After last week’s Yuan dip, everyone has earned the right to wonder whether the Chinese tourist flood will continue to be as profitable as before.
Last year more than 100 million Chinese travel traveled abroad. Their most favorite activity was undoubtedly luxury shopping with a particular taste for famous brands like Louis Vuitton, Cartier, Gucci and the like.
Now, Chinese tourists are more cautious about their budget and what they buy, even though the huge price difference between their country and the rest of the world is huge. Indeed, there is a 30% to 50% price difference caused by taxes between the two. I don’t think we will see another 45% purchase of luxury by Chinese Tourists as long as the situation doesn’t improve… What do you think?
An devaluation unseen since 1994
The 2% depreciation felt like a major earthquake for many people and institution. Experts say that this loss is actually a fair evaluation of the currency real power on the international scene.. Still, many in the tourism industry fear that this will drive many Chinese tourists away from destinations needing this industry like Maldives
In addition, people foresaw a massive fall for the main luxury brands which led to a fall in stocks.
The Chinese outbound tourism is still big
In 2014 the Chinese outbound tourism market value was $165 billion, increasing 28% from 2013. There is no denial that the Chinese market value won’t be as fast growing as before and the CNY depreciation will somewhat slow things down.
It’s not just the travel industry that’s concerned but also the education industry.
Given the already highly expensive tuition fees in some countries, some students might think twice when they choose between a top university in Beijing and a good University in a foreign country like Australia
Chances are the ripples will be hard to see in the heat of the moment. Minds will have to cool down before any reliable analysis and forecast can be done.
Still, ways of circumventing this problem can be done by designing the right digital solution with the right product offer.
1st: Increasing the fidelity program and promoting them: the more you buy, the cheaper it gets.
2nd use the most appropriate channels to reach the proper targets: potential Chinese tourists. They are mostly high earners (more than 10000 Yuan per month in earnings) between 20 and 30
These channels are:
- Social networks (more information there)
- SEO (All you need to know about SEO for tourism)
- Online press relation (Onlines press relation is one key element for attracting Chinese tourists)
Here is an overview