The global travel retail sector has gone through a significant transformation, driven by the evolving behaviours and preferences of consumers, particularly Chinese travelers known for their high spending power and demand for premium experiences.
Reports suggest that just within 2024, travel originating from mainland China increased by close to 400% globally, with some destinations experiencing surges of more than 2,000%. This increase is attributed to renewed confidence in global travel and the availability of visa-free agreements with several countries. Additionally, the number of outbound trips from China is expected to reach 130 million in 2024, signalling a strong demand for international travel among Chinese consumers.
To help brands tap into this market, Petal Ads, Huawei’s mobile advertising platform, and E23, a travel retail martech startup, started a co-operation to reshape how brands engage with high-value Chinese consumers. This collaboration, announced during the Cannes E23 event, brings together Huawei’s extensive data management capabilities and E23’s expertise in travel retail to create a holistic solution for reaching Chinese travelers.
With the event theme “Transforming Travel Retail Media Engagement”, Petal Ads also shared valuable insights on effectively engaging Chinese audiences, highlighting the importance of tailored strategies to connect with this highly sought-after demographic.
The co-operation leverages Huawei’s first-party data and advanced AI-driven insights with E23’s Demand-Side Platform (DSP), addressing challenges in engaging high-value consumers in the fragmented travel retail sector.
By integrating advanced data solutions and cross-device advertising formats, the co-operation enables brands to connect with travelers at every stage of their journey, from pre-departure to in-flight and upon arrival, ultimately enhancing engagement and conversions in duty-free environments.
Current state of travel retail and Chinese consumer behaviour
The travel retail sector is a booming segment within the retail media landscape, with global spending expected to reach USD 140 billion in 2024. Chinese travelers are one of the most significant contributors to this growth, representing a key demographic that drives high revenue for brands targeting luxury and premium goods.
According to Petal Ads, Huawei’s ecosystem includes over 580 million monthly active users in China, providing brands with a vast audience to engage through targeted advertising. The typical Huawei user profile shows a balanced gender ratio, with 55% male and 45% female users. The platform also has a strong presence in Tier 1 and Tier 2 cities, where 48% of its users reside. These demographics make Huawei’s ecosystem an ideal platform for brands looking to engage affluent consumers with a propensity for luxury spending.
However, effectively reaching these high-value Chinese travelers is not without its challenges. The travel retail sector faces fragmented media channels and changing consumer behaviours, which complicate traditional advertising strategies.
Brands must be able to deliver personalised and contextually relevant experiences that resonate with this audience, who are accustomed to high-quality and targeted engagements.
This is where the co-operation between Petal Ads and E23 stands out, providing the tools needed to navigate these complexities through precise targeting and enhanced personalisation strategies.
How the Petal Ads-E23 co-operation provides a holistic solution
The Petal Ads and E23 co-operation offers an innovative solution for brands seeking to engage Chinese travelers throughout their journey. Petal Ads’ platform supports diverse cross-device advertising formats, including TV, smartphones, wearables, and automotive interfaces. Its reach extends through over 580 million monthly active users in China, giving brands unprecedented access to potential customers.
This capability, combined with E23’s DSP, enables precise targeting and sophisticated audience segmentation, allowing brands to reach consumers at key moments when they are most likely to engage or make purchasing decisions.
Huawei’s first-party data, housed within its Data Management System, offers a wealth of insights into user behaviours and spending habits, enabling intelligent segmentation and effective retargeting strategies. By leveraging this data, Petal Ads and E23 are able to provide a highly personalised advertising experience.
AI and predictive analytics further refine these capabilities, adapting ad content in real time based on consumer interactions and preferences. This ensures that every engagement delivers content relevant to the intended audience, leading to higher engagement and conversion rates.
Future trends and innovations in travel retail media
As the travel retail sector continues to evolve, new trends are emerging that will shape the way brands engage with consumers. The sector is embracing AI-driven solutions to enhance ad delivery and personalisation. Petal Ads uses adaptive marketing technologies that adjust content and targeting in real-time based on shifting consumer behaviours and external factors like location or travel disruptions.
Location-based services are also becoming important, enabling precise engagement at key touchpoints such as duty-free zones or in-flight settings. E23’s integration of Huawei’s first-party data with travel insights further refines this targeting capability.
Emerging media channels, like in-flight entertainment and in-store digital screens, are increasingly part of travel retail strategies, providing brands with new ways to engage high-value consumers both online and offline. The Petal Ads-E23 co-operation is at the forefront of these innovations, redefining brand interactions with travelers.
Redefining engagement in the travel retail sector
The Petal Ads-E23 co-operation presents a unique opportunity for brands to navigate the challenges of the travel retail sector. Through advanced marketing tools and data-driven insights, this collaboration enables more personalised engagement with Chinese travelers, boosting growth and brand visibility in a highly competitive market.
