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China

China Outbound and Inbound Tourism Spending rebounds on Alipay+

Data from Ant Group shows a robust rebound of consumer spending during the first back-to-normal Chinese New Year (CNY) travel season after the Covid-19 pandemic, especially in cross-border tourism.  Robust recovery, diversified destinations and scenarios for outbound Chinese tourists using Alipay. Through the Alipay+ cross-border mobile payment technology solutions, Chinese travelers may pay for goods, food and beverage, recreation and entertainment at over 8 million merchants in over 70 countries and regions, all from their familiar home app Alipay, with no need to change money or carry cash. Alipay also offers in-app instant tax refunds, as well as transparent and competitive exchange rates. A global campaign has been in full swing on the Alipay+ merchant network since December 2023 to attract Chinese tourists. In the CNY holiday week between February 9th and 12th, the number of transactions made by Alipay users overseas surpassed that of 2019 by 7% while consumer spending recovered to 82% of the 2019 level, or 2.4 times of 2023. Closer socio-economic connections between Hong Kong SAR, Macao SAR and the Mainland, the new visa-free policies from major Southeast Asia destinations and recovering international flight capacities are key drivers of the cross-border travel boom. While traditional Asia favorites keep their enthusiastic following, more distant destinations in Europe, ANZ, the Middle East and North America are also picking up in Chinese traveler spending. Hong Kong SAR, Japan, Macao SAR, Thailand, Malaysia, Singapore, South Korea, France, Australia and Canada are the top destinations for Chinese travelers by their Alipay spending. Thailand, Malaysia and Singapore combined saw a 7.5% increase over 2019, and a 580% leap over 2023, with Thailand leading in total volume and Malaysia showing the largest increase. Besides a larger physical parameter, the Chinese globe-trotter is also expanding her interest from traditional activities like shopping and tourism spots-hopping, to more immersive and unique local experience. Globally in the CNY week, Chinese tourists spent 70% more on food and beverage than in 2019, venturing from downtown hotspots to out-of-the-way local treasures. In-town transportation volume grew fast thanks to the passion for "travel local". Alipay users in multiple destinations now may choose from rail, taxi, rideshare, car rental, bus, subway and even scooter-share when abroad, all from the familiar app on their own phone. The cost per ride on any vehicle for Alipay travelers dropped by 60% compared to 2019. A lighter carbon footprint also means more local SMEs on the public transport network gain a share of international tourist revenue. China native: AI, popular culture and social buzz drive consumer enthusiasm On Alipay's home front, 2024 is also the first time AI features prominently adopted in online holiday celebration nationwide. AI features in the app drew 600 million user interactions during Alipay's signature annual Five Fortune campaign. Over 12 million Alipay users created personalized digital red packets using AI voice and video generation technology on the Alipay platform. Consumer enthusiasm is also fanned by major popular culture trends. Spending soared along Huanghe Road in downtown Shanghai, iconized in a recent hit TV series. Alipay figures show that the 2024 Chinese New Year Eve dinners at restaurants alongside Huanghe Road featured in the popular TV series Blossoms Shanghai were already fully reserved a week before the festival, with transaction volume going up by 800% year-on-year. Tourism businesses in the snow-cladded cities of Harbin and Shenyang in Northeast China were also surprised by an extraordinary influx of Chinese and international visitors thanks to a social media mega-buzz. Robust intra-Asia flows among Alipay+ partner e-wallets The Chinese New Year is widely celebrated across Asian communities. With new partnerships in 2023 and increased travel, total cross-border spending on the region's leading e-wallets powered by Alipay+ increased by 252% year-on-year. Daily average transactions increased by 304%. Japan, South Korea, Macao SAR, Thailand and Singapore are the top 5 most popular destinations for Alipay+ consumers besides the Chinese mainland. International e-wallets and cards-enabled Alipay accounts saw multi-fold expansion in the Chinese mainland. Since September 2023, 10 leading e-wallets and payment apps in Asia have been serving their roaming users across Alipay’s 80-million-strong merchant network in China, also supported by Alipay+. Visa, Mastercard, JCB, Discover®, and Diners Club International® also expanded their collaboration with Alipay for travelers linking their international credit or debit card to their Alipay e-wallet. During CNY 2024, international travelers to China spent 500% more on their international card-enabled Alipay accounts at merchants in the Chinese mainland compared to 2023. Chinese restaurants, tourist attractions and public transportation are the most popular use cases for international visitors traveling in China and experiencing the festival. "With its use spreading across age and income groups, increasingly mobile payment is becoming an important promoter of local and cross-border commerce in Asia and beyond, " said Douglas Feagin, Senior Vice President of Ant Group and Head of Alipay+. "We expect to grow our partnerships with the payment industry leaders, national tourist agencies and merchants in 2024 to generate more growth. "      

Airlines and Aviation

Korean Air expands its network in China

Korean Air has announced that they will resume service and expand their China network by the end of this month. The SkyTeam member is only flying 7 percent of its pre-pandemic China schedule. Flights between Korea and mainland China will grow from 13 per week on March 17 to 84 per week by the end of the month and 99 per week in May. Korean Air's weekly flight frequency on its China routes will approach 38% of 2019 levels in March/April and 43% of 2019 levels in May/June. By resuming and increasing flights, the airline will offer more flexible schedules between Incheon and downtown Gimpo and key cities in China like Beijing and Shanghai. Korean Air claims it will also endeavour to revitalise the aviation and tourism industries and Incheon Airport's hub status by increasing transit networks from China. Beginning in March, Korean Air will fly seven routes to China from Incheon: Beijing (up to twice daily), Xian (daily from May), Shenzhen (daily from May), Yanji (daily), and Xiamen (three times a week from May). SkyTeam member flights depart from Gimpo for Beijing Capital International Airport and Shanghai Hongqiao International Airport. Korean Air will also increase service to seven existing destinations departing from Incheon, including Shanghai (Pudong), Guangzhou, Qingdao, Shenyang, Dalian, Tianjin, and Nanjing. There will be twice-daily flights between Incheon and Pudong; daily flights between Guangzhou, Qingdao, Shenyang, Dalian, and Tianjin; and weekly flights between Nanjing and Incheon. Korean Air revealed earlier this month that the U.K.'s Competition and Markets Authority (CMA) had approved the airline's merger with fellow Star Alliance member Asiana Airlines. In order to merge with Asiana, Korean Air still needs crucial clearances from the European Union, the United States, and Japan. A total of eleven antitrust bodies have approved Korean Air's acquisition of Asiana. Once the merger is finalised, Asiana will likely end its frequent flyer programme, Asiana Club. In order to suit our members, Korean Air has created the Skypass programme. Korean Air has recently introduced a new regional business class on its Airbus A321neo fleet. This new service will be available on some of the China flights.

Airlines and Aviation

Scootin’ Back to China

Scoot, the low-cost subsidiary of Singapore Airlines (SIA), will steadily resume flights to and from China to accommodate strong travel demands in line with the further relaxation of border restrictions. Scoot will also be ramping up flight frequencies across its network, particularly to destinations that are popular for summer travels in Australia, Greece, Indonesia, Japan and Malaysia. Since travel restrictions were lifted globally in 2022, Scoot has resumed most of its pre-Covid routes, increased flight frequencies to ensure its capacity matches demand and expanded its network with the launch of new destinations such as Jeju, Lombok, Makassar, Miri and Yogyakarta. China From now until the end of Northern Winter 2022 (25 March 2023), Scoot will progressively increase its total flights to China from 14-times weekly to 26-times weekly by stepping up flight frequencies to seven of its existing points, comprising Fuzhou, Guangzhou, Hangzhou, Nanjing, Qingdao, Tianjin and Zhengzhou. The pace of resumption continues into the Northern Summer period, which spans 26 March to 28 October 2023. Scoot will resume flights to Haikou, Ningbo and Xi’an in April 2023, bringing the total number of weekly flights to China to 42-times weekly by the end of April 2023. With services to Nanning and Shenyang resuming in May 2023, customers can look forward to 57-times weekly flights to China by the end of June 2023. Other Network Updates Scoot will increase flight frequencies to travellers’ favourite warm-weather destinations, just in time for customers to plan their summer travels. Flight frequencies to Athens will increase from two-times to four-times weekly, flight frequencies to Perth will increase from 10-times to 12-times weekly, flight frequencies to Sapporo through Taipei will increase from three-timesto four-times weekly and flight frequencies to Tokyo through Taipei will increase from 10-times to 12-times weekly. Closer to Singapore, flight frequencies to Langkawi will increase from four-times to seven-times weekly and flight frequencies to Manado will increase from three-times to four-times weekly. Some adjustments will be made to optimise resources and accommodate other operational considerations. In particular, Scoot services to the Gold Coast will be suspended after 17 July 2023 (last flight out of the Gold Coast). Customers with existing bookings will be notified of their options.  New Schedules for Pokémon Air Adventures Flights Pokémon Air Adventures, a partnership with The Pokémon Company, continues to be well sought-after by Pokémon fans and others looking for unique experiences. In February 2023, Scoot launched these inaugural themed flights on the Pikachu Jet to Bangkok. In March 2023, the Pikachu Jet will make its way to Taiwan. Customers can choose from eight scheduled flights in March 2023 and six scheduled flights in April 2023. For more information on the Pikachu Jet schedule, please refer to Scoot’s website. Scoot chief executive officer,  Leslie Thng, said, “Scoot has been anticipating the return of travel to and from China and we will scale up operations to meet the demand from this sizeable market. We will also ramp up frequencies to other popular summer destinations as customers continue to seek travel to connect with loved ones, explore new cultures and create new experiences. This year, we aspire to continue redefining value-travel by providing our customers with safe and seamless travel journeys, quality service, differentiated products and experiences at affordable fares.”    

China

When will we see Chinese outbound tourists again?

In a guest column Anita Chan, CEO of Compass Edge, talks about how pent-up demand is building up and the interest to know what’s happening in other parts of the world is increasing in China. Her company, offering online solutions to independent hotels, is a niche service provider offering cost-effective branding solutions for overseas hotels to establish an online presence for the booming Chinese FIT market. Not good news from me. Does zero-COVID strategy in China work better than live-with-COVID strategy in the West? I have my opinion but I am in no profession to discuss this.  But my view is, the longer China sticks with the zero-COVID strategy, the longer we have to wait to see the Chinese outbound tourists to return.  I think most of us feel it at this point but just many China experts that rely on Chinese business do not wish to break this bad news. I’ll be honest.  I am now in Canada with no flights returning to Hong Kong till end of March in addition to the strict 21-day hotel quarantine requirement.  Not only Hong Kong, there are more flights canceled from US, Canada, UK to China in the month of February & March. So, you can understand the answer to the question does not only depend on whether the borders open or not.  With strict quarantine rules for airline crew and the short-notice flight suspension mechanism, many airlines choose not to fly the routes to Hong Kong & China. And it does not stop here.  Chinese government has imposed even stricter rule now to require one more PCR test i.e. 7 days before departure then another PCR test 48 hours before departure.  Upon arrival, the longest quarantine port is Shenyang, which they call 28 + 28, which means 28 days of complete lockdown in a hotel then another 28 days of home quarantine.  56 days in total… will you travel?  One will be considered lucky if their ports of call only require 14 + 7 like Shanghai, Guangdong at this point.  All these are add-on costs to travel, money plus time plus stress i.e. quarantine hotel cost, PCR test cost, insurance cost coupled with the anxiety at the airport, to get tested frequently, etc.  Hence, international travel even for business cannot easily happened under this zero-COVID strategy. Meanwhile in the West, UK just relaxed its travel restrictions.  From 11th of February, fully vaccinated people traveling to the UK will no longer need to take any COVID tests – either before or after arrival.  From where I am, in Ontario Canada, our Premier announced that the plan is to lift most measures by mid-March and hopefully life will be back to “normal”. In addition, World Health Organization (WHO) also said COVID-related travel restrictions should be lifted.  Obviously, this is in support of the live-with-COVID strategy. Unfortunately, the more the rest of the world opens up to international travel, the higher the risk that China will become increasingly isolated in the outbound travel market.  So, when will we see Chinese outbound tourists again? I have seen a brief news article by Civil Aviation Administration of China (CAAC) that stated that 2023 – 2025 will be when there will be explosive growth of the travel market again, including the resume of international travel. While there are many uncertainties, to end on a positive note, when my company does social listening for the China market (yes, we are still working), we learnt that their desires to travel internationally have not ever decreased.  In fact, we can see the pent-up demand is building up and the interest to know what’s happening in other parts of the world is increasing.  My wishful thinking is, once the Chinese government adjusts its strategy, which can be overnight, the floodgate will open and we will see the happy faces of Chinese outbound tourists again.

Air

Flight bookings in China increase 70% for Spring Festival

The 2022 Spring Festival travel rush, also known as Chunyun, has kicked off. On the first day of the 40-day travel season ending on February 25, China’s civil aviation services transported 780,000 passengers. Regulators estimated that a total of 1.18 billion trips will be made nationwide during this peak travel period. Travel data showed that passengers were booking earlier this year, and bookings increased by more than 70% in the week of January 10 to 16 compared to the week before. Airfare for nationwide destinations went up year-on-year – Trip.com Group reported that this year’s Spring Festival fare averaged at RMB 800 (USD 126), over 40% higher than the same period of last year. The fare hike was also attributed to cancellations of numerous direct flights. Trip.com’s data also revealed that passengers were booking farther in advance and were more concerned about safety. The search volume for flight tickets on Trip.com spiked by 30% year-on-year between December 17 and January 16, a month before the travel rush began. Top departing cities and destinations were Shanghai, Beijing, Sanya, Chengdu and Chongqing. As the 2022 Beijing Winter Olympics and winter sports season approach, travelers’ enthusiasm for winter sports vacations is surging. Changchun, Harbin, Shenyang, and other destinations in Northeast China were also hot choices. (Source: China Travel News)

Associations

ITB China 2021 kicks off with who’s who of Chinese travel industry on board

The Marketplace for China’s travel industry is once again attracting a diverse exhibitor representation, quality buyers and sees a strong line-up of partners this year. The 4th edtion of ITB China will be held as a purely virtual event, offering all participants a digital platform to meet, chat and exhange ideas with key industry players worldwide. The virtual platform will open on 8 November and run for two months until the end of the year, connecting participants over an extended period of time for a total of 50 days. “After months of preparation and hard work by our entire team, we as Messe Berlin are proud to officially open ITB China Virtual 2021,” said Martin Ecknig, CEO Messe Berlin. “For the first time ITB China goes fully digital. The tailormade new virtual platform will meet the ever-changing needs of our exhibitors and buyers, giving them a platform to explore opportunities, ideas and innovations with an optimistic future for our industry in mind,” he added. By offering a longer digital trade show period, all industry attendees will get adequate time to connect with more business partners digitally, discover brand new products and innovative services of the international exhibitors from over 50 countries on the virtual show floor, network with top Chinese buyers from over 200 leading travel agencies and companies, and learn from the best industry experts all in one place. As the Strategic Partner, the European Travel Commission (ETC) will have a strong exhibition presence at the virtual event, with many European destinations joining the virtual ETC booth including: Ards and North Down, Armagh, Austria, Belfast, Bulgaria, Croatia, Czech Republic, Denmark & Norway (Scandinavian Tourist Board), Estonia, France, Germany, Isle of Ireland, Monaco, Netherlands, Northern Ireland, Poland, Portugal, Saxony, Serbia and Zagreb. A number of European destinations will also be joining ITB China with their own virtual booth, including Hamburg, Italy, Malta, Spain, Switzerland, Thesprotia/Vlora, Turkey and the United Kingdom. Furthermore confirmed destinations from all over the world are this year’s Official Island Travel Partner Maldives, Abu Dhabi, Australia, Fiji, Israel, Los Angeles, New Zealand, Penang, Qatar, Sarawak, Saudi Arabia, South Africa, Sanya, Shenyang, Shaanxi, Tahiti, The Bahamas, and many others.

Associations

ITB announces industry meet up in seven cities across China

The organisers of ITB China, China’s largest B2B exclusive travel trade show, have announced the launch of the ITB China Industry MeetUp, at an exclusive networking event for industry senior representatives in Shanghai. The meet up is a series of events set to take place in seven major cities in China between September and November 2020. “More than ever, we need a platform like the ITB China Industry MeetUp in order to bring together representatives from all fields of the industry, to explore new market demands and to develop effective market solutions,” said Lucinda Wang, chief operating officer of Shanghai Jinjiang Travel Holding Co. The events are designed to help the industry recover from the economic post-Covid-19 fallout, providing unique opportunities for industry professionals to get updated on latest trend insights, relating to the ‘new normal’, as well as help travel suppliers to meet and connect face-to-face with members of the exclusive ITB China buyers circle in key cities and regions across China. The seven stations of the ITB China Industry MeetUp in 2020 will be in Shenzhen on 24 September, Changsha on 15 October, Beijing on 27 October, Shenyang on 29 October, Chengdu on 10 November, Xi’an on 12 November and Shanghai on 25 November. Marriott International has become the partner hotel of the event series. Each event will bring together 100+ attendees from leading travel agencies and senior representatives from the industry.

Air

NokScoot soars to new heights for punctuality

NokScoot, the joint venture low-cost carrier of Thailand’s Nok Air and Singapore’s Scoot, achieved its best-ever annual on-time performance (OTP) since the start of operation with an average of 86.55% in 2019. The airline’s 2019 punctuality report revealed that the airline obtained its highest OTP on record even though the flights flown increased by 30% or 1,162 flights. Last year alone, it operated 4,951 flights, an increased from 3,789 flights flown in 2018. During the busiest month of 2019 in December, it earned a perfect 100% OTP for both, Tokyo Narita International Airport in Japan and Qingdao International Airport in China. “At NokScoot, we always work hard in order to offer the best services and provide an enjoyable flying experience to our passengers.” said Yodchai Sudhidhanakul, CEO of NokScoot. “OTP is crucial and has always been one of our five core values, ‘Consistently Deliver’. We are committed to maintain and enhance the highest standard in every aspect, including punctuality, safety and convenience.” The carrier currently flies from Bangkok to nine destinations in East Asia and India, including Nanjing, Qingdao, Shenyang, Tianjin, Taipei, Tokyo, Sapporo, Osaka, and New Delhi.

Air

NokScoot boosts 777 fleet

NokScoot, a joint venture between Thailand’s Nok Air and Singapore’s Scoot, took delivery of its sixth and seventh Boeing 777-200. The fleet expansion of the Bangkok-based long-to-medium-haul low-cost carrier will enable the airline to expand services in Asia. The airline plans to add more destinations in China, India and Japan, the three countries that generate strong leisure travel traffic to Thailand. Japan is also a popular destination for Thai visitors after visa-free travel concession was introduced. “This sixth and seventh B777-200 will help us further expand our network and elevate Thailand’s aviation industry and image. We are moving forward with our plan to embark on new services and add more flights to China, India, Japan as well as South Korea in the near future,” said Yodchai Sudhidhanakul, CEO of Scoot. Currently, NokScoot operates regular flights to Nanjing, Qingdao, Shanghai, Shenyang and Tianjin in China, Narita and Osaka in Japan, New Delhi in India and Taipei with the newest destination, Sapporo, due to join the network on 27 October.

Asia

Hot hotel openings: Rosewood’s new “mansion in the sky” and more

On this week’s round-up of hot hotel openings, we’re taking a look at Rosewood’s sky-high property in Guangzhou, a luxury lodge in the Arctic Circle and more. Rosewood Guangzhou Rosewood Guangzhou Dubbed as a "mansion in the sky", the second urban outpost for Rosewood Hotels & Resorts in mainland China opens as the tallest 5-star hotel in the world. Located on the top 39 floors of the 108-story CTF Finance Centre (the 7th tallest building in the world), the property has become a fitting symbol of the Greater Bay Area's emergence as a global economic powerhouse. Soaring to 530-meters at its highest point, Rosewood Guangzhou also earns the singular status as the world's tallest 5-star hotel. “We are thrilled to open Rosewood Guangzhou during this ambitious ascent” “As one of the fastest-growing cities in mainland China, Guangzhou has been – and will continue to be – a major contributor to economic growth. The city is well on its way to becoming a global megacity with increasing international influence, as the country's vision for the Greater Bay Area comes to fruition, and we are thrilled to open Rosewood Guangzhou during this ambitious ascent,” said Sonia Cheng, chief executive officer, Rosewood Hotel Group. “Rosewood Guangzhou is our second urban outpost for the Rosewood brand in mainland China and we look forward to the property offering a differentiated vision for a modern urban lifestyle in the country.” Octola Private Wilderness Octola Private Wilderness Recently completed, Octola Private Wilderness is a luxury cabin within the Finnish Arctic Circle. Created by Janne Honkanen, CEO of arctic region travel operator, Luxury Action, the 10-suite log cabin is built inside 300+ hectares of private wilderness with no light pollution. Whether guests book the entire cabin of 10 suites or take a wing of six or four suites, the rates are all-inclusive and allow them to be taken care of by a team of discreet local staff trained to meet every need, including a private butler and a wilderness guide. Conrad Shenyang Conrad Shenyang Hilton has announced the opening of Conrad Shenyang, a 315-room hotel located in the heart of the historic city that was home to the birth of the Qing Dynasty. Situated at the top of Shenyang's tallest building, the iconic Forum 66, the property is located in the central business district and offers the city's largest guest rooms. Conrad Shenyang is also conveniently located near administrative bureaus, high-end retail shops and entertainment venues. InterContinental Okinawa Chura SUN Resort InterContinental Okinawa Chura SUN Resort InterContinental Hotel Group (IHG) has signed the hotel management contract for InterContinental Okinawa Chura SUN Resort, set to open in 2023. Okinawa has been attracting domestic and overseas travellers with its blue ocean and rich nature as well as its history and local culture, welcoming 10 million visitors last year and hitting the highest record ever. The new-build InterContinental resort will be located in Chura SUN Beach, an area boasting the closest white sandy beach to the airport. The neighbourhood is raising attention as there is also a new development project for shopping, restaurant and entertainment complex in the area. Aiden by Best Western @ Cape Point Aiden by Best Western @ Cape Point Best Western Hotels & Resorts has announced the opening of Aiden by Best Western @ Cape Point in the Cape Cod town of West Yarmouth, Massachusetts. The second US property to open as part of the company's new boutique hotel concept, Aiden by Best Western @ Cape Point captures the essence of Cape Cod's ocean-side lifestyle. Located in West Yarmouth, in the heart of Cape Cod, Aiden by Best Western @ Cape Point is a place for travellers and locals alike to relax and recharge after a day of exploring New England's old-school charm. Guests will find beaches, restaurants, shopping centres, and outdoor attractions nearby, including Bass Hole Boardwalk at Grey's Beach, Whydah Pirate Museum and Seagull Beach. We’re rounding up the latest hotel openings every Friday — click here to see the full list.  You may also send us press releases via hospitality@traveldailymedia.com.

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