Essay on Research on Chinese Luxury Outbound Tourism

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Research of China Luxury Outbound Travel Market

Tianyi Zhao

Table of Contetns 1 Abstract 2 Market Overview 3.1 Market Size 3.2 Market Value 3.3 Market Growth 3 Demand Analysis 4.4 Demographics Population Geographic Distribution Gender 4.5 Traveler Profile Trip Frequency and Length Trip Purpose and Period Travel Spending Planning Preference 4 Supply Analysis 5.6 Overview 5.7 Company Introduction 5.8 Product 5.9 Marketing 5.10 Price 5 Conclusion 6.11 Overview 6.12
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Demand Analysis
3.1 Demographics
3.1.1 Population
We define the luxury outbound market as the population of Chinese citizens who owns 10 millions RMB (approx. 1.5 million U.S Dollar) total assets that includes real estate, stock, investment and art collection. In 2011, the 10.3 GDP growth rate of China helped to rise the value of real estate heavily which resulted in 1.02 million of multimillionaires. Besides, there are 60,000 billionaires and 4000 multibillionaires. And the population of Chinese millionaires is expected to grow steadily by a rate between 7.3 and 9.7%. However, it should also be noticeable that only 1 of every 1400 Chinese is qualified to be named by the multimillionaire which is obliviously very rare indeed.

3.1.2 Geographic Distribution
The luxury outbound potential clients mainly concentrates in Beijing and Shanghai, According to the Hurun Wealth Report 2011, Beijing and Shanghai owned almost one thirds of the riches. Besides, it also tends that the costal area weights heavily which captured almost 72.2% of the total.
3.1.3 Age and Gender
In general, the average age of Chinese multimillionaires, billionaires, and multibillionaires are 39 years old, 42 years old, and 48 years old, respectively. And general male to female ratios tends to be about 7: 3.

3.2 Traveler Profile
3.2.1 Trip Frequency and Length
According to the China Luxury Style White Book 2012, the affluent Chinese usually owns 15 days of oversea vacation per year,
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