While international travel bookings from China to Europe were down 22% overall in the second quarter compared to 2019, premium bookings were up 8%. Geneva and Copenhagen are among the destinations seeing the biggest increases compared to pre-pandemic prices, according to Olivier Ponty, director of intelligence and marketing at travel data company ForwardKeys.
John Grant, a senior analyst at travel data provider OAG, said the inability of European airlines to fly over Russian airspace is an ongoing issue. “Once this issue is resolved and given the weakness of the Chinese economy, European airlines are very reluctant to add any more capacity,” he said.
The European market is also struggling to attract Chinese travellers to popular domestic destinations such as Hainan, as well as short-haul destinations in Asia. With many Chinese consumers feeling the effects of the current economic situation, the recovery of long-haul travel among aspiring consumers is likely to be slower than expected.
Chinese shoppers are likely to find plenty of bargains when they visit Europe: Luxury handbags cost about 20% to 25% less than in China, according to Bain figures. But that’s hardly an incentive for Chinese travelers to travel long distances these days. “Non-EU customers are less price-conscious than they used to be,” says 10 Corso Como’s Borghi.
This makes strategic sense for the brand. At least in the short term, it makes sense to focus on highly valued clients. Bain’s Claudia D’Arpizio expects the brand to focus on customer acquisition activities, one-on-one activities and mutually beneficial partnerships with luxury tour operators. “There will be less transactions,” she says.
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