Chinese tourists in 2018 paid for 32% of transactions using mobile payment, overtaking cash for the first time, according to a survey by Nielsen and Alipay.
Polling more than 2,800 Chinese travellers and over 1,200 overseas merchants, the survey sheds light on the latest trends in outbound tourism and the consumption habits of Chinese travellers. The report concludes that the average budget for Chinese tourists travelling abroad has increased, with more tourists adopting mobile payment.
Mobile payment methods also boosted the operations of overseas merchants. Some 58% of surveyed merchants said that after adopting the Alipay system, their foot traffic increased, while 56% claimed improved sales.
As more Chinese tourists travel abroad, their spending habits and choices become more influential.
Outbound Chinese tourists visited more destinations in 2018, with respondents visiting an average of 2.8 countries/regions, up from 2.1 in 2017. Both average actual spending and the travel budget for outbound Chinese tourists increased year-on-year: the former rising by 6% to US$6,026 and the latter by 15% to $6,706.
Shopping, accommodation and dining remained the top three spending categories for Chinese tourists. Discounts, quality and pricing are the three key factors weighing on Chinese tourists' shopping decisions.
Chinese tourists from second-tier cities have become a new driving force in the outbound tourism market. Of note, 38% of surveyed tourists from second-tier cities travelled to Europe in 2018, surpassing the proportion of respondents from first-tier cities for the first time. In addition, 22% of those from second-tier cities travelled to North America, on a par with the proportion of Chinese tourists from first-tier cities.
Chinese tourists have become more adventurous in their choice of travel destinations. In 2018, 10% visited Central Asia, Western Asia and Africa, a noticeable increase from the previous year. Chinese millennials are leading the trend in selecting less popular destinations. Some 18% of respondents born during 1990-99 have travelled to Central and Western Asia and Africa, while 5% have travelled to Nordic countries.
Chinese millennials are no longer the single most dominant group of mobile payment users abroad -- older generations are catching up. Some 68% of Chinese tourists born in 1970-79 used mobile payment methods while travelling abroad in 2018, almost equalling the percentage of millennials.
Last year, over 60% of Chinese tourists made payments with their mobile phones in locations ranging from Singapore, Malaysia and Thailand to Europe, the US and Australia. Some 90% of surveyed merchants in Singapore, Malaysia and Thailand reported encountering Chinese customers asking whether mobile payments were accepted.