American Cities a Better Deal than Europe for Chinese Tourists
Chinese citizens are traveling abroad as their incomes increase with the US and Europe as popular destinations.
The choice of a destination depends on travel expenses which include the cost of hotels, food, traveling, and shopping. In this report, we will compare the Chinese travel cost for five popular cities: Los Angeles, Boston, New York City, London, and Paris.
For example, we compared the Chinese travel cost of airfare, hotel, dining, and transportation for a three-day trip. In the five destinations chosen, London has the highest total expense.
For a plane ticket that departs from Beijing, the cost of a ticket to London is double of the ticket to Boston. Overall, the airfare rates to European countries are generally higher than the airfare rates to America.
In comparing the cost of hotels, the cities that are more economically well-off–New York City, London, and Boston–have higher hotel prices.
European cities tend to have higher dining expenses with London being the most expensive.
Overall, it costs around $1,400, which is ￥9,000 RMB, for a 3-day trip to the 5 cities examined Airfare consumes the biggest percentage.
For most Chinese tourists, shopping is a must for trips abroad, as the luxuries, electronics, and cosmetics are less expensive than China.
The chart below shows the comparison between the prices of the products in Europe, the U.S., and China. The prices are based on five products, including luxuries and electronics.
It is clear that most of the products are priced at least ￥1000 RMB higher in China. Some product prices, such as MK totes, are labeled 2 times higher in China compared to the price in the U.S. There is a big difference between electronic prices as well. Nikon DSLRs are sold at least ￥3,000 RMB more expensive in China compared to the U.S.
Overall, products in America have price advantages when compared to Europe and China. Four of the five products listed in the chart are the least expensive in the U.S.
Assuming Chinese tourists take a three-day trip to the five cities and purchases all the products mentioned above, we can conclude that American destinations have a price advantage; whereas London is the most expensive travel destination.
If we add the total price of the 5 products in China, it exceeds￥40,000 RMB, excluding travel costs. We can then infer that the high cost of shopping in China is another factor which encourages people to travel abroad, as they would be able to enjoy a three-day trip and buy all the products, with only an extra of ￥2,000 RMB.
From the statistics provided in the report, we can make the following conclusions: First, the average traveling expense for European and American cities do not differ significantly; costs start at￥9,000 RMB for a three-day-trip. Second, in terms of total travel expense, London is the priciest city.
Third, Europe and the U.S. have a huge price advantage in the cost of luxuries and electronics and the United States has the best deals. The difference in price is a strong incentive for Chinese tourists to travel abroad.