Chinese Tourists Expected to Take Longer Trips During Golden Week
As the Golden Week holiday approaches on Oct 1, travel industry experts anticipate that Chinese tourists will be embarking on longer trips compared to last year. Despite this, the experts do not foresee a significant increase in spending during this holiday period.
Factors Influencing Travel Trends
- The slowing economy and low consumer confidence are likely to influence travel decisions.
- Many travelers are expected to opt for cheaper domestic or short-haul overseas destinations.
- A decline in airfares is making travel more affordable for individuals.
Traditionally, the Golden Week holiday has been a peak period for Chinese travelers, especially for those heading abroad due to the extended break. However, the government has projected only a marginal 0.7% increase in the daily average number of trips handled by the nation’s transport sector in 2024.
Dr. Liu Simin, an official with the tourism arm of China Society for Futures Studies, mentioned that maintaining flat tourism spending compared to the previous year would be considered a positive outcome given the current economic conditions. He noted that tourism growth is closely tied to economic growth.
One Beijing office worker, Ms. Wang Xin, shared her plans to travel to Yangzhou with her family during the holiday. She highlighted the importance of saving money in the current economic climate, especially with concerns about job stability.
Falling Airfares
Flight Master data indicates that domestic air ticket prices are expected to be 21% lower compared to the same period in 2023. International economy class airfares are also projected to be 25% lower than in 2023 and 7% lower than in 2019.
Top international destinations for outbound travelers are anticipated to be short-haul Asian hubs like Japan, South Korea, Thailand, and Singapore. However, there is a notable shift towards long-haul destinations such as Australia, New Zealand, Britain, and France with longer stays.
HSBC analysts predict that travelers will take advantage of lower ticket prices to travel farther, stay longer, and potentially upgrade to higher-starred hotels. Although recent stimulus measures may have some impact on spending, analysts believe that purchases are likely to meet but not exceed 2023 levels during the holiday period.
Some foreign airlines, including British Airways and Qantas Airways, have reduced or suspended flights to China due to insufficient demand and intense price competition from local carriers. AirAsia Philippines also announced a halt in flights between Manila and China, citing a significant decline in traffic from China.
Despite these challenges, Korean Air Lines reported an improvement in regional travel demand and announced the launch or reintroduction of several routes to and from China in September.
Overall, the Golden Week holiday is shaping up to be a unique travel season with longer trips, lower airfares, and shifting preferences towards both short-haul and long-haul destinations.