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January 23, 2017
China, Shanghai: 23rd January 2017 — Airlines and travel agents can expect online sales to soar in the days leading up to Chinese New Year and this year’s Golden Week festival, according to the latest data from Worldpay.
Last year, Worldpay recorded a 25% YoY increase in travel spending, as Chinese consumers took advantage of the public holiday, spending more than ever, to travel internationally and domestically visiting friends and families. Worldpay is predicting this number to increase again this year, as travellers get ready for two weeks of celebrations to welcome in the Year of the Rooster.
Analysis of 2016 card spending revealed the average value per transaction has also increased, with consumers spending nearly 35% more than previous years. This suggests that as the purchasing power of the general public increases, holidaymakers are opting to travel further afield instead of the traditional destinations such as Hong Kong and Macau.
Commenting on the data, Tang Kok San, Country Manager for China at Worldpay said: “As the Chinese New Year is seen in across the world, it looks as if the travel and tourism industry is set for another Golden Week ‘gold rush’. In recent years, we have witnessed a sharp increase in outbound Chinese tourism, helped by the increasing spending power of travellers. With this in mind, travel agents and airlines need to plan ahead and be prepared for the surge in last-minute travel bookings. Offering special Golden Week sales and ensuring that checkout-pages are mobile-optimised could be a good way to bolster sales and help customers to pay the way they want to.”
One of the areas that has benefitted from the wider spread of Chinese tourism is the UK, most likely thanks to the drop in value of the pound against the Yuan and more relaxed visa requirements. In fact the payments processor recorded an impressive 24% increase in spending on Chinese cards across the UK over the Christmas period1.
Kok San added: “We are expecting the UK to be a very popular destination for the Golden Week holiday this year. In the UK, where in the wake of Brexit, London is much cheaper this year for Chinese visitors2, our data has shown that Asian tourists are flocking to the UK to cash in on the weaker pound. And with the UK Government, along with many others, continuing to relax visa restrictions for Chinese visitors, it is easier for Chinese tourists to vacation further afield than ever before.”
About the data
Figures refer to Worldpay’s travel and airlines customer transaction data from 11/01/2016 to 08/02/16, compared with the same period in 2015.
Worldpay is a leading payments company with global reach. We provide an extensive range of technology-led payment products and services to over 400,000 customers, enabling their businesses to grow and prosper. We manage the increasing complexity of the payments landscape for our customers, allowing them to accept the widest range of payment types around the world.
Using our network and technology, we are able to process payments from geographies covering 99% of global GDP, across 146 countries and 126 currencies. We help our customers to accept more than 300 different payment types, by providing an end-to-end service including acquiring, treasury, gateway, alternative payments and risk management, all via a single integration to Worldpay. Worldpay makes global payments simple for many of the world’s leading organisations. http://www.worldpay.com/global
1Analysis of non-UK card transactions processed by Worldpay in the UK in December 2016 compared to the same period in 2015.
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