, spurred by the faster growth of the outbound tourism, the online tourism market size grew 53.4% quarter and quarter and up to 71.99% year on year, representing the highest quarterly growth in two years. In the quarter, the online tourism market size exceeded RMB15 billion and steadily marched towards RMB20 billion.

III. Major vendors took active moves, intensifying the competition in the outbound tourism market

The outbound tourism will become an important business segment in future, note the OTA represented by Ctrip.com, Tuniu.com and Ly.com as well as the online tourism platforms represented by Qunar.com and Alitrip. On December 10, 2015, Ctrip.com entered into strategic partnership with Korea’s Lotte Tour to be dedicated to integrating and procuring local tourism resources, following the strategic partnership with HIS, the second largest travel agency in Japan. In March 2015, Tuniu.com also acquired CITS Zhongshan and China Classical Holiday, thereby accessing profound tourism resources in Taiwan Region. Through Tmalll International, Alitrip explored partner resources represented by countries, successively launched several national theme pavilions, and delivered convenient visa services of Luxembourg, Singapore and other countries to high-quality members.

As to hot destinations, major vendors keep increasing the business depth and service capacity in hot destinations by setting up branches, opening ground service centers and establishing joint ventures with overseas tourism service providers.

As to customer sources, Ctrip.com, Tuniu.com and Ly.com started building offline direct stores, created tourism advisor and other positions based on the long decision-making cycle and nonstandard characteristics of the outbound tourism to deliver in-depth information consulting and product sales services to customers.

As to online product, Tuniu.com and Ly.com successively launched special products and strengthened control over team leaders, guides, vehicles and other service factors to improve the tourism experience of outbound tourism groups and supply online outbound tourism products with a high price-performance ratio.

As to marketing, the online tourism market has introduced the “online tourism+” mode, fully entered into crossover fusion with the entertainment industry with diversity and scalability of the tourism industry and partnered with powerful IP brand values (such as the Voice of China and Running Man) to obtain higher brand values. Meanwhile, they have also attempted to establish crossover cooperation with interactive gaming and cultural performances to create new IPs. On December 10, 2015, Ly.com formally published the strategic planning for the Ly brand in 2015, indicating Ly.com has entered into the entertainment + marketing era and started building a tourism culture ecosystem with every effort.

IV. The market size and product R&D deserve expectation

In the opinion of Analysys, in the grand context of continuous upgrade of the national tourism consumption in 2015 and joint drive of the government and major vendors, the outbound tourism market will set to grow quickly in size and speed, and in particular, the market will embrace a foreseeable prospect, with the downward migration to cover tier-2/3 cities and the opening of more hot destination countries.

Now, major destinations of outbound tourism still focus on Asia and China’s neighbors. In future, profound development of America, Australia, New Zealand and other destinations, and continuous development of high value-added products will continuously give a shot on the arm of the market.

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Research Note:

To deliver the industrial analysis, Analysys mainly employs the industrial analysis model and combines the model with the market, industry and vendor research methods to mainly reflect the current market status, trend, deflection point and rules as well as the current status of vendors based on macroscopic industrial data, quarterly final user survey data, vendors' historical data and quarterly vendor monitoring information.

Analysys believes data derived from the aforesaid industry research methods fall into the error range generally accepted in the industry and can accurately reflect the industry trend and pattern.

Research results obtained from the professional research methods are for reference only. For actual data of vendors, please inquire a about their financial reports.

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