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Revenge Travel and Revenge Spending

The end of the long lockdown period has led to the emergence of two phenomena that have marked the Year of the Dragon since its inception. One concerns spending on tourism and travel, so-called “revenge travel”, and the other concerns people’s willingness to buy, “revenge spending”.
The “revenge travel” symbolizes reclaiming missed opportunities and embarking on journeys postponed by the global pandemic. Meanwhile, the “revenge spending” reflects the urge to make up for lost time by spending money.

Revenge travel

The Year of the Dragon marked an upswing in tourism and travel spending. A significant portion of this spending can be attributed to mainland Chinese tourists who ventured abroad during the Lunar New Year period. The most popular destinations were Hong Kong, Japan, Macau, Thailand, Malaysia, Singapore, South Korea, France, Australia and Canada.
Analysts point to the “revenge travel” phenomenon as a significant catalyst for the revival of outbound tourism from mainland China after years of pandemic-related blockade. In addition to nearby destinations such as Hong Kong and Macau, Southeast Asia has seen a remarkable 1,026 percent increase in Chinese visitors.
As a matter of fact, Hong Kong welcomed more than 1.25 million mainland Chinese visitors during the Spring Festival, while Macau hosted 1.35 million during the same period.

Hong Kong Spring Festival, source: Xinhua

During this period, the hospitality and food industries emerged as key beneficiaries. As a matter of fact, according to Alipay, Chinese tourists increased their spending on food and beverages by 70 percent compared to 2019, spanning everything from casual dining to fine cuisine.
Another notable trend is the rising number of young mainland Chinese travelers. Affluent millennials and Generation Z individuals are increasingly shaping the landscape of outbound tourism, favoring personalized and culturally immersive experiences during their travels abroad.

Revenge Spending

Alongside the rise of revenge travel, there has been a surge in revenge spending. 
Originating in China initially, revenge spending, also known as revenge buying, became a global trend as economies reopened. It signifies consumers markedly escalating their spending beyond typical levels in response to significant adverse economic events, such as the COVID-19 pandemic. 
The total revenue generated from domestic tourism during this year’s holiday season reached 375.8 billion yuan ($55.6 billion), marking a 30 percent year-on-year increase from 2022 and a substantial 73.1 percent rise compared to 2019.

The phenomena of revenge spending and revenge travel in China not only highlight the pent-up desire for consumption and exploration but also signal a significant opportunity for companies worldwide. As people across the globe are increasingly indulging in these activities, businesses that tailor their offerings to meet this surge in demand stand to gain tremendously. Whether it’s luxury brands, travel agencies, or hospitality services, aligning strategies to cater to the desires of these eager consumers and travelers can unlock new avenues for growth and expansion. This trend underscores a pivotal moment for industries to tap into the evolving consumer behavior, suggesting that those who adapt swiftly and thoughtfully will be the ones to thrive in this reinvigorated global market.

Long Advisory digital marketing agency in China

Long Advisory supports Western companies in China through digital marketing. In fact, our experience has led us to believe that today, the best and most convenient approach to making your brand well-known in China is through a digital approach. Furthermore, thanks to our know-how, we know how to make your brand known to potential Chinese consumers. With the effective coordination of Long Advisory, your company will see a new rise in the largest market in the world: China.

Long Advisory is a digital marketing agency specializing in developing digital marketing solutions tailored for the Chinese market. 

Interested in expanding your brand in China? Contact us for more info and details at info@longadvisory.eu

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