Mobile payments gaining popularity with outbound tourists

The latest data on Chinese using mobile payment overseas point to the growing sophistication of Chinese travelers as they embark on outbound trips.

Portugal, the Philippines and the Maldives are shaping up to be the emerging hot spots as tourists begin to take long-haul trips, mobile wallet giant Alipay said in a report tracking overseas payment during the weeklong National holiday that ended on Oct 7.

This is reflected by the exponential growth in mobile payment in the three economies, at 63 times, 25 times and 15 times respectively in the number of transactions from the same time last year, Alipay said.

Online bookings for niche destinations like Montenegro surged 14 times compared with a year ago, followed by Uzbekistan at 4.7 times, Alipay said, citing data from its sister online travel agent Fliggy.

WeChat Pay, another popular mobile payment tool, identified some Chinese to have ventured into new territories as far as Renca in central Chile, based on their shopping records using the payment service.

The findings echoed earlier research released by homestay service portal Airbnb, which found that the Chinese are becoming drawn to visiting destinations that are considered to be "off the beaten path".

Those born in the 1990s and after are expected to account for half the new outbound travel population, and the group appears to be more enthusiastic about venturing into new territories, Airbnb said in a report last month tracking the changing demographics of Chinese outbound travelers.

"As 'trend followers', they tend to follow popular routes on social media apps such as Douyin and Instagram," said Airbnb China president Peng Tao.

This coincided with Alipay's data that the so-called Generation Z saw overseas usage of Alipay surge by 130 percent year-on-year. Meanwhile, the number of users aged 60 and older also rose by 30 percent.

Chinese are also dispelling stereotypes of visiting mostly landmarks and partaking luxury goods, and are gradually turning to more experience-driven items.

Sales of intra-Europe railway tickets surged 35 percent from the same time last year, according to travel portal Fliggy, whereas satiating palates for durians helped fuel trips to Thailand and Malaysia by 59 percent year-on-year.

A survey released by Hilton Group and research houses Kantar and Nielsen earlier this year arrived at a similar conclusion: Chinese outbound travelers now value experiences over obligatory visits to landmarks, and they are prepared to spend extensively on local dining and cultural activities.

The study identified the millennial travelers as upholding the "work hard, play harder" ethos, with two-thirds of respondents opting to "live in the moment" and seek instant gratification to quickly recover from the hectic pace of work.

"Bolstered by higher disposable income, wider international exposure and easier accessibility of travel, Chinese consumers are more confident in exploring new destinations and looking to gain new experiences when they travel," said Gary Steffen, global head of Canopy by Hilton, a sub-brand of Hilton that focuses on providing lifestyle-driven lodging options.

Alex Dichter, a senior partner at McKinsey who led a recent study on China's outbound travelers agreed:"When planning a trip, Chinese outbound tourists desire places that offer natural scenery, high value for money, and family-friendly locales, though the importance of these factors varies by destination."

Overall, in-store overseas transaction volume from the Oct 1 week grew about 10 percent over the same period in 2018, according to Alipay.

Average total spending per user increased by 14 percent to about 2,500 yuan ($351). European destinations topped the list in terms of the highest total spending per user. The United Arab Emirates and Japan ranked the highest outside of Europe.