Tuesday, June 3, 2014



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Leading authority on the Chinese luxury consumer, Hurun Report publishes The Chinese Luxury Traveler (2014) in association with ILTM Asia
Hurun Report and ILTM Asia today released The Chinese Luxury Traveler 2014, a 28-page report on the travel trends of the Chinese high net worth individual (HNWI). This is the fourth year of the benchmark report.

The Chinese Luxury Traveler 2014, Hurun Report and Diadema, a leading Chinese outbound luxury travel agency, surveyed 203 Chinese luxury travelers who had spent US$25,000 on a trip in the past three years, and had – on average - visited 40 countries.

Background. Chinese outbound tourists in 2013 increased by 17.8% to 98 million, according to the National Tourism Administration, making China’s outbound market now the largest in the world. Within this big picture, the number of Chinese luxury travelers has also grown to record heights based on the growing number of Chinese millionaires.  Today there are 2.9 million dollar millionaires in China, a year on year increase of 3.6%, according to a recent report by the Hurun Research Institute.

This is a translation of the Chinese press release. For the full press release, please refer to the Chinese version on http://www.hurun.net/EN/ArticleShow.aspx?nid=1499

Travel is still the most popular leisure pursuit for Chinese HNWIs; they are busier than ever with business trips. They were on the road an average of 7.5 days per month, half a day more than last year. For the Top 10% richest, they were on the road 12 days per month, 3 days more than last year. This has resulted in slightly less time for leisure travel.

The report found that for those luxury travelers who have been to 40 countries or more, they spent 36 days abroad last year, half for leisure travel.  Driving tours within China are becoming increasingly popular, with 43% replying they went on a driving holiday last year. 66% consider medical tourism. The Caribbean is the most popular destination for luxury cruises, although Antarctica and the North Pole are fast-growing.

Rupert Hoogewerf, Hurun Report Chairman and Chief Researcher said: "Experiential travel rather than just shopping tours are becoming more popular now that the Chinese luxury consumer has traveled more widely.”

Alison Gilmore, ILTM’s Senior Exhibition Director commented: ”The pace of the growth in this region is remarkable, not just in the numbers that are able to travel, but also in the numbers that want to travel. Where they want to go and what they want to experience is the key question.  ILTM Asia 2014 will profile those that are shaping the next generation of global travel and the diverse demands of the new Asian traveler.  We are delighted to be once again working with Hurun Report in highlighting these important Chinese high net worth consumer trends.”

Paul Hicks, GHC Asia CEO, said: “As a leader in providing public relations and marketing services to the luxury travel industry in Asia and beyond, GHC Asia is proud to collaborate once again with Hurun Report on this year's white paper and to provide research support in this important sector of the industry.”

For the full report, please visit http://up.hurun.net/Hufiles/201406/20140603131531720.pdf

How destinations decided and bookings made for ‘My Best Trip’
The report found that for luxury travelers who have been to 40 countries or more, their best trip for last year was inspired by word of mouth (45%), followed by family recommendations (20%) and luxury travel agencies (16%). For this trip, they traveled with friends (49%) and family (46%); sightseeing was the main purpose. They travelled for 12 days in a group of five people. 34% flew business class.

58% of the destinations are decided by themselves; hotels are booked via a friend (37%) or by themselves (34%). Hotel bookings were mainly through travel agents (50%) and third-party online booking sites (28%).

Destination Inspiration
58% made the decision on their destination themselves, with word of mouth recommendations most important, 45%; family suggestions, 20%; travel agencies, 16%

Planning the Route
Planning the route with a travel agency was most popular
Travel agencies, 31%; online research, 28%.
Travel purpose: tourism, 29%; cultural experience, 15%
People accompanying: friends, 49%; family, 46%;
Itinerary: Private customization, 43%; own plan, 42%

Making the Booking
Hotel booking: friends, 37%; themselves 34%
Booking method: travel agencies, 50%

How destinations decided and bookings made: Chinese New Year
The report found that for luxury travelers who have been to 40 countries or more, 54% traveled overseas during Chinese New Year 2014, a 7% increase over last year. Short-haul destinations such as Thailand, Bali and Cambodia, and long-haul travel destinations such as the United States, Australia and Dubai were popular choices. One in ten went on a driving holiday.

72% were accompanied by family members, averaging four, and they mainly traveled for 10 days. One in two flew business or first class.

More than half decided on their destination by themselves, and 37% were decided by their family. Half booked the itinerary and hotels themselves, with 20% booked by their family. On-line booking was the main booking method accounting for 42%, whilst booking via travel agencies, hotel web-sites and locals was most common for hotel booking.

Destination Inspiration
Family advice is the most important travel motivation factor
52% comes from family suggestions; friend’s referral, 23%

Planning the Route
Source: Internet, 44%; travel agencies, 33%
Destination decision making: self-made, 54%; family, 37%
Travel purpose: tourism, 25%; cultural experience, 14%
People accompanying: family, 72%; friends, 24%
Itinerary: own plan, 68%; Reference guide, 12%

Making the Booking
Hotel booking: own, 50%; family, 20%
Booking method: third party online booking, 42%; travel agencies, 28%

(Source: 2014 Survey on China’s High-end Tourism by Diadema and Hurun Report)

Hotels: Location, Brand and Price
Geographical location, hotel brand and room rate were most important for the Chinese luxury traveler, followed by hotel facilities, restaurants and service.

Shangri-La is the preferred hotel brand for the tenth year running, pipping a strong performance from the Ritz-Carlton.
Table: Preferred Hotel Brands of the Chinese HNWI

Hotel Brand
The Ritz-Carlton
Mandarin Oriental
Four Seasons
Park Hyatt
Grand Hyatt
St. Regis

Source: Hurun Report Chinese Luxury Consumer Survey 2014
Medical Tourism
66% now consider medical tourism. Of those, 47% chose to go to Europe and the US. The first choice is Switzerland (59%), followed by the US (22%). Of the 28% choosing Asia, the first choice is Japan (44%), followed by Hong Kong (24%). Within China, 16% make Beijing their first choice (25%). Another 9% chose to go to the seaside for convalescence, and of these 72% chose the Maldives.

Convalescence was their main reason for medical tourism (39%), and 34% for medical checkups. 21% went for anti-aging reasons, mostly female.

For the health of their parents, 25% chose to send their parents travelling. Some 20% choose to give health care products to their parents, and 19% help parents contact doctors.

Top 10 Chinese Outbound Luxury Travel Agencies 2014
This year’s Top 10 are (in alphabetical order): 8 Continents, Caissa, CITS, Ctrip, CTS, Diadema, Farers International, HH Travel, My-Tour, Zanadu.

In April 2014, Hurun Report and GHC Asia, a leading PR agency, surveyed 35 senior global hoteliers to compile this list of leading Chinese outbound luxury travel agencies

In terms of travel themes, adventure travel and self-drive tours led the way.

When asked their ‘must-do’ travel plans for the next three years, South America (especially Bolivia) took 36% of the vote, followed by Polar trips 34%, Africa, Cuba and Mexico.

Luxury cruises to the Caribbean
26% want to go on a luxury cruise, of with 48% want to go the Caribbean, followed by the Mediterranean at 43%; and the Arctic and Antarctic on 32% and 29%.

Space Travel
7% claim to want to travel to space within the next three years. 44% want to see earth from space, followed by the thrill of being an astronaut 18%.

Travel is Still the Preferred Leisure Pursuit for Chinese HNWIs
Travel is still the preferred leisure activity for Chinese HNWIs, whilst swimmingand golf continue to be the most popular sporting activities. Jogging has risen to 3rd place, resembling more the Western concept of fitness regimes, whilst for female HNWIs yoga continues to be most popular. (Source: Hurun Report Chinese Luxury Consumer Survey 2014)

Preferred Luxury Travel Destinations: Australia fights off France
Australia replaced France to top the list of preferred international luxury destinations. France has been top for the past 3 years. Dubai jumped from 8th to 3rd, whilst the Maldives rose to 5th place.

Domestically, Sanya has been the most popular domestic tourist destination for 4 consecutive years. Although it remains in 1st place, the proportion of HNWIs choosing to travel there has decreased somewhat. Hong Kong maintains its rank at 2nd place while Macau rose 2 places and is ranked 5th this year. Yunnan made the top 3 for the first time.             

Preferred International Luxury Travel Destination

Preferred Domestic Luxury Travel Destination
1 ↑ 

1 - 
2 ↓ 

2 - 
Hong Kong 
3 ↑ 

3 ↑ 
4 - 

4 ↓ 
5 ↑ 

5 ↑ 
6 ↓ 
United States 

6 ↓ 
7 * 

7 ↓ 
8 ↑ 

8 * 
9 ↓ 

9 ↑ 
10 * 
New Zealand 

10 ↓ 

↑ = ranked higher than last year ↓ = ranked lower than last year   * New entry this year
Source: Hurun Report Chinese Luxury Consumer Survey 2014

Travel Retail: Chinese widen gap on second-placed Russians
Mainland Chinese are the biggest shoppers for luxury for the fourth year running. They widened the gap with Russians.  Indonesia jumped to third place. Fashion purchases jumped significantly. (Source: Global Blue statistics on Chinese Traveler’s Tax Free Shopping Spending 2013. Global Blue is a leading tax-refund organization; data does not include tax-free shopping at airports and data only represents spending by Global Blue members.)

Travel Gift Vouchers
Gifting is the number one factor driving Chinese travel shopping.

For men, red wine and watches are the preferred choices for gifts under RMB 20,000, with imported spirits, such as whiskey and cognac, up two places into 3rd place. For women, the preferred choices are jewelry, fashion and watches. Travel vouchers rose fastest, ranking 4th this year.When selecting gifts for the elderly, more than half of all individuals chose healthcare products, followed by travel vouchers and houses. For children, consumer electronics ranked top, followed by clothing. The super-rich had a tendency to gift travel vouchers to women.

For the first time, Louis Vuitton has lost its crown as the preferred brand for gifting by men, losing out to Herm├Ęs. Chanelcontinues as the preferred brand for gifting by women. Moutai is – for the third year running - the only Chinese brand that made it to the list, but it has fallen one place to 14th. Whilst leather accessories proved most popular overall, jewelry brands had a bad year in the gifting market. (Source: Hurun Report Chinese Luxury Consumer Survey 2014)

Overseas Studyand Immigration Drive Outbound Travel
Millionaires send their children abroad to study at an average age of 18 years old, whereas among the Top 10%, the average age is 16. For pre-university education, 28.7% say UK is the destination of choice, whilst the US remains at the top for post-graduate education at 36%.

The number of high net worth individuals who have emigrated, or are planning to do so, rose from 60% to 64%. It is worth noting that of the 64%, only 15% are looking to give up their Chinese nationality, with the majority looking to a permanent residency overseas.  (Source: Hurun Report Chinese Luxury Consumer Survey 2014)

Hurun Report and Luxury Travel
Hurun Report is proud to be the official media partner of ILTM Asia in Shanghai for the eighth year and ILTM in Cannes.

Hurun Report presents annual awards to the best hotels and best new openings within China and its important cities. The Hurun Presidential Suite Awards recommends the best presidential and chairman suites of hotels.

In 2010, Hurun Report hosted a photo exhibition entitled The World at Their Fingertips: Ecotourism Through the Lenses of China’s Entrepreneurs, showcasing works from six Chinese billionaire entrepreneurs with a passion for ecotravel.

In March 2014, Hurun Report published its second report promoting yacht charter: The World’s Fastest Charter Yachts 2014, following on from The World’s Largest Charter Yachts 2013
About International Luxury Travel Market Asia (ILTM Asia)
Now entering its 8th year, ILTM Asia is the leading luxury travel event for the Asia Pacific region. ILTM Asia is an invitation-only event, where the very best travel agents and advisors from across Asia meet the world’s very best luxury travel experiences. For more information on ILTM Asia please visit www.iltm.com/asia

About International Luxury Travel Market (ILTM)
International Luxury Travel Market is a portfolio of global, regional and specialist luxury travel events. Alongside the global flagship event in Cannes, ILTM has core international events in the Asia Pacific and Americas regions and three specialist events; ILTM Japan, ILTM Africa and ILTM Spa. For more information on ILTM events please visit www.iltm.com

About Diadema
Diadema is a leading Chinese outbound travel agency.  Founded in Hamburg, Germany, Diadema has offices in Beijing, Guangzhou and Shanghai. Diadema’s focus has been on providing experiential travel.

Diadema is one of the first luxury outbound operators to provide tailor-made travel services, with an experiential focus on Polar travel.

About Hurun Report Inc.
Nobody Knows China’s Rich Better!

Established as a research unit in 1999 by British accountant Rupert Hoogewerf, Hurun Report Inc. has grown into a leading luxury publishing group based in Shanghai, China. Hurun Report Inc. has a stable of four luxury magazines, the Hurun Research Institute and an active business events division targeting China’s entrepreneurs and high net worth individuals.

The flagship Hurun Report magazine is published monthly and reaches the households of 112,000 proven wealthy Chinese individuals and their advisers. Hurun Report is best known for its annual Hurun China Rich List, widely considered the bible of wealth and de-facto Who’s Who of Chinese business. Since 2012, Hurun Report has published the Hurun Global Rich List, a ranking this year of the 1867 dollar billionaires in the world.

Hurun Report Inc. also publishesWings & Water, The Schools Guide Series andHorse & Polo.

Wings & Water
is for the so-called lion kings of China; those individuals who lead industry and shape opinions. With a print run of 25,000, Wings & Water addresses the needs of those entrepreneurs looking to purchase a jet or yacht, together with features on luxury travel, tax planning and collections.

The Schools Guide Series is targeted at Chinese parents looking to send their children to schools, especially secondary and undergraduate programmes, abroad. The Schools Guide Series currently includes guides for the UK, US, Canada, Australia, New Zealand, Switzerland and Singapore. Unlocking the Doors to the World’s Best Schools.

Horse & Polo provides in-depth coverage about horse related issues including features on Polo, Dressage, Horse Racing, Bloodstock as well as Dogs and Croquet. The magazine is designed to be the glamorous companion for wealthy Chinese with a passion for horses.

Hurun Report Tablethas been regularly ranked by Apple App Store as ‘Hottest Free Business Magazine App’; and Hurun Mobile, with over 1m readers a month, and in Nov 2013 achieved the highest readership on Viva platform across ALL CATEGORIES.

Hurun Report’s close personal relationships with many of China’s leading entrepreneurs also provide the basis for the company’s busy calendar of events and training. In 2013, Hurun Report hosted 91 events, the majority in China.

For further information, see www.hurun.net

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