In 2017, Kantar TNS Australia has taken their annual syndicated study to China, a key inbound market for Australia, looking at Chinese travellers’ mind-sets and attitudes to travel.
The share economy is typified as an online platform that connects buyers and sellers, and usually incorporates a peer review system where goods are rated and reviewed to build trust and create a minimum standard.
The share economy has seamlessly integrated into everyday life
China has been quick to adapt to the share economy and has emerged as a global leader – in 2015 the share economy was worth US$299 billion and is expected to grow 40% by 2020. The share economy is an integral part of younger Chinese people’s lives and is enabling China to become a cashless society. It is critical that the Australian travel industry adapts the offer to account for this shift in way of life to meet Chinese travellers’ expectations.
Enhancing overall life… though barriers still remain
Life is more convenient for Chinese travellers with the share economy which is more affordable and better value for money. Instead of booking ahead, they are booking in the moment from the comfort of home and travel is more affordable – they can interact more with local people and have new experiences, meeting key travel motivations. However, for 1 in 4 there are still concerns around safety and quality standards.
Share economy providers are a major player in the accommodation market
Share economy providers account for 10% of the overseas accommodation market for Chinese tourists and can build on their strong image and grow through both new and repeat customers. While luxury hotels are best poised to gain market share from share economy providers, all traditional accommodation providers should look to communicate the value of their offer and provide greater personalisation and customisation to grow.
Current market share of share economy homes among Chinese travellers in the overseas travel accommodation market:
10% = 13 million Chinese tourists per year.
Source: Domesticate 2017, KANTAR TNS Australia
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