Introduction to International Tourism Discussion
00:00:00
Speaker
Hello and welcome to China Tourism Tuesday, discussion of marketing international tourism destinations in the China markets. My name is Charles Baten and I am coming to you today from Shanghai, China.
Family Travel as a Driver of Tourism
00:00:15
Speaker
Good day, everybody. I'm Michael Jones, and I'm coming to you from Amsterdam. And today we're going to be talking about just having a a quick chat about some market research about a very important emerging trend in China and across the world, which is family travel as a big driver of outbound tourism and spend, especially if not volumes.
00:00:35
Speaker
So Michael, you have come across an interesting piece of some market research.
Market Research Insights on Family Travel
00:00:41
Speaker
Could you perhaps give us just the main sort of themes that we should be looking at with this market research?
00:00:48
Speaker
Yeah, absolutely. so I was digging into, I was speaking to a friend the other day that works for a National Tourism Board. And we were talking about the whole category of family travel, thereby meaning family travel,
00:01:02
Speaker
with children ah specifically. ah So I did a bit of research into it, and especially from the Chinese outbound tourism market, quoting from organizations like Ctrip and some McKenzie reports and other reports, um it turns out that travel Chinese outbound travel that includes children could be anything between 30 and 35% of total of total um Now, that's not necessarily only parents traveling the children. That could also be, the as everybody's talking about, the multi-generation travel with the grandparents, the parents and the children.
00:01:39
Speaker
It's also absolutely children with their parents. It's also like one parent traveling with the child while ah the other parent is relaxing a little bit for a change. ah But these various dynamics.
00:01:51
Speaker
um in In terms of what they're doing, um naturally, it's the normal holidays to the closer holidays. in proximity to China, like Thailand and Vietnam and these countries to have a bit of a holiday.
00:02:05
Speaker
um We also know that, for example, like Thailand's leading hotel resort group, or the largest at least, they yeah they are building more and more family-friendly ah facilities, actual hotels that focus on families with children.
00:02:22
Speaker
So like more pools, more interactive activities with like kind of junior tour leaders for the kids, like all these programs to keep the children occupied while the parents can relax a little bit more.
00:02:34
Speaker
so So there's that. So that's just pure leisure. um But then also from talking to a ah lot of people um in South America, in Southern Africa, and even parts of Europe,
00:02:46
Speaker
um I've also come across, for example, ah people that organize ah groups for families, ah but it's more education
Educational Travel in Southern Africa
00:02:56
Speaker
based. So, take for an example, a Chinese family, the normally middle, upper middle class to wealthier Chinese families, they will travel to southern Africa.
00:03:08
Speaker
They will go do a package group that's well, sorry, a package for the family alone, ah but a package nevertheless. And ah that will be anything from one week to two weeks in length.
00:03:23
Speaker
where they'll be learning all about conservation, about nature, the fauna, the flora, learning about the animals. And there'll be like a Juni certificate given to the children at the end. ah The children learn an incredible amount about nature and the environment around them.
00:03:40
Speaker
So do the parents. And um these are quite high ticket experiences. ah We're talking about anything about like $1,000, $2,000 per family minimum per day.
00:03:54
Speaker
um I mean, you you do the math on that over a period of five days 14 It really adds up. And so we've been talking about, in our other podcasts, about educational ah purpose trips ah for as part of leisure, Tanya's outbound.
00:04:11
Speaker
um It's absolutely just growing and growing growing. And why I found this all quite interesting was, again, speaking to my friend who works for a National Tourism Bureau.
Misconceptions about Chinese Wealth and Travel Trends
00:04:22
Speaker
um They were saying that internally they were focused way more nowadays almost almost exclusively, not completely exclusively, but almost exclusively on solo travelers.
00:04:34
Speaker
and And to their understanding, a lot of the country destination boards around the world were actually doing the same, focusing a heck of amount on solo travelers.
00:04:46
Speaker
So when I was talking about family travel with children, I mean, again, i didn't intend to dive into this. It was also from a personal experience.
00:04:56
Speaker
I've got a wife, I've got two kids. My kids are nine and 11 years old. um So I absolutely travel according to what would interest my children and what would educate them. um There's one little thing here that...
00:05:14
Speaker
all tourism bureaus should possibly try to understand a little bit more, I would suggest, is that in today's world with modern tech and everything, um I think you'll hear from most parents, the biggest gripe is that the kids are either stuck on TV, stuck on the iPads, stuck on phones.
00:05:37
Speaker
And just like as most of us professional working adults like to detox from time to time from our phones because let's be honest our kids learn it from us.
00:05:49
Speaker
um The same can be said for the children. So there's a lot of parents around the world who absolutely want their children to detox from these from these screens.
Detoxing Children from Screens During Travel
00:06:02
Speaker
So when they travel they absolutely want a more wholesome experience. that will give opportunities for their children to not only learn a lot, but again also to detox from these screens.
00:06:15
Speaker
And I think that basic, basic little element is really underscored by a lot of the people in the travel and tourism promotions. industries. so So that's where it all came about. um I also looked a little bit more at other countries or other regions.
00:06:32
Speaker
um In Europe, ah European outbound tourism, quite similar. It's quite different from when you compare southern Europe and northern Europe, but absolutely in northern Europe, i.e.
00:06:49
Speaker
the not-so-great weather area of Europe, where it's a little bit more gloomy,
Family Travel Statistics Across Regions
00:06:54
Speaker
a little bit more colder, a lot more rain, um you're looking at fairly similar numbers of travel with children um outbound. You're also looking at numbers of anything between 20 30 percent.
00:07:10
Speaker
um North America, you're looking at about 15 to 25%. So overall, you're looking at at least 15%, up to 35% in Northern Europe, in North America, absolutely in China. and And it's quite interesting that China is actually of the strongest of those regions that I just mentioned for family travel.
00:07:36
Speaker
Yeah. and and And one thing I'd just like to add, Michael, i'm sitting here in Shanghai, I mean, Shanghai is... is keeping up with the Joneses, ah no pun intended, um ah for for China.
00:07:51
Speaker
um the The kind of competitive one-upmanship about whose kids are getting the better experience, the more holistic, well-rounded, um you know, all the new ways that China finds to be just overachieving with kids' education is absolutely spilling over into into travel.
00:08:12
Speaker
And what you'll find quite interestingly here is there's a ah strong imitative aspect that I think travel brands can really tap
Leveraging Social Media for Family Travel in China
00:08:21
Speaker
into. So, for example, if one travel brand can craft one or two or three compelling stories, publish them well on social media, document them very carefully and show a great outcome for how a family went to, for example, a luxury wildlife reserve, they their kids and that they got the family involved and did an experience that prepared their child for a certain outcome that is in some way better than what they would have received at the private school they're in in Shanghai.
00:08:55
Speaker
the imitative aspect of that begins to catch on and people will begin to say, well, if their child is doing it, then my child needs to be up to scratch as well. And that's when the sort of flywheel begins to really start going about, about parents wanting to keep up with what is perceived to be the higher benchmark, because whether we like it or not,
00:09:16
Speaker
China in 2025, the outbound tourism market is a game of speaking to those wealthy families that have the money to be able to leave the country in the first place and to not just do, you know, a little bit of ah domestic tourism. You know, you'll see a lot of middle class and sort of younger people here doing things that they call gap weekends or gap days on gap years anymore.
00:09:42
Speaker
the time and the money isn't really there with the the masses to to be able to you know even do a trip to Thailand. But especially if you're looking at Eastern China, now this would be your provinces of of Jiangsu, where you're looking at Nanjing, you're looking at Suzhou, then obviously Zhejiang, which is a you know the big tech and industrial heartland, um besides Guangdong, of China, where you've got Hangzhou and And yeah, similar Ningbo, similar industrial cities with a lot of wealthy families, Wenzhou as well.
00:10:16
Speaker
And then, of course, sort of um top of the top being Shanghai. Just in terms of disposable income and sheer ambition for their kids to do better, um is it remains this market from from the the messaging that we're getting and the the sense that we're getting on the ground over here is that you know Eastern China is is still an extremely potent and lucrative market for these kinds of wealthy family spending. And they are adventurous. They are comparable to you know chinese consumers overseas Chinese consumers in be it Europe, be it California, the States, similar amounts of disposable income.
00:11:00
Speaker
um Michael, I wanted to also touch a little bit on what the implications are of this sort of, shall we say, ah growth in the volume of spend a growth in the value of the spend, but from a smaller volume.
Chinese Families' Travel Spending Habits
00:11:16
Speaker
Now, what does this mean for tourism economies in cities, ah for example, where you are in Europe? Yeah, so I mean, first I just want to say I wholeheartedly agree with what you were saying earlier. And just want to add to that very quickly is that, um again, there's massive misunderstandings of China for for for people and markets that live outside of China.
00:11:43
Speaker
Again, unfortunately, China is still seen as like a place where there is cheaper labor and things like that.
00:11:53
Speaker
ah people don't quite understand the wealth that is in China. They absolutely don't understand the wealth that you'll see in Beijing and Shanghai and things like that, just by living in a normal apartment block and going to the underground floor and looking in the parking lot and seeing what cars are parked there. I mean, it will absolutely just blow their minds on a daily basis.
00:12:15
Speaker
So just to double up on that, in terms of spending on children in China, but what people don't realize, especially what people in Europe don't understand. So in Europe, a lot of the things are kind of subsidized in in a way. They they make it um through the taxes. um It's spread pretty well. And there's Also, like, for example, the sports clubs and everything, they use a lot of volunteers, which keep the the prices for participation very, very low.
00:12:48
Speaker
But in China, that's the exact opposite. If you are taking your children, if you stay in an apartment or Beijing and Shanghai and you leave your apartment with your children,
00:13:00
Speaker
That walking outside your apartment to go do an activity with your children is not going to cost you anything less than 250 RMB. um Minimum. So to for people that don't understand the currency conversion, you're looking at anything between $30 and $50 per month.
00:13:16
Speaker
dollarss just for an activity outside of the apartment, whether that be swimming in a pool, whether that being going to an ice skating rink, whether it be whatever, you name it, everything is expensive for a child.
00:13:32
Speaker
So for the same parents to plan a trip flying outbound with their children and engaging in the most fantastic, mind-blowing, educational, cultural things that they can experience is a great bang for their buck.
00:13:48
Speaker
it's It's absolutely worth it. Because in comparison, what they're already paying on a day-to-day basis in China, it doesn't really compare. they They're getting great value overseas for that.
00:14:02
Speaker
So this is something absolutely that the parents are willing to save up for or just spend on, ah essentially. They don't even have to save up that much for it. They're just going to go and do it.
00:14:13
Speaker
um But now, obviously, there's competition ah between the various countries and various activities to to get that dollar. um Now, to move over onto what they're spending on. So, like, I can talk for myself and naturally I've got lots of Chinese friends with children who are exactly the same boat. It's not so different.
00:14:34
Speaker
um Firstly, when you're travelling, again, you want what is the best experience for you or relatively the best experience for your children. So you're absolutely going to go to all the cultural and historical museums.
00:14:50
Speaker
You're going to do things that are nature related, ah light activity, light adventure ah related. um Of course, you're absolutely not spending a cent in a bar or a nightclub.
00:15:03
Speaker
um You're not necessarily going to the top Michelin restaurants. But you're also not going to like the fast food restaurants, which all the younger travelers and student travelers are going to. You're going to a more family, more authentic type experience restaurants.
00:15:20
Speaker
um If you are staying in a hotel, you are getting the biggest room, which is the family suites. Or you're getting two hotel rooms instead of one.
00:15:31
Speaker
The mother is with one child and the father is with the other child. um You are getting larger transportation. You're renting vans instead of a smaller ah vehicle.
00:15:43
Speaker
When you're Ubering, you're Ubering with a bigger one, not a smaller one. All these things obviously add on to the price. They don't even get me started on aeroplane tickets. um That's an entirely different story.
00:15:55
Speaker
But also the thing is, if you're staying self-catering or a mix between hotels and self-catering kind of thing, you are absolutely, and they are, Chinese tourists absolutely are, they're spending money in the local um grocery grocery stores.
00:16:11
Speaker
They're spending money at the markets. They're going on farm tours. They are really spending certain constant, they are spreading the spend quite a bit more in the local economy than solo travelers would be doing.
00:16:28
Speaker
ah The solo travelers will pretty much be going to the same places, spending their money in the same places. Whereas the family travels, they are absolutely, they're not only, and that's other thing, they're not just staying in the city, absolutely not.
00:16:45
Speaker
You'll spend one or two days in the city and then you'll go to the more the countryside areas and things like that. So absolutely, they are spending this.
Influence of Children's Interests on Travel Decisions
00:16:55
Speaker
They are spreading the spend far more than solar travelers are. So that's why i think it's ah it is absolutely a very, very exciting market.
00:17:05
Speaker
Absolutely. And um one thing that's a bit daunting for for me as someone in in tourism marketing is that some point we're all going to have to become experts on what um seven and eight year olds are into, whether it be but there'd be games and movies and just basically kids stuff in general, because these will be the emotional strings that will influence parents decision making.
00:17:32
Speaker
So, ah you know, whether it be Minecraft or ah Pokemon or whatever kids are into these days, this will be a massive influencing factor.
00:17:44
Speaker
that decides just on ah in terms of the IP. um I'm guessing I don't have kids of my own, but you know parents will be asked by their children and um very easily convinced that um we need to go to location XYZ because it was in this game it was in this movie. And ah there's an emotional bond already built with that. So let's let's start with, you know, you've got kids kids Tell me what what what are they into and why how does that shape the way that you guys travel? And how do you think that will play into China?
00:18:21
Speaker
Absolutely. um So, sure, I wish I could have my ah ah kids on this podcast. Alas, yeah, they're at school right now. But so I've got two sons. They are nine and 11 years old.
00:18:34
Speaker
um So from a China perspective, um Okay, so i'm I'm in tourism. So I do get to travel quite a bit for tourism. And I am very fortunate that I get to take my children with from time to time on that.
00:18:49
Speaker
So I can give you some of the highlights kind of thing. And again, these will be no different from um other ah absolutely Chinese children. I mean, my my kids still have their friends in Beijing that they still communicate with on WeChat and things like that.
00:19:04
Speaker
um So, for example, from a Beijing perspective, what my kids always remember most, funnily enough, is going to atmosphere the the tall on top of the tallest building in Beijing, ah where they could have like a hot chocolate and have an incredible view of the whole city.
00:19:23
Speaker
for whatever reason, that's stuck in their brains at the most. um Then naturally, the the various restaurants, they they love Chinese food. So the restaurants also is part of the thing.
00:19:36
Speaker
um if If you want to make, I think, a lot of kids, ah again, of also more from the the Chinese hotel experience. um Buffet breakfasts.
00:19:49
Speaker
Buffet breakfasts are an absolute winner for these children. they They get a thrill out of taking a plate and getting to choose whatever they want. It's democratized. It's not like their parents are like,
00:20:02
Speaker
forcing food onto their plate that they have to eat and have to have these veggies. No, now they can go off and they can take a bit of this, take a bit of that and whatever. So that is always like a highlight for them.
00:20:13
Speaker
um and What I do find interesting is, because again, we travel to a few countries, um So a few things in Europe, especially in Europe, for for Chinese outbound tourists, Europe is extremely well geared up for for family travels with children.
00:20:33
Speaker
um You can find a children's playground on almost every block or every three blocks you're going to find a children's playground. These are even apps where you can find where are the various playgrounds in each city.
00:20:47
Speaker
all these places with castles and again these places are not expensive they have these children's treasure hunts built into their system so while the adults are standing and reading all the monotonous uh signboards or listening to the audio guides ah kids are running around doing their treasure hunt ah figuring out clues and then at the end they've and Once they've found all the clues and all the places, then they get like a little certificate or a little prize or something or whatever.
00:21:17
Speaker
so So this is very prevalent in in Europe, um and it's just par for the course here. So so for I think, again, for for Chinese travelers, this must be something absolutely exceptional for them, and like really a ah lot of fun ah for them.
00:21:34
Speaker
um Out of all of these, out of all the places that my personal family has been to, what I find striking is that out of all of the nature, I mean, i again, I'm South African and my children have been to South Africa numerous times.
00:21:53
Speaker
But if you ask them, what is the number one nature experience theyve they remember? They always talk about the pink dolphins in the in the Amazon River in Peru.
00:22:04
Speaker
ah For some of the reason, that really stuck. i think it's because it was an extremely unique um experience. Also, having said that, i mean, i'm sorry, I'm going to do a a little bit of not on purpose pushy, but one of our clients that we work with, ah the Aquila collection outside of Cape Town.
00:22:26
Speaker
My children absolutely loved seeing ah the wildlife there, the elephants, and going on the safari rides and things like that, where they do allow children of all ages, because in the more serious ah conservation parks, they don't necessarily allow children. um So there is just absolutely so much out there um and But I would say ultimately it comes down to two basic things.
00:22:56
Speaker
Number one, the the destination has to be safe, obviously. But that's no different from Chinese normal outbound tourism. That's rule number one. It's got to be safe.
00:23:08
Speaker
um And then besides that, anything that has historical, cultural all or nature-wise um benefits education from an education perspective, that is also very important.
00:23:25
Speaker
But again, here we're not talking about anything different from your senior Chinese travelers and things like that. These are also essentials um for your quote unquote, your normal tourists out of China.
00:23:40
Speaker
So um I find it interesting that you you can be selling the same destinations, but again, just more geared towards on your marketing side towards children.
00:23:53
Speaker
um One thing we were chatting about a little bit before, and I found it quite striking. um So I don't know for those out there that know or don't know, um but Pokemon is making a huge comeback.
00:24:07
Speaker
And the reason is, is there's a new Pokemon TV series called a Horizon. And so my kids are really into it. They're meeting up with their groups of friends on Sundays and Saturdays, and they're going with playing Pokemon Go, chasing and catching these Pokemons.
00:24:24
Speaker
ah What's an interesting group dynamic about it is that some Pokemons you can only beat and capture if there's a team attack. So anything from normally is about four kids that need to be together.
00:24:39
Speaker
Which again, from a tourism perspective, this is interesting from getting parents and families together to travel. um What is also interesting is that they also have quite a bit of fitness as part of it. Some of the Pokemon activities you need to walk quite a few kilometers to be entitled to attack and catch that Pokemon.
00:25:04
Speaker
So again, it's it's kind of healthy ah so in that respect. what's What I found that absolutely fascinating was my youngest child was asking me the other day what I do for a living. And once I explained it to him about promoting countries and destinations and areas and brands for for Chinese Almond tourism,
00:25:27
Speaker
he He said to me, um well, that's really interesting, but there's a lot of countries that will tourism boards that could potentially partner with Pokemon.
00:25:39
Speaker
And what they could do is that we're 2025 now, maybe in two thousand and twenty six Germany could have a whole bunch of rare Pokemons that are for a limited period of time just going to be in in Germany and then eventually release it to the wider public and things like that.
00:26:01
Speaker
But that gives a year of children nagging their parents about wanting to go to Germany. If Germany decides, well, we've frankly speaking, we've got enough tourists. In fact, we've got over tourism in Berlin, then fine.
00:26:17
Speaker
Put the rare Pokemon where you want the tourists to go and put the least rare Pokemon in places that are hot. areas already where there's too many tourists already so i thought that was quite interesting for a nine-year-old child to recommend and i thought it was actually pretty john creative again a disclaimer i don't know if pokemon would allow this or have agreements around these things but but that that is the way of thinking getting to the mind of the child what excites them what what really gets them motivated because if they're going to talk to their parents
00:26:54
Speaker
convincingly and from a positive manner of what they would like to experience in other countries on their next holidays.
Social Media's Role in Family Travel Decisions
00:27:00
Speaker
I think the parents would be very open to that and absolutely considerate.
00:27:06
Speaker
Absolutely. Another, and I think this is maybe the last angle that we can cover on on on today's discussion is The social media angle. um Now, as I'm beginning to look at this, I'm also following, you know, various family influences, which is it's ah it's a growing trend also on Red Note here in China, being a very, you know, sort of a choice platform for for wealthier urban users.
00:27:32
Speaker
who would have the means to to travel globally is, for example, there's a Russian family who is ah ah kid, you know, all four of them are fluent in Mandarin, and they have millions of followers, and they shape a lot of um tastes around what is good to do as a family ah in terms of what are good products, what are good schools, what are good destinations, what are good experiences to have.
00:27:55
Speaker
So looking at it from a content marketing point of view, I would go as far as to venture to say that Red Note is and should be the platform of choice when looking to target wealthier families, not because you're speaking to kids directly as such, but because you can interact with you know real family influences.
00:28:22
Speaker
You will have a preponderance of wealthy ah wealthier mothers on the platform who have their tastes made and influenced and shaped. by other influencers and creators on the app, KOLs and KOCs.
00:28:37
Speaker
So um in a nutshell, I would say, you know, if tourism boards are looking to ah plug into this trend and just more generally be kind of aligned with what outbound tourism is in China in 2025 and with the Chinese speaking world, not just in China, but from L.A. to Bangkok, to to Shanghai, to Urumqi.
00:29:02
Speaker
um It's going to be Red Note. The people who have the money to be able to buy, you know, Omer's designer handbags, which are very strongly marketed on Red Note, are going to be the people who have the money to take the whole family overseas to to Germany or to ah to South America or to South Africa.
00:29:25
Speaker
So if if you know all the the market stats that we that we tend to put up on the show weren't enough to convince travel brands already, Red Note is important. This is maybe just another another data point that I would say um for higher end travel brands,
00:29:44
Speaker
ah country tourism boards looking to seriously engage with China, Red Note remains your platform of choice and something that I would ah deeply consider investing in if I were a decision maker in one of these organizations.
00:30:01
Speaker
Totally. I mean, of absolutely. I mean, Red Note, as we all know, is the go-to platform ah for for China. um and And especially from the Chinese outbound tourism perspective, this is where not only your normal consumers and potential tourists are going to be looking for information, but absolutely the same for families.
00:30:24
Speaker
There's no difference between men following particular... accounts and women following particular accounts of their interests than families following particular accounts of interests.
00:30:37
Speaker
Look, I mean, ultimately, social media and social media sharing is, I would still, and maybe I'm going to get into trouble here, but It's still ultimately a way of showing off, right?
00:30:52
Speaker
It's all about, like, I am better than you ah in so many, so many ways. And it's no different for for families. I'm not saying that people want to necessarily always show off or things like that.
00:31:05
Speaker
But people also want new ideas, new creative things. they they They want the opportunity that they can also be having some bragging rights about where they've been with their children.
00:31:17
Speaker
um I'm sure that some people also want to have some bragging rights for for the children, that the children can be telling their friends as to which cool, unique places that they went to and things like that. But be that as it may, Red Note is the place um in in the Chinese social media ecosphere at the moment where you can be doing these kinds of things.
00:31:37
Speaker
And it is interesting that there is, of naturally, there is this kind of family-related travel content that exists on Red Note. There's no doubt about it, but i would I would venture to say that the majority of that is user-generated from within China itself.
00:31:54
Speaker
um I would also venture to say that a lot of the national tourism boards, because a lot of them are focused on solar travel, are not necessarily doing this kind of content.
00:32:04
Speaker
Same as that many of the National Tourism Boards are not creating focused content around targeting Chinese senior travelers either.
00:32:15
Speaker
say Same thing. um There are so many gaps in this market right now from a tourism marketing perspective um on Red Note, that I think that those that have a bit of a more medium to long term focus could absolutely benefit from if they put in the right platforms now.
00:32:37
Speaker
So a final thought from from my side, Michael, and then we can we can wrap up today's discussion. So I think it's important that, you know, as you mentioned, travel organizations and tourism boards that don't have a very set idea about who their customer is going to be.
Advice for Tourism Boards on Understanding Visitors
00:32:56
Speaker
It would be very productive, a productive exercise to sit down with um partners in China and really ask the question, you know, who are going to be our main um source markets, what who are our main visitors, where are they, how old are they, and then what is the format of their travel?
00:33:13
Speaker
And really zoom in on those pain points. In the current markets, it is maturing. You really do as a destination to zoom in and say, OK, what are the pain points that I can solve? What are the aspirational pain points, the logistical pain points that I can solve for be it silverhead tourism, be it individuals, young people?
00:33:34
Speaker
be it families. um So a bit of a double click and a zoom in from these destinations would be very would be very helpful, I think, to their China market share.
00:33:46
Speaker
Michael, any final thoughts before we wrap up? No, that's 100%. I hope everybody enjoyed or got a little bit of an insight about so this particular category of Chinese outbound tourism from a family traveling with children's perspective.
00:34:02
Speaker
um I think people shouldn't be daunted about this. I think it's a really exciting market and absolutely. Consider making it part of your plans. Awesome. If you have any questions or comments about today's episode, you can reach out to us at marketing at cconsulting.com.cn or you can search us on LinkedIn and create consulting.
00:34:24
Speaker
We look forward to hearing from you.