Summer Holidays

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McKinsey’s regular traveler survey has provided interesting insights into the aspirations of Mainland Chinese tourists, especially before the covid crisis , and their latest update is well worth reading. According to McKinsey “domestic airline passenger levels have grown steadily, and now sit at 50% of pre crisis levels. Hotel occupancy rates have also improved since the depths of the crisis, and are now back to 60% of last year’s levels. Domestic travel is now positioned to accelerate as summer approaches, with segments that drive demand during this period reporting an increased desire to travel in the near term”.

In particular, McKinsey identify three areas for local travel companies to work on when seeking to attract new business from domestic tourists:

  • Focusing on safety protocols – “an emphasis on strict safety protocols with travelers through verbal communication, as well as visual cues such as frequent cleaning and sanitising of travel products and facilities to win back clients”.
  • Adapting offerings – “offering more flexible terms for changing or refunding bookings to lower consumers’ risk”, and “introducing lower-cost products and tour packages that appeal to part-time workers and customer segments that have taken a hit to their income”
  • Focusing on families – cater to a preference for “smaller group tours in scenic outdoor spots, health and wellness programs, and family-oriented activities”.

When you think about it, these three principles could equally apply to any retail B2C business, in many industries, looking to recover from the Covid crisis?


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