With inductive analysis of relevant statistics and literature, this paper reveals an elite middle-age Chinese cohort of significant size, with ample buying power and considerable discretionary time to support the outbound travel of themselves and their children. This middle age group has experienced a time of dramatic change in recent years causing a transformation of traditional livelihood activities and lifestyles. Associated changes in wealth and values contribute to overseas travel proclivities that could entail both positive and negative impacts for both host and guest. The depiction of the current status and potential development in Chinese outbound travel suggests that this group could possibly form a ‘3rd wave’ of Chinese outbound tourists. The segmentation based on generation cohort and social status is particularly suitable in helping the tourism industry service providers in identifying market characteristics for marketing, product development and comprehensive destination development.