PCA Expects an Increase in Travel and Leisure Needs Among Asian Americans and Asians Abroad

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The travel industry will need to get ready for Summer vacations

Asian Americans are very interested in exploring different parts of the United States with over 50% of them taking a domestic plane trip in 2013.

As the fastest-growing multicultural segment in the United States, Asian American spending habits have become more and more significant as they continue to play an important role in the growth opportunities for U.S. businesses. Their buying power has been on a steady rise and is projected to reach $1 trillion by 2017 [1]. In relation to an increase in purchasing power, PCA believes the travel and leisure industry is an area of high growth potential because Asian Americans are very interested in exploring different parts of the United States with over 50% of them taking a domestic plane trip in the past year [1]. Chinese tourists in particular have overtaken Germans as the world’s biggest spending traveler [2]. “This is a great opportunity for travel websites, airlines, upscale/outlet shopping centers, and even hotels and resorts to look into how they can focus some of their marketing efforts towards Asian Americans and international Asian travelers.” said Rey Lozano, VP of Marketing at PCA.

According to Nielsen’s 2013 Asian American Consumer Report, Asian Americans are 43% more likely than the general population to travel abroad as 75% of them feel that traveling is a great way to learn about other cultures. During the past 3 years, about 57% of Asian Americans have taken a trip outside the continental United States and out of those who have traveled to a foreign country, 46% of them are more likely to have flown in the first class cabin. Furthermore, out of the 51% of the Asian Americans that have taken a domestic plane trip, it is reported that they are at least 1.2 times more likely to go on a domestic cruise or visit theme parks [1]. As for the Chinese visitors, they are reported to have spent up to $102 billion dollars on foreign trips in 2012 according to the United Nations World Tourism Organization [2] and an estimated 100 million Chinese will be traveling abroad by the end of 2015, in which their total spending abroad will exceed that of the total global luxury sales [5].

To target these promising Asian tourists, it is important to be familiar with their traditional customs. For example, Chinese tourists tend to shop for family and friends. They are more likely to buy luxury items such as high-end bags, shoes, and clothes as gifts because these goods will cost an additional 60% from their original prices back in China due to import duties and other taxes [6]. In order to stretch their travel budget, Chinese tourists prefer to shop at outlet malls. Japanese tourists, on the other hand, spend heavily at restaurants that serve red meat since it is more expensive in an island nation like Japan [3].

Retail companies, tour operators, and hotel managers are all adapting various methods to welcome Chinese tourists to encourage more spending. “Last year, PCA partnered with Beverly Center in Los Angeles to create an exclusive and unique experience for Chinese tourists by connecting with our network of local tour operators, travel agents, and tour guides. The end result was over 300% ROI for the program – based on total sales receipts,” said Rey Lozano, VP of Marketing at PCA. PCA provided Beverly Center with in-language collaterals, in-language brand ambassadors, discount coupons and various branded premiums to greet each tour group in an engaging way. Tourists were greeted and guided by in-language VIP hosts at Beverly Center upon arrival at the VIP Reception area. This year, PCA continued our partnership by creating culturally relevant assets that would engage with the Chinese consumers during the Chinese New Year by proposing a wishing tree as a centerpiece concept as well as create on-site interaction with red envelopes to engage with target consumers and encourage sharing through social media.

To respond to the demand of Chinese travelers, one of the most important areas to focus on is creating the best travel experience for Chinese guests through language services [5]. Many of the stores at the major outlets in Los Angeles have begun to employ Mandarin-speaking salesclerks [3]. Four Seasons Hotels and Resorts properties have set up a team of Mandarin-speaking staff who is available 24 hours a day to assist guests. Other forms of adaptation include Chinese programming on in-room televisions and special breakfast menu items such as congee, dim sum, and fried rice and noodles [5].

To learn more about how your brands can authentically connect with the Asian American segment, contact us at (877) 234-6700.

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About PCA

PCA is a full service minority owned multicultural marketing & communications agency with an emphasis on the Asian American market. For over a decade, the agency has been a leader in providing integrated campaigns for Fortune 1000 companies. Located in Los Angeles and New York, our mission is to provide a unique approach to captivating audiences, become a valued partner to our clients and establish ourselves as leaders in the Asian American community.

PCA has served a wide array of clients including Verizon, Gilead Life Sciences, Warner Music Japan, Samsung Electronics, Philippine Airlines, International Media Distribution, Anheuser Busch, Diageo, Lionsgate Entertainment and the Los Angeles Dodgers.

For more information, please visit http://www.plancagency.com

[1] Nielsen Asian American Consumer Report 2013

[2] Chinese overtake Germans as biggest spending tourists

[3] Chinese tourists' spending in the U.S. takes off

[4] Entice the new generation of affluent Chinese tourists

[5] Chinese Guests Want Now to be Understood and Respected by International Hotel Chains

[6] By 2015 Chinese Tourists Could Spend More than all the World’s Luxury Shoppers Combined

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Jessica Wang
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