1) Provide an overview of the Chinese outbound tourist market (travelling internationally).

Answer – The Chinese have recently arisen to become the largest group of tourists from any
country. Countries ranging from Australia to Zimbabwe are eager to market their destinations to
these new tourists, thus demanding an eagerness to know more about them. Chinese outbound
tourism has become the biggest tourist segment in the world and also has increased interest in
experiencing destinations outside of their comfort zones, and rising incomes. They almost take
more than 131 million trip overseas. The largest outbound market in the world is China.
According to a latest survey of Chinese tourist overseas some new characteristics of their
travelling kind get to came out. The following characteristics are given bellow.

 Not each and every Chinese tourist are overhyped about shopping. Some of them are
more interested on travel experience.
 A common Chinese tourist now desire to engage themselves in local life.
 Young Chinese people wish to take their time while traveling and by joining the group of
random new tourist.
 They are more willing to try unusual foods, and fine feasting appreciates even greater
popularity.

They request for semi-self-guided tours, high-end travel packages, and other modified
experiences is increasing quickly. The tourist are not all the same kind. There are eight types
of different preferences and behavior Chinese outbound tourist. The types of kind of tourist
are given bellow.

 Value seeing sight explorer – They are mainly parents whose income range is
between low to middle. Their main motive is to travel because they want to some
relaxation from their busy life. Value seeing sight explorer are not highly interested in
shopping but mainly focus on spending on comfortable hotels and transportation.
 Backpackers – They are mainly low to middle income based within the age limit of
20-30 years. Spends most of their time on outdoor activities by cherishing local
culture food etc. They are normally price complex but willingly to spend money on
entertainment and local activities.
  Unplugged – They are mainly Single bachelor or spinster. Their middle range income
people. The main motive of them to travel is to escape from daily tiring life and tend
to become with more price complexity.
 Shopper – They are usually married couples age limit within 30 to 40 years. The main
preferences of their travelling is for shopping where they got influenced by social
media and other stuffs. Conservative spending on items separated to shopping.
 Aspirant – They are mainly low income based people, who desire to watch and live
different life. Aspirant traveler are more willing to spend more.
 Novice Traveler – They are mainly middle income traveler. Actually not active and
prefer Chinese speaking tour guides.
 Individualist – Mainly high income with age limit 20-30. They are highly
adventurous prefer exploring unique places. Individualist prefer high accommodation
and food experiences.
 Sophisticated individualist – High income based people who loved designing their
own unique travel experience. They are less price complex

Reference from https://www.mckinsey.com/~/media/mckinsey/industries/travel%20transport

%20and%20logistics/our%20insights/huanying%20to%20the%20new%20chinese
%20traveler/chinese-tourists-dispelling-the-myths.ashx

2) Provide an overview of the Chinese inbound tourist market (travelling to Australia).

Answer - China is now Australia’s largest inbound tourism source market both in capacity and
spend terms. Tourism Research Australia (TRA) forecast Chinese tourist numbers in Australia to
reach 3.9 million in 2026–27 – an average annual growth rate of 11.9% over the next 10 years
and total tourist spend to reach $26.2 billion where an average yearly growth rate of 10.6%.
Leisure travelers will account for 53% of Chinese visitor spend in 2026–27, up from 40% in
2016–17. [ CITATION Chi19 \l 1033 ] Tourism Australia won 2019 Nature & Outdoors
Destination of the year at the Voyage Magazine awards in Beijing last week. Voyage Magazine
is one of the most renowned travel lifestyle magazines in China and provides in-depth travel
stories and industry insights to the readers. In a tourism context, area Australia is defined as any
part of the country beyond Australia’s main gateway cities and the Gold Coast and Tropical
North Queensland. This connects to 71 of Australia’s 77 tourism regions. The range of spreading
into area Australia can be measured in one of three ways:

 Stopover

 Visitor nights

 Visitor Spend

Chinese tourists consumed $12 billion while in Australia in 2018. The main purpose for
travelling to Australia was for holidays. 772,752 visitors came to Australia for holiday purposes.
The most popular destinations of Chinese tourist were Sydney, Melbourne, and Brisbane. They
consumed an average of 43 nights in Australia. China has a population of 1.38 billion people
meaning that less than 1% of their population visited Australia in 2018.[ CITATION htt1 \l
1033 ] Approximately 50% of Chinese visitors to Australia travelled on Chinese carriers, with a
fifth on China Southern. The strong economic growth in China has raised the middle income
class of the country significantly and stimulated substantial growth in outbound tourism to many
countries around the world, including Australia. The income effects on tourism demand from the
middle-income class of China were well observed and documented in literature. Tourism has
been a key industry contributing to the Australian economy through its export capacity. More
recently, macro-economic conditions have been conducive for tourism growth, particularly the
inbound sector, given the depreciation of the Australian dollar.

References from

https://www.tra.gov.au/ArticleDocuments/317/CHINESE%20FITS%20-%20THEIR
%20POTENTIAL%20FOR%20REGIONAL%20AUSTRALIA,%20FULL%20REPORT
%20MARCH%202019.pdf.aspx

https://www.tourism.australia.com/en/markets-and-stats/market-regions/greater-china/china.html

3) How do groups and interpersonal influences affect Chinese tourists’ travel decisions?
 influence through social media
  Word of mouth

Answer – Social media has made a vast impact on the tourism industry. Consumers involve with
social networking sites to research trips, make informed decisions about their travels and share
their personal experiences of a particular hotel, restaurant or airline. Trip Advisor in particular
has had a wide-reaching effect on the industry. It has 50 million unique monthly visitors who are
actively seeking out travel information and advice from the sources they trust the most: other
tourists and holiday-makers. The middle-class section of the Chinese demographic is the largest,
which means most of their population is likely to be influenced by social media as the young
demographic are more incline to be sticky towards their phone. Hence, when the Chinese see the
beautiful posts made by different pages about the beautiful landmarks of Australia, the Chinese
are feeling an emotional to be realistically setting foot in those sites. Social media is present in
every activity of Chinese individuals such as twitter, Facebook, linked in etc. Posts made in
Instagram have influenced many all over the world to explore the vast mysteries it has to offer
and which country is vaster and more unique than Australia.

Word of mouth is by far the most famous and most used method of influence in travel all over
the world. Word of mouth had always been used in the 1970s when websites did not exist,
people used to ask each other which destination is best for a honeymoon for instance. People
tend to visit the most suggested site for tourism as it feels safer and less risky. Word of mouth is
most popular because it always comes with an honest opinion, advices and life hacks to further
intensify the adventures of the travel. WOM was studied by using an epidemiological diffusion
model. This was built by considering the infection cycle in an individual (actor). The actor is first
considered vulnerable, i.e. able and ready to receive a piece of information. Then, if touched by a
message it becomes ‘infected’ and is considered as such for a certain period of time. Finally, the
individual can recover by forgetting what he received (or discarding the information).
Traditionally a perfect mixing is assumed all individuals are equally able to infect all others, the
contacts between them are ignored or better considered as having a random distribution. When
dealing with WOM however the distribution process grows by using the relationships among the
social network formed by the individuals (potential tourists in our case) as infection channels.
References from
https://www.tourism.australia.com/en
https://www.researchgate.net/publication/271926902_The_Characteristics_of_Independent_Chin
ese_Outbound_Tourists

4) How do situational factors influence Chinese tourists’ travel decisions?

-Time aspects and (UN) planned behavior

-Antecedent conditions

Answer – The Chinese are most often known to be stringent in terms of spending money
vacations and other leisure activities hence, the first aspect they are likely to consider the cost
of the tour and how much of sight seeing is promised. The time of Australia and China are
different as China is situated in Asia and Australia is a different continent, in other words the
time when the tour starts will have a large impact in the decision making of the travel. The
timing of the tours needs to be set in retrospect with what facilitates the Chinese time chart.
The tour schedules will need to be flexible in order for the tourists to cope up the jet lag they
may face. The weather conditions where the tours will be taken and the temperature and
humidity levels are needed to be stated to the Chinese tourists beforehand so the tourists can
take precautions as China is a country of milder weather in comparison to Australia due to
the extreme heat that can be seen in the country. Antecedent conditions represent a temporary
state within dynamic natural and social systems that precedes and influences the onset and
magnitude of a hazard and its consequences. They are distinct from, but influenced by, what
are commonly referred to as preconditions (preexisting conditions). Preconditions are
generally static or slow changing and influence the inherent (as opposed to temporary)
susceptibility of an area. Australia is country of remarkable and beautifully unique creatures
but these creatures such as Spiders and kangaroos can also be dangerous. Hence the tourists
need to be divided as to who might want to see a more intense adventure and who might just
want to enjoy the scenery. The Chinese believe in Buddhism hence shrines of the Buddha
and other cultural shrines related to mainland china may need to be used in order make the
tourist feel more at ease and less nervous of the fact that they are in a foreign country. Some
tourists may not be familiar with Australian accent and some may not even know English
hence a translator need to be present in order to help with communication.
 References from

https://www.nielsen.com/cn/en/insights/article/2018/nielsen-report-ten-trends-of-chinas-
consumer-market-in-2018/

https://www.griffith.edu.au/__data/assets/pdf_file/0025/20986/1-s2.0-S0261517717301383-
main.pdf

5) How do Chinese tourists make their travel decisions when planning a holiday to
Australia?

Answer - China is now the second-largest source of tourists to Australia, with 859,500 visitors
arriving in 2014 (according to the Australian Bureau of Statistics). The tourists of China are very
much into online media to plan for their holidays. They barely use traditional travel agencies but
prefer to use online travel agencies to do so. This tech savviness pushes Chinese tourists to use e-
tourism platforms out of accessibility and for the deep discounts that can be found. Ctrip is the
leader among online travel agencies, followed by Qunar and eLong. These agencies all offers
flight ticket, hotel rooms, packaged tours and much more catering to Chinese needs. In order to
waste as little time as possible they will plan their trip well in advance and obtain all the
information they need for travel. Chinese tourists are increasingly interested in the everyday life
of local residents in Australia, and the websites would be more appealing to Chinese tourists if
the information provided reflected this. The visitors in China expect county websites not only to
offer information, but to also serve as booking facilities. Though Chinese tourist search for
websites were designed eye-catching, with too many levels to navigate. Western Australia’s
travel website is cited as an example. The website divided the state into five regions, and then
lists the visitor centers in each region separately. The tourist of china search for hotel with the
chain of brands. Without a familiar brand, it can be difficult for Chinese tourists to presume the
standard of accommodation and make informed choices. This issue resonates strongly in
Australia, that their regional accommodation offerings are generally under par and service
specialization is relatively low compared with that of similar hotels in China. They search for
hotel which has high speed wifi because this is almost universally available throughout China,
even in most remote regional towns in its south western and north western regions.
Communication networks in regional Australia also caused inconvenience for Chinese tourists’
access to personal financial services which must be improved in Australia. They must have
suitable atms throughout the country where they can easily access cash. Australian must have
adequacy service of hotel transport etc which the Chinese seeks the most. Some of the Chinese
travels for shopping so must have an access of good shopping mall, with cheaper price than their
country. Clearly this is an area of potential interest and suggests that the structural characteristics
of a target market be considered in developing tourism in Australia for Chinese based tourist. It
may also be helpful in the study of viral marketing programs. In this area there has been some
recent work on how Chinese tourist make their decision while travelling to Australia modeling
the effect of size of a person’s.

References from

https://www.chegg.com/homework-help/hotel-restaurant-and-travel-law-7th-edition-chapter-13-
problem-1tbcq-solution-9781418051914?
trackid=dfdb973950ee&strackid=c4ff5dc157cf&autosuggest=1&ii=3&uqry=5)How%20do
%20Chinese%20tourists%20make%20their%20travel%20decisions%20when%20planning%20a
%20holiday%20to%20Australia&event=click_submit

https://www.tra.gov.au/

https://www.mckinsey.com/industries/retail/our-insights/here-comes-the-modern-chinese-
consumer