1.373 billion. China’s current population – one that is now deemed as ageing. A country that used to have a 43 year average life expectancy now has a 74.7 year average. China clearly must be doing something right, especially with about 30% of the population being over the age of 50. This figure speaks volumes about China’s continuing improvement in a number of areas. First of all, healthcare has improved vastly and that includes people understanding more about the importance of a balanced diet and regular exercise, but also huge improvements in living standards and the quality of life, with more time being put aside for leisure. Considering all these factors, the population of Chinese citizens aged 65+ is predicted to reach 219 million in 2030 which begs the question, how did China get here?
Much of the cause of China’s ageing population lies with the famous one-child policy. Although highly controversial, the policy achieved what it set out to do. But while the growth of the population slowed, China’s gender imbalance worsened. For instance, 2016’s estimate stands at 40 million more males than females – a staggering number. A lot of these extra men could be potential fathers, but how can they be fathers when they can’t find a mate? The solution has been to get rid of the policy but, even now, couples are placing less importance on a big family and are actively choosing to have only one child or none at all. A decreasing number of young people paired with an increasing number of elderly citizens equals the reason for China’s ageing population, which leads to the question:
So what does China’s ageing population mean for outbound tourism?
If people live longer, they have more time for travelling after they’ve retired. If people have fewer children and grandchildren to spend their money on, they have more disposable income to spend on travel. But would older citizens necessarily spend money on travelling?
First off, travelling educates people through new experiences. According to Chinese travel agent, Zhang Nanbeichao, older, well-educated travellers are usually eager and curious to learn new things. In today’s age, senior citizens also have good retirement pensions which they don’t save for the future generations of their family. This may be due to the combination of their children acquiring well-paid jobs and Chinese families getting smaller, resulting in older citizens having more disposable income which may be spent on travelling. And if these figures are anything to go by, they do spend their money on travelling as the willingness to learn new things paired with a higher disposable income has seen the “grey-hair travel” market grow by 50%.
How many people are we talking about? Over 5 million elderly Chinese citizens travel each year. And 47% of them even go long-distance. In a series of interviews conducted with ‘grey-hair travellers’ by Shanghai Daily, it seemed as if the norm for elderly Chinese citizens were two trips during the year – one being long-distance to Europe or America, and the other short-distance to other parts of Asia. The vast number of journeys being made by ‘grey-hair travellers’ brings in tourism revenue of over 10 billion yuan ($1.6 billion) yearly. China’s ageing population do like to spend their money on travelling.
What can travel brands do to market themselves to China’s ageing population?
We need to understand what older clients want. Beautiful and famous places? Of course. Tour package deals? Definitely. Cruises? Yes. Luxury shopping? Yes, but not as much as the millennials. But then, there are also the practicalities. Does cost matter? According to the same series of interviews, cost was actually one of the least important factors when considering when and where to travel. If tourism is seen as an important way for over-60s to improve and enrich their retirement, then really it comes down to whether the destination is suitable for senior citizens; and if not, then services should be adapted in order to cater for them. Especially if seniors are predicted to become the tourism market’s main force, with the president of Ctrip, Fan Min, expecting the number to have grown to 300 million within 10 years.
For Western travel brands, there is huge potential in assessing what an ageing Chinese population needs when travelling so they can tailor their products and services to fit these needs. However, many international tourist destinations have yet to realise this market’s potential. The problem? Many tour packages are unable to proficiently care for elderly travellers, which brings us back to the previous question:
What can destinations, hotels and attractions do to market themselves to China’s ageing population?
The clearest solution… introduce more age-appropriate, tailored services for seniors. But what does that entail? Ctrip places emphasis on shorter journeys and high-rated, senior tour guides who are also qualified to provide emergency assistance. In addition to this, the China Association of Travel Services is also currently working on guidelines that they can issue to tour operators. The rules will include uncluttered schedules, early bedtimes and healthy meals. With the introduction of these guidelines, it should be easier for travel brands to market themselves to China’s ageing population.
Take Iberostar Resorts for example; they offer all-inclusive, adults-only holiday destinations, spacious rooms, gentle recreational activities such as golf, excellent dining and, perhaps most importantly, 24-hour service. Having realised the potential for the ageing market, their resorts are world-class. Granted, these changes aren’t specifically targeted at Chinese senior travellers but with the right targeted promotions there is nothing to stop Iberostar attracting Chinese seniors too. After all, they’re already halfway there. Or perhaps take a leaf from China Odyssey Tours’ book; they’ve been providing tours of China to the elderly since 2005, including a private car and guide, a flexible and relaxing itinerary and a one-on-one travel consultant all at an affordable price. If that’s not good enough, travellers can actually tailor-make their own tours. The result? They are an award-winning tour operator boasting more than 10,000 customers each year.
The ‘grey-hair’ market is clearly growing into a powerful force, so it makes sense to strategise sooner rather than later. 219 million elderly Chinese tourists at your door? Yes please!
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